Interfund and interactivity


Interfund and Interactivity Transactions. The following transactions affected various funds and activities of the Town of Big Springs.
1. The Fire Department, a governmental activity, purchased $100,000 of water from the Water Utility Fund, a business-type activity.
2. The Big Springs Golf Course, an enterprise fund, reimbursed the General Fund $500 for office supplies that the General Fund had purchased on its behalf and that were used in the course of the fiscal year.
3. The General Fund made a long-term loan in the amount of $50,000 to the Central Stores Fund, an internal service fund that services town departments.
4. The General Fund paid its annual contribution of $100,000 to the debt service fund for interest and principal on general obligation bonds due during the year.
5. The $5,000 balance in the capital projects fund at the completion of construction of a new Town Hall was transferred to the General Fund.

Required
a. Make the required journal entries in the general journal of the General Fund and any other fund(s) affected by the interfund transactions described. Also make entries in the governmental activities journal for any transaction(s) affecting a governmental fund. Do not make entries in the subsidiary ledgers.

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Accounting Basics: Interfund and interactivity
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