The City of Southern Pines maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. As such, the City’s internal service fund, a motor pool fund, is included in the proprietary funds statements.Balance sheet asset accounts include: Cash, $87,000; Investments, $127,900; Due from the General Fund, $15,300; Inventories, $331,500; and Capital Assets (net), $979,200. Liability accounts include: Accounts Payable, $51,000; Long-Term Advance from Enterprise Fund, $612,000.The only transaction in the internal service fund that is external to the government is interest revenue in the amount of $2,900.Exclusive of the interest revenue, the internal service fund reported net income in the amount of $39,000. An examination of the records indicates that services were provided as follows: one-third to general government, one-third to public safety, and one-third to public works.Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities.

Journal entry is the first stage of accounting process.Journal entry used to record business…

Answered: The City of Southern Pines maintains…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The City of Southern Pines maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. As such, the City’s internal service fund, a motor pool fund, is included in the proprietary funds statements.

Balance sheet asset accounts include: Cash, $87,000; Investments, $127,900; Due from the General Fund, $15,300; Inventories, $331,500; and Capital Assets (net), $979,200. Liability accounts include: Accounts Payable, $51,000; Long-Term Advance from Enterprise Fund, $612,000.
The only transaction in the internal service fund that is external to the government is interest revenue in the amount of $2,900.
Exclusive of the interest revenue, the internal service fund reported net income in the amount of $39,000. An examination of the records indicates that services were provided as follows: one-third to general government, one-third to public safety, and one-third to public works.

Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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