The City of Southern Pines maintains its books so as to prepare fund accounting statements...
90.2K
Verified Solution
Link Copied!
Question
Accounting
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 Citys internal service fund, a motor pool fund, is included in the proprietary funds statements.
Balance sheet asset accounts include: Cash, $92,000; Investments, $135,400; Due from the General Fund, $16,300; Inventories, $353,000; and Capital Assets (net), $1,042,700. Liability accounts include: Accounts Payable, $54,500; Long-Term Advance from Enterprise Fund, $654,000.
The only transaction in the internal service fund that is external to the government is interest revenue in the amount of $3,400.
Exclusive of the interest revenue, the internal service fund reported net income in the amount of $54,000. 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.
Required: Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
