7-20. Human Resource Internal Service Fund. (LO7-2) The City of Townsend's city council authorized the establishment of an internal service fund to provide human resource services to city departments. The following transactions took place in the inaugural month of Townsend's Human Resource internal service fund: A. The General Fund transferred $100,000 to cover initial expenses. The transfer is not expected to be repaid. B. The Human Resources Fund entered into a two-year computer lease with an initial $5,000 payment. The present value of the remaining payments is $82,218. C. Salaries and wages paid to employees totaled $15,000. D. Office supplies were purchased on account for $2,500. E. Billings totaling $3,000 were received from the enterprise fund for utility charges. F. Billings to other departments for services provided to them were as follows: General Fund Special Revenue Fund $16,000 4,700 H. Closing entries were prepared. Required Prepare journal entries to record all of the transactions for this period in the Human Resource Fund accounts and in the governmental activities accounts. Assume all expenses at the government-wide level are charged to the General Government function.

7-20. Human Resource Internal Service Fund. (LO7-2) The City of Townsend's city council authorized the establishment of an internal service fund to provide human resource services to city departments. The following transactions took place in the inaugural month of Townsend's Human Resource internal service fund: A. The General Fund transferred $100,000 to cover initial expenses. The transfer is not expected to be repaid. B. The Human Resources Fund entered into a two-year computer lease with an initial $5,000 payment. The present value of the remaining payments is $82,218. C. Salaries and wages paid to employees totaled $15,000. D. Office supplies were purchased on account for $2,500. E. Billings totaling $3,000 were received from the enterprise fund for utility charges. F. Billings to other departments for services provided to them were as follows: General Fund Special Revenue Fund $16,000 4,700 H. Closing entries were prepared. Required Prepare journal entries to record all of the transactions for this period in the Human Resource Fund accounts and in the governmental activities accounts. Assume all expenses at the government-wide level are charged to the General Government function.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Fulbright County constructed a library in one of the county's high-growth areas. The construction was funded by a number of sources. Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within the current fiscal year. The county operates on a calendar-year basis. Required Prepare a journal entry for capital projects fund and governmental activities at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Fund/ Governmental Activities General Journal 1. The county issued $6,700,000 of 6 percent bonds at par. Proceeds from the bonds were to be used for construction of the library. 1 Capital Projects Fund Transaction. 2. A $720,000 federal grant was received to help finance construction of the library. 2 Capital Projects Fund 3. The Library Special Revenue Fund transferred $320,000 for use in construction of the library.…
Bay City uses the purchases method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purchased $600,000 of supplies for use by activities accounted for in the general fund. The city used $400,000 of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of its fund financial statements, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be A.) Expenditures $600,000; Supplies inventory $200,000. B.) Expenditures $600,000; Supplies inventory $0. C.) Expenditures $400,000; Supplies inventory $200,000. D.) Expenditures $400,000; Supplies inventory $0.
City X purchased $6,000 of new computers during the year from the general fund. Which of the following statements is correct about how this would be recorded? The fixed assets in the government wide financial statements would not increase. The fixed asset accounts in the government wide financial statements would increase $6,000 There are no long term fixed assets in governmental accounting. O The fixed asset accounts in the governmental fund statements would increase $6,000
shak City creates a new internal service fund. To get the internal service fund started, the City's general fund loans $100,000 to the newly created internal service fund. What journal entry will be recorded in the general fund as a result of the transaction? None of these Debit cash $100,000; credit due to internal service fund $100,000 Debit due from internal service fund $100,000; credit cash $100,000 Debit transfers in/out $100,000; credit cash $100,000 Debit cash $100,000; credit transfers in/out $100,000
Bilberry County voted to establish an internal service fund to account for printing and copying for all its departments and agencies. The county engaged in the following activities related to the new fund. REQUIRED: Prepare journal entries to record these events in the internal service fund. If no entry is required, write “No entry required.” a)The county commission voted to transfer $300,000 from the general fund to the internal service fund to establish the new fund. b)Entered into a capital lease for equipment to be used in printing activities. The total present value of the lease obligation is $600,000. c)Issued $2 million in general obligation bonds at 101. The bonds were issued to acquire additional equipment and are to be serviced from the internal service fund. d)Purchased equipment for $1,950,000. The equipment has an estimated useful life of nine years and an estimated salvage value of $150,000. e)Billed the general fund for copying and printing charges, $70,000.…
This year Southfork began work on a senior center to hold activities for its growing senior citizen population. It is to be financed by a $5,000,000 bond issue, a $500,000 grant, and a $500,000 General Fund transfer. The following transactions occurred during the current year: The General Fund transferred $500,000 to the Senior Center Capital Projects Fund. A plot of land was purchased for $400,000 in cash. (This cost had not been encumbered.) Preliminary planning and engineering costs of $95,000 were vouchered. (This cost had not been encumbered.) A contract was signed with Sunset Construction Company for the major part of the project on a bid of $4,950,000. The $5,000,000 bonds were issued at par. Temporary investments were purchased at a cost of $3,500,000. A payable was recorded for a $49,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new building. (This cost had not been encumbered.) An invoice in the amount of $1,500,000 was…
The City of Wolfe issues its financial statements for Year 4 (assume that the city uses a calendar year). The city’s general fund is composed of two functions: (1) education and (2) parks. The city also utilizes capital projects funds for ongoing construction and an enterprise fund to account for an art museum. The city also has one discretely presented component unit. The government-wide financial statements indicate the following Year 4 totals. Education had net expenses of $698,000. Parks had net expenses of $113,000. Art museum had net revenues of $59,250. General revenues were $977,750. The overall increase in net position for the city was $226,000. The fund financial statements for Year 4 indicate the following: The general fund had an increase of $47,750 in its fund balance. The capital projects fund had an increase of $45,500 in its fund balance. The enterprise fund had an increase of $90,000 in its net position balance. Officials for the City of…
A City Administration has provided the following information related to their activity to various government funds. Required: - a. Prepare Statement of Revenues, Expenditure and Changes in Fund Balance and b. Prepare Statement of Net Assets/Balance Sheet.
4. City of Atwater wants to prepare closing entries at the end of a fiscal year for budgetary and operating statement control accounts in the general ledger of the General Fund. Following balance are belong to the City. Appropriations, $7,824,000%3; Financing Uses, $2,766,000; Estimated Revenues, $7,798,000; Encumbrances,$0; Expenditures, $5,900,0003; Uses, $2,770,000; Revenues, $8,980,000. Required Show in general journal form the entry needed to close all of the preceding accounts that should be closed as of the end of the fiscal year. Estimated Other Other Financing
A Government University has RO 15000 cash on hand in an appropriated fund. The University signs a purchase order for RO 7000 to purchase new projectors and systems deliverable in three months. The purpose of writing encumbrance in the ledger is:
A city is building a new park. To finance the construction of the park, the city will issue a $1,800,000 bond, and receive a transfer of $200,000 from the general Please record the journal entries for the Capital Project Fund and the Government-Wide financial statements. 1. The city signed a contract with a construction company to construct the park for $2,000.000. 2. The $1.800.000 bonds were issued at par. 3. The construction company billed the city for $2,000,000 upon completion of the project. 4. The park is completed.
Record the appropriate journal entry using encumbrance accounting: 1. Federal grant of $30,000 was received. 2. By the end of the fiscal year, the city earned 80% of the federal grant. The remainder will be earned in the next fiscal year