Question

The City of Ashville operates an internal service fund to provide garage space and repairs for all city-owned-and-operated vehicles. The Central Garage Fund’s preclosing trial balance for the current fiscal year is as follows:

	Debits				Credits
Cash	$	121,100
Due from Other Funds		10,200
Inventory of Supplies		99,000
Land		54,500
Building		275,500
Allowance for Depreciation—Building					$	22,100
Machinery and Equipment		71,900
Allowance for Depreciation—Machinery and Equipment						13,200
Vouchers Payable						34,000
Net Position—Net Investment in Capital Assets						366,600
Net Position—Unrestricted						196,300
	$	632,200			$	632,200

The following information, not yet reflected in the preclosing figures above, applies to the current fiscal year:

1. Supplies were purchased on account for $101,300; the perpetual inventory method is used.
2. The cost of supplies used during the year was $121,100. A physical count taken as of that date showed materials and supplies on hand totaled $79,200 at cost.
3. Salaries and wages paid to employees totaled $258,400, including related costs.
4. Billings totaling $33,000 were received from the enterprise fund for utility charges. The Central Garage Fund paid $29,700 of the amount owed. (At the government-wide level, record the payable amount as Internal Balances.)
5. Depreciation of the building was recorded in the amount of $10,900; depreciation of the machinery and equipment amounted to $9,900.
6. Billings to other departments for services provided to them were as follows:

General Fund	$	297,000
Special Revenue Fund		139,600

7. Unpaid interfund receivable balances were as follows:

	Beginning of Year				End of Year
General Fund	$	2,800			$	3,300
Special Revenue Fund		7,400				10,200

8. Vouchers payable at year-end were $17,500.

9. Closing entries were prepared for the Central Garage Fund (ignore government-wide closing entry).

3. Prepare a statement of net position for the Central Garage Fund as of year-end.

Answer 1

City of Ashville Journal Enteries EventParticulars Debit in $ Credit in $ Internal Service Fund & Governmental Activities: 1 Inventory of Supplies a/c Dr. 101300 To Vouchers payable 101300 Internal Service Fund: 2 Cost of supplies issued a/c Dr 121100 To Inventory of Supplies 121100 Governmental Activities: Expenses - General Government a/c Dr 121100 To Inventory of Supplies 121100 Internal Service Fund: 3 Salaries and wages expens a/c Dr. 258400 To Cash 258400 Governmental Activities: Expenses - General Government a/c Dr 258400 To Cash 258400 Internal Service Fund: 4Utilities Expense a/c Dr. 33000 To Due to Other Funds To Cash 3300 29700 Governmental Activities: Expenses - General Government a/c Dr 33000 To Internal Balances To Cash 3300 29700

EventParticulars Debit in $ Credit in $ Internal Service Fund: 5 Depreciation Expense - Building a/c Dr 10900 Depreciation Expense Mach & Equipa/c Dr 9900 To Allowance fro Depre Build To Allowance fro Depre Mach & Equi 10900 9900 Governmental Activities: Expenses - General Government a/c Dr 20800 To Allowance fro Depre Build To Allowance fro Depre Mach & Equi 10900 9900 Internal Service Fund: 6 Dues from Other Funds a/c Dr. 436600 To Billings to Departments 436600 297000 139600) Internal Service Fund: 7Cash a/c Dr 433300 To Dues from Other Funds 433300 $10,200+ $436,600 $13,500 $433,300 Governmental Activities: No entry necessary since the cash exchange was between overnmental funds and the internal service fund Internal Service Fund & Governmental Activities: 8 Vouchers payable a/c Dr. 117800 To Cash 117800 ($34,000 $101,300 - $17,500 $117,800 Internal Service Fund: Closing Entries: Billings to Departments a/c 9 Dr 436600 To Cost of Supplies issued To Salaries ands wages expense To Utilities expense To Depreciation Expense Buildin To Depreciation Expense Mach & Equi To Excess of net billings over costs 121100 258400 33000 10900 9900 3300 Excess of net billings over costs a/c Dr 3300 To Net Position Unrestricted 3300 Net Position - Net Investments in Capital assets a/c D20800 To Net Position Unrestricted (10900 +9900)

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION For the Year ended June 30. Billings to Departments Operating Expenses: Cost of Supplies issued Salaries ands wages expense Utilities expense Depreciation Expense Building Depreciation Expense Mach & Equip Total Operating Expenses Operating Income Net Position July 1 previous year Net Position June 30 current year 436600 121100 258400 33000 10900 9900 433300 3300 562900 566200 366600+196300 562900 STATEMENT OF NET POSITION As at June 30 Current Year Assets Current Assets Cash Dues from Other Funds Inventory of Supplies Total Current Assets Capital Assets Land Building Less:Allowance fro Depre Build Machinery & Equipment Less:Allowance fro Depre - Mach & Equip Total Capital Assets Total Assets 148500 13500 79200 241200 54500 275500 33000 242500 71900 23100 48800 345800 587000 Liabilities: Vouchers Payable Due to Other Funds Total Current Liabilities 17500 3300 20800 Net Position: Net Investment in Capital Assets Unrestricted Total Net Position 345800 220400 566200