Unformatted text preview: January 1, 20X3: Fund Balance—Reserved for Encumbrances 21,000 Fund Balance—Unreserved 21,000 City Council cancels 20X2 order for equipment. E17-6 Accounting for Inventories of Office Supplies a. Consumption method of accounting for inventories: (1) Purchase of supplies: August 8, 20X2 Expenditures 3,600 Vouchers Payable 3,600 Acquire inventory of supplies. (2) Entries at end of 20X2 fiscal year: September 30, 20X2 Inventory of Supplies 2,800 Expenditures 2,800 Recognize ending inventory of supplies. Fund Balance – Unreserved 2,800 Fund Balance – Reserved for Inventories 2,800 Establish fund reserve for ending inventory. Fund Balance – Unreserved 800 Expenditures 800 Close expenditures account....
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- Fall '11
- Accounting, Generally Accepted Accounting Principles, Federal government of the United States, general fund accounting