Interfund Transfers and Transactions During 20X8, the following transfer and transactions between funds took place in the City of Matthew. On March 1. a $12,000 transfer was made from the general fund to establish a building maintenance internal service fund. Matthew uses transfer accounts for this type of transfer. On April 1, the general fund made an $8,000, six-month loan to the building maintenance service fund. On April 15, $2,400 was transferred from the general fund to the debt service fund to pay interest. On May 5, Matthew’s transportation service fund billed the general fund $825 for April services. Required Prepare journal entries for the general fund and the other fund invoked at the time of each transfer or transaction For each transfer or transaction, prepare the appropriate closing entries for the general fund and the other fund involved for the year ended June 30, 20X8.

Question

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Answer 1

Textbook Question

Chapter 18, Problem 18.9E

Interfund Transfers and Transactions
During 20X8, the following transfer and transactions between funds took place in the City of Matthew.

On March 1. a $12,000 transfer was made from the general fund to establish a building maintenance internal service fund. Matthew uses transfer accounts for this type of transfer.
On April 1, the general fund made an $8,000, six-month loan to the building maintenance service fund.
On April 15, $2,400 was transferred from the general fund to the debt service fund to pay interest.
On May 5, Matthew’s transportation service fund billed the general fund $825 for April services.

Required

Prepare journal entries for the general fund and the other fund invoked at the time of each transfer or transaction
For each transfer or transaction, prepare the appropriate closing entries for the general fund and the other fund involved for the year ended June 30, 20X8.

a.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for general fund and other funds for various transfers made during the year.

Explanation of Solution

Journal entries in general fund account for the inter-fund transfers:

Particulars	Amount ($)	Amount ($)
Building maintenance fund	12000
To Cash		12000
(Being transfer made to building maintenance internal service fund)

Loan to building maintenance fund	8000
To cash		8000
(Being loan given to building maintenance fund)

Debt service fund
To cash	2400
(Being transfer to debt service fund for payment of interest)		2400

Expenses	825
To Transportation service fund		825
(Being expenses incurred from transportation service fund)

Transportation service fund	825
To cash		825
(Being transportation service transfer from general fund)

Journal entry in Building maintenance fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	12000
To general fund transfer		12000
(Being transfer from general fund account)

Cash	8000
To due from general fund		8000
(Being loan received from general fund)

Journal entry in debt service fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	2400
To general fund transfer		2400
(Being transfer from general fund account)

Journal entry in internal service fund for the billing made to general fund account:

Particulars	Amount ($)	Amount ($)
Due from general fund	825
To Revenue account		825
(Being income due from general fund account)

b.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for closing general fund and other funds for various transfers made during the year.

Explanation of Solution

Closing entries for general fund account is as follows:

Particulars	Amount ($)	Amount ($)
General fund-unreserved	12000
To building maintenance fund		12000
(Being entry for closing the building maintenance fund)

General fund-unreserved	2400
To debt service fund		2400
(Being entry to close debt service fund)

General fund-unreserved	825
To transportation service fund		825
(Being entry to close transportation service fund)

Closing entry for building maintenance fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	12000
To Net asset		12000
(Being entry to close general fund)

Closing entry for debt service fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	2400
To Fund balance-unreserved		2400
(Being closing entry for general fund balance)

Closing entry for Internal service fund is as follows:

Particulars	Amount ($)	Amount ($)
Revenues	825
To Net assets		825
(Being closing entry for internal service fund)

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Answer 2

Textbook Question

Chapter 18, Problem 18.9E

Interfund Transfers and Transactions
During 20X8, the following transfer and transactions between funds took place in the City of Matthew.

On March 1. a $12,000 transfer was made from the general fund to establish a building maintenance internal service fund. Matthew uses transfer accounts for this type of transfer.
On April 1, the general fund made an $8,000, six-month loan to the building maintenance service fund.
On April 15, $2,400 was transferred from the general fund to the debt service fund to pay interest.
On May 5, Matthew’s transportation service fund billed the general fund $825 for April services.

Required

Prepare journal entries for the general fund and the other fund invoked at the time of each transfer or transaction
For each transfer or transaction, prepare the appropriate closing entries for the general fund and the other fund involved for the year ended June 30, 20X8.

a.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for general fund and other funds for various transfers made during the year.

Explanation of Solution

Journal entries in general fund account for the inter-fund transfers:

Particulars	Amount ($)	Amount ($)
Building maintenance fund	12000
To Cash		12000
(Being transfer made to building maintenance internal service fund)

Loan to building maintenance fund	8000
To cash		8000
(Being loan given to building maintenance fund)

Debt service fund
To cash	2400
(Being transfer to debt service fund for payment of interest)		2400

Expenses	825
To Transportation service fund		825
(Being expenses incurred from transportation service fund)

Transportation service fund	825
To cash		825
(Being transportation service transfer from general fund)

Journal entry in Building maintenance fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	12000
To general fund transfer		12000
(Being transfer from general fund account)

Cash	8000
To due from general fund		8000
(Being loan received from general fund)

Journal entry in debt service fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	2400
To general fund transfer		2400
(Being transfer from general fund account)

Journal entry in internal service fund for the billing made to general fund account:

Particulars	Amount ($)	Amount ($)
Due from general fund	825
To Revenue account		825
(Being income due from general fund account)

b.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for closing general fund and other funds for various transfers made during the year.

Explanation of Solution

Closing entries for general fund account is as follows:

Particulars	Amount ($)	Amount ($)
General fund-unreserved	12000
To building maintenance fund		12000
(Being entry for closing the building maintenance fund)

General fund-unreserved	2400
To debt service fund		2400
(Being entry to close debt service fund)

General fund-unreserved	825
To transportation service fund		825
(Being entry to close transportation service fund)

Closing entry for building maintenance fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	12000
To Net asset		12000
(Being entry to close general fund)

Closing entry for debt service fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	2400
To Fund balance-unreserved		2400
(Being closing entry for general fund balance)

Closing entry for Internal service fund is as follows:

Particulars	Amount ($)	Amount ($)
Revenues	825
To Net assets		825
(Being closing entry for internal service fund)

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Answer 3

Textbook Question

Chapter 18, Problem 18.9E

Interfund Transfers and Transactions
During 20X8, the following transfer and transactions between funds took place in the City of Matthew.

On March 1. a $12,000 transfer was made from the general fund to establish a building maintenance internal service fund. Matthew uses transfer accounts for this type of transfer.
On April 1, the general fund made an $8,000, six-month loan to the building maintenance service fund.
On April 15, $2,400 was transferred from the general fund to the debt service fund to pay interest.
On May 5, Matthew’s transportation service fund billed the general fund $825 for April services.

Required

Prepare journal entries for the general fund and the other fund invoked at the time of each transfer or transaction
For each transfer or transaction, prepare the appropriate closing entries for the general fund and the other fund involved for the year ended June 30, 20X8.

a.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for general fund and other funds for various transfers made during the year.

Explanation of Solution

Journal entries in general fund account for the inter-fund transfers:

Particulars	Amount ($)	Amount ($)
Building maintenance fund	12000
To Cash		12000
(Being transfer made to building maintenance internal service fund)

Loan to building maintenance fund	8000
To cash		8000
(Being loan given to building maintenance fund)

Debt service fund
To cash	2400
(Being transfer to debt service fund for payment of interest)		2400

Expenses	825
To Transportation service fund		825
(Being expenses incurred from transportation service fund)

Transportation service fund	825
To cash		825
(Being transportation service transfer from general fund)

Journal entry in Building maintenance fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	12000
To general fund transfer		12000
(Being transfer from general fund account)

Cash	8000
To due from general fund		8000
(Being loan received from general fund)

Journal entry in debt service fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	2400
To general fund transfer		2400
(Being transfer from general fund account)

Journal entry in internal service fund for the billing made to general fund account:

Particulars	Amount ($)	Amount ($)
Due from general fund	825
To Revenue account		825
(Being income due from general fund account)

b.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for closing general fund and other funds for various transfers made during the year.

Explanation of Solution

Closing entries for general fund account is as follows:

Particulars	Amount ($)	Amount ($)
General fund-unreserved	12000
To building maintenance fund		12000
(Being entry for closing the building maintenance fund)

General fund-unreserved	2400
To debt service fund		2400
(Being entry to close debt service fund)

General fund-unreserved	825
To transportation service fund		825
(Being entry to close transportation service fund)

Closing entry for building maintenance fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	12000
To Net asset		12000
(Being entry to close general fund)

Closing entry for debt service fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	2400
To Fund balance-unreserved		2400
(Being closing entry for general fund balance)

Closing entry for Internal service fund is as follows:

Particulars	Amount ($)	Amount ($)
Revenues	825
To Net assets		825
(Being closing entry for internal service fund)

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Answer 4

Textbook Question

Chapter 18, Problem 18.9E

Interfund Transfers and Transactions
During 20X8, the following transfer and transactions between funds took place in the City of Matthew.

On March 1. a $12,000 transfer was made from the general fund to establish a building maintenance internal service fund. Matthew uses transfer accounts for this type of transfer.
On April 1, the general fund made an $8,000, six-month loan to the building maintenance service fund.
On April 15, $2,400 was transferred from the general fund to the debt service fund to pay interest.
On May 5, Matthew’s transportation service fund billed the general fund $825 for April services.

Required

Prepare journal entries for the general fund and the other fund invoked at the time of each transfer or transaction
For each transfer or transaction, prepare the appropriate closing entries for the general fund and the other fund involved for the year ended June 30, 20X8.

a.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for general fund and other funds for various transfers made during the year.

Explanation of Solution

Journal entries in general fund account for the inter-fund transfers:

Particulars	Amount ($)	Amount ($)
Building maintenance fund	12000
To Cash		12000
(Being transfer made to building maintenance internal service fund)

Loan to building maintenance fund	8000
To cash		8000
(Being loan given to building maintenance fund)

Debt service fund
To cash	2400
(Being transfer to debt service fund for payment of interest)		2400

Expenses	825
To Transportation service fund		825
(Being expenses incurred from transportation service fund)

Transportation service fund	825
To cash		825
(Being transportation service transfer from general fund)

Journal entry in Building maintenance fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	12000
To general fund transfer		12000
(Being transfer from general fund account)

Cash	8000
To due from general fund		8000
(Being loan received from general fund)

Journal entry in debt service fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	2400
To general fund transfer		2400
(Being transfer from general fund account)

Journal entry in internal service fund for the billing made to general fund account:

Particulars	Amount ($)	Amount ($)
Due from general fund	825
To Revenue account		825
(Being income due from general fund account)

b.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for closing general fund and other funds for various transfers made during the year.

Explanation of Solution

Closing entries for general fund account is as follows:

Particulars	Amount ($)	Amount ($)
General fund-unreserved	12000
To building maintenance fund		12000
(Being entry for closing the building maintenance fund)

General fund-unreserved	2400
To debt service fund		2400
(Being entry to close debt service fund)

General fund-unreserved	825
To transportation service fund		825
(Being entry to close transportation service fund)

Closing entry for building maintenance fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	12000
To Net asset		12000
(Being entry to close general fund)

Closing entry for debt service fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	2400
To Fund balance-unreserved		2400
(Being closing entry for general fund balance)

Closing entry for Internal service fund is as follows:

Particulars	Amount ($)	Amount ($)
Revenues	825
To Net assets		825
(Being closing entry for internal service fund)

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

a.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for general fund and other funds for various transfers made during the year.

Explanation of Solution

Journal entries in general fund account for the inter-fund transfers:

Particulars	Amount ($)	Amount ($)
Building maintenance fund	12000
To Cash		12000
(Being transfer made to building maintenance internal service fund)

Loan to building maintenance fund	8000
To cash		8000
(Being loan given to building maintenance fund)

Debt service fund
To cash	2400
(Being transfer to debt service fund for payment of interest)		2400

Expenses	825
To Transportation service fund		825
(Being expenses incurred from transportation service fund)

Transportation service fund	825
To cash		825
(Being transportation service transfer from general fund)

Journal entry in Building maintenance fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	12000
To general fund transfer		12000
(Being transfer from general fund account)

Cash	8000
To due from general fund		8000
(Being loan received from general fund)

Journal entry in debt service fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	2400
To general fund transfer		2400
(Being transfer from general fund account)

Journal entry in internal service fund for the billing made to general fund account:

Particulars	Amount ($)	Amount ($)
Due from general fund	825
To Revenue account		825
(Being income due from general fund account)

b.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for closing general fund and other funds for various transfers made during the year.

Explanation of Solution

Closing entries for general fund account is as follows:

Particulars	Amount ($)	Amount ($)
General fund-unreserved	12000
To building maintenance fund		12000
(Being entry for closing the building maintenance fund)

General fund-unreserved	2400
To debt service fund		2400
(Being entry to close debt service fund)

General fund-unreserved	825
To transportation service fund		825
(Being entry to close transportation service fund)

Closing entry for building maintenance fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	12000
To Net asset		12000
(Being entry to close general fund)

Closing entry for debt service fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	2400
To Fund balance-unreserved		2400
(Being closing entry for general fund balance)

Closing entry for Internal service fund is as follows:

Particulars	Amount ($)	Amount ($)
Revenues	825
To Net assets		825
(Being closing entry for internal service fund)

Answer 8

a.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for general fund and other funds for various transfers made during the year.

Explanation of Solution

Journal entries in general fund account for the inter-fund transfers:

Particulars	Amount ($)	Amount ($)
Building maintenance fund	12000
To Cash		12000
(Being transfer made to building maintenance internal service fund)

Loan to building maintenance fund	8000
To cash		8000
(Being loan given to building maintenance fund)

Debt service fund
To cash	2400
(Being transfer to debt service fund for payment of interest)		2400

Expenses	825
To Transportation service fund		825
(Being expenses incurred from transportation service fund)

Transportation service fund	825
To cash		825
(Being transportation service transfer from general fund)

Journal entry in Building maintenance fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	12000
To general fund transfer		12000
(Being transfer from general fund account)

Cash	8000
To due from general fund		8000
(Being loan received from general fund)

Journal entry in debt service fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	2400
To general fund transfer		2400
(Being transfer from general fund account)

Journal entry in internal service fund for the billing made to general fund account:

Particulars	Amount ($)	Amount ($)
Due from general fund	825
To Revenue account		825
(Being income due from general fund account)

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for general fund and other funds for various transfers made during the year.

Answer 13

Explanation of Solution

Journal entries in general fund account for the inter-fund transfers:

Particulars	Amount ($)	Amount ($)
Building maintenance fund	12000
To Cash		12000
(Being transfer made to building maintenance internal service fund)

Loan to building maintenance fund	8000
To cash		8000
(Being loan given to building maintenance fund)

Debt service fund
To cash	2400
(Being transfer to debt service fund for payment of interest)		2400

Expenses	825
To Transportation service fund		825
(Being expenses incurred from transportation service fund)

Transportation service fund	825
To cash		825
(Being transportation service transfer from general fund)

Journal entry in Building maintenance fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	12000
To general fund transfer		12000
(Being transfer from general fund account)

Cash	8000
To due from general fund		8000
(Being loan received from general fund)

Journal entry in debt service fund for the transfers made from general fund:

Particulars	Amount ($)	Amount ($)
Cash	2400
To general fund transfer		2400
(Being transfer from general fund account)

Journal entry in internal service fund for the billing made to general fund account:

Particulars	Amount ($)	Amount ($)
Due from general fund	825
To Revenue account		825
(Being income due from general fund account)

Answer 14

b.

Expert Solution

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for closing general fund and other funds for various transfers made during the year.

Explanation of Solution

Closing entries for general fund account is as follows:

Particulars	Amount ($)	Amount ($)
General fund-unreserved	12000
To building maintenance fund		12000
(Being entry for closing the building maintenance fund)

General fund-unreserved	2400
To debt service fund		2400
(Being entry to close debt service fund)

General fund-unreserved	825
To transportation service fund		825
(Being entry to close transportation service fund)

Closing entry for building maintenance fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	12000
To Net asset		12000
(Being entry to close general fund)

Closing entry for debt service fund is as follows:

Particulars	Amount ($)	Amount ($)
General fund transfer	2400
To Fund balance-unreserved		2400
(Being closing entry for general fund balance)

Closing entry for Internal service fund is as follows:

Particulars	Amount ($)	Amount ($)
Revenues	825
To Net assets		825
(Being closing entry for internal service fund)

Answer 15

b.

Expert Solution

Answer 16

b.

Expert Solution

Answer 17

Expert Solution

Answer 18

To determine

Introduction: Inter-fund transfer are made to fulfill the requirements of the specific fund and are closed at the end of the year. These funds are transferred from general fund account.General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

The journal entries for closing general fund and other funds for various transfers made during the year.

Answer 19

Explanation of Solution

Closing entries for general fund account is as follows:

Particulars	Amount ($)	Amount ($)
General fund-unreserved	12000
To building maintenance fund		12000
(Being entry for closing the building maintenance fund)

General fund-unreserved	2400
To debt service fund		2400
(Being entry to close debt service fund)

General fund-unreserved	825
To transportation service fund		825
(Being entry to close transportation service fund)