Assignment
Case Study: Internal Service Fund
The City of Granville operates an internal service fund to provide garage space and repairs for city-owned and operated vehicles. The Garage Fund's preclosing trial balance for the current fiscal year is as follows.
Debits Credits
Cash $ 140,000
Due from Other Funds 18,000
Inventory of Supplies 120,000
Land 60,000
Building 290,000
Allowance for Depreciation-Building $ 40,000
Machinery and Equipment 75,000
Allowance for Depreciation-Machinery
And Equipment 15,000
Vouchers Payable 36,000
Net Position-Net Investment in Capital
Assets 347,000
Net Position-Unrestricted 265,000
$ 703,000 $ 703,000
The following information has not been reflected in the preclosing figures above, applies to the current year.
o Supplies were purchased on account for $98,000; the perpetual inventory method is used.
o The cost of supplies used during the year was $130,000. A physical count taken as of that date showed materials and supplies on hand totaled $88,000 at cost.
o Salaries and wages paid to employees totaled $245,000; including related costs.
o Billings totaled $36,000 were received from the city enterprise fund for utility charges. The Central Garage Fund paid $31,000 of the amount owed. (At the governmental level, record the payable amount as Internal Balances).
o Depreciation on the building was $12,000; depreciation on the machinery and equipment was $10,000.
o Billings to other departments for services provided to them were as follows.
General Fund $310,000
Special Revenue Fund 137,000
o Unpaid interfund receivable balances were as follows.
6/30/20X0 6/30/20X1
General Fund $ 14,000 $ 11,000
Special Revenue Fund 4,000 6,500
o Vouchers Payable at year-end were $21,000.
o Closing entries were prepared for the Central Garage Fund. (Do not prepare government-wide closing entries.)
Task
o Prepare journal entries to record all of the transactions for this period in the Central Garage Fund accounts and in the governmental activities accounts. Assume all expenses at the government-wide level are charged to the General Government function.
o Prepare a statement of revenues, expenses, and changes in fund net position for the Central Garage Fund for the period.
o Prepare a statement of net position for the Central Garage Fund as of year-end.
Format your assignment according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.