Description
Central Garage Internal Service Fund. 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 was established by a contribution of $300,000 from the General Fund on July 1, 2017, at which time the land and building were acquired. The post-closing trial balance at June 30, 2017, was as follows:
Debits | Credits | |
Cash | $110,000 | |
Due from Other Funds | $9,000 | |
Inventory of Supplies | $90,000 | |
Land | $50,000 | |
Building | $250,000 | |
Allowance for Depreciation--Building | $20,000 | |
Machinery and Equipment | $65,000 | |
Allowance for Depreciation-- Machinery and Equipment | $12,000 | |
Vouchers Payable | $31,000 | |
Net Position--Net Investment in Capital Assets | $333,000 | |
Nets Position--Unrestricted | $178,000 | |
Total | $574,000 | $574,000 |
The following information applies to the fiscal year ended June 30, 2017:
- Supplies were purchased on account for $92,000; the perpetual inventory method is used.
- The cost of supplies used during the year ended June 30, 2017, was $110,000. A physical count taken as of that date showed materials and supplies on hand totaled $72,000 at cost.
- Salaries and wages paid to employees totaled $235,000, including related costs.
- Billings totaling $30,000 were received from the enterprise fund for utility charges. The Central Garage Fund paid $27,000 of the amount owed.
- Depreciation of the building was recorded in the amount of $12,000; depreciation of the machinery and equipment amounted to $8,000.
- Billings to other departments for services provided to them were as follows:
General Fund | $270,000 |
Special Revenue Fund | 127,000 |
- Unpaid interfund receivable balances were as follows:
6/30/16 | 6/30/17 | |
General Fund | $2,500 | $3,000 |
Special Revenue Fund | 6,500 | 9,000 |
- Vouchers payable at June 30, 2017, were $16,000.
- For June 30, 2017, closing entries were prepared for the Central Garage Fund (ignore government-wide closing entry).
Using this information
- Assume all expenses at the government-wide level are charged to the General Government function. Prepare journal entries to record all of the trans- actions for this period in the Central Garage Fund accounts and in the governmental activities accounts.
- Prepare a statement of revenues, expenses, and changes in net position for the Central Garage Fund for the period ended June 30, 2017.
- Prepare a statement of net position for the Central Garage Fund as of June 30, 2017.
- Explain what the Central Garage Fund would need to report at the governmental activities level, and where the information would be reported.
Explanation & Answer
Review
Review
