Problem
On December 31, 2014, prior to preparing closing entries, the Solid Waste Disposal Fund was charged for materials and supplies expense in the amount of $12,000 that had erroneously been charged as an expenditure of the General Fund (see transaction 15 of the General Fund in Chapter 4 of this cumulative problem). You should credit Due to Other Funds.
This is Transaction 15
It was discovered that goods in the amount of $12,000 had been recorded in error as an expenditure against the General Government appropriation of the General Fund. These goods should have been charged to the Solid Waste Disposal Fund, an enterprise fund and a business-type activity at the government-wide level. This item had also been charged as an expense of the General Government function at the government-wide level. An interfund invoice was prepared to reduce expenditures of the General Fund for the $12,000 and recognize an interfund receivable. This item will be recognized later in Chapter 7 of this case as an expense of the Solid Waste Disposal Fund.
Required: Record this reimbursement transaction in the General Fund and governmental activities journals, debiting Due from Other Funds in the General Fund and Internal Receivables from Business-type Activities at the government-wide level.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.