Reference no: EM131704186

Question: (Accounting for acquisition and use of materials and supplies) On November 1, 2013, a federal agency had the following balances in two of its accounts: The budgetary account Allotments-realized resources had a credit balance of $250,000, and the proprietary account Fund balance with Treasury had a debit balance of $800,000. Prepare journal entries to record the following transactions, which occurred in November and December, regarding a single purchase of materials:

1. The agency's inventory control department sent a purchase request to the purchasing department to order materials at an estimated cost of $140,000.

2. After soliciting competitive bids, the purchasing department ordered the materials at a cost of $150,000.

3. The materials arrived, together with an invoice for $150,000. After inspection, the materials were accepted.

4. A disbursement schedule was sent to Treasury requesting payment of the invoice.

5. Treasury notified the agency that the invoice was paid.

6. To prepare its quarterly financial statements, the agency took an inventory and found that $35,000 of the materials were still on hand.