Author Question: A government plans to create an Internal Service Fund to account for its new central warehouse. The ... (Read 31 times)

burchfield96 · **on:** Jul 5, 2018

A government plans to create an Internal Service Fund to account for its new central warehouse. The General Fund loans the Internal Service Fund 100,000, which is going to pay back the loan interest-free in five years.

The entry in the Internal Service Fund to record this transaction would be

Debit Credit
A. Cash
Revenue 100,000
100,000
B. Cash
Capital Contribution 100,000
100,000
C. Cash
Transfer from General Fund 100,000
100,000
D. Cash
Advance from General Fund 100,000
100,000

Question 2

The statement of owner's equity shows the state of the business on a specific date.
a. True
b. False
Indicate whether the statement is true or false