Author Question: The work sheet is not considered a part of the formal accounting records. a. True b. False ... (Read 94 times)

mrsjacobs44 · **on:** Jul 5, 2018

The work sheet is not considered a part of the formal accounting records.
a. True
b. False

Indicate whether the statement is true or false

Question 2

(Journal entries - interfund transactions)

Theodore County uses a General Fund, a Special Revenue Fund, and an Enterprise Fund. The Special Revenue Fund is financed by a grant from the state to provide care for the elderly.

The Enterprise Fund provides bus service both to the public and to government agencies. Prepare entries to record these transactions. Indentify the funds involved in each case.
a. The Enterprise Fund bills the Special Revenue Fund 15,000 for bus service provided to the elderly.
b. The General Fund receives an electricity bill for 20,000 and prepares a voucher to pay the bill. The General Fund then bills the Special Revenue Fund for 3,000, representing the portion of the electricity bill applicable to the senior citizens building.
c. The Enterprise Fund is short of cash to pay its bills. The General Fund lends the Enterprise Fund 50,000 in cash, which will be repaid before the end of the year.
d. The General Fund pays cash of 100,000 to the Enterprise Fund as a subsidy to help meet the operating costs of the Enterprise Fund.

Bigfoot1984 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

True

Answer to Question 2

a. Enterprise fund
Due from Special Revenue Fund 15,000
Revenues - bus services 15,000

Special revenue fund
Expenditures - bus services 15,000
Due to Enterprise Fund 15,000

b. General fund
Expenditures - utilities 20,000
Vouchers payable 20,000

Due from Special Revenue Fund 3,000
Expenditures - utilities 3,000

Special revenue fund
Expenditures - utilities 3,000
Due to General Fund 3,000

c. General fund
Due from Enterprise Fund 50,000
Cash 50,000

Enterprise fund
Cash 50,000
Due to General Fund 50,000

d. General fund
Transfer out to Enterprise Fund 100,000
Cash 100,000

Enterprise fund
Cash 100,000
Transfer in from General Fund 100,000