6–13. Jefferson County operates a centralized motor pool to service county vehic
ID: 2556573 • Letter: 6
Question
6–13.
Jefferson County operates a centralized motor pool to service county vehicles. At the end of 2016, the Motor Pool Internal Service Fund had the following account balances:
Total
$63,500
$63,500
The following events took place during 2017:
Additional supplies were purchased on account in the amount of $38,000.
Services provided to other departments on account totaled $98,000. A total of $68,000 was for departments in the General Fund and $30,000 for enterprise fund departments.
Supplies used amounted to $36,700.
Payments made on accounts payable amounted to $38,800.
Cash collected from the General Fund totaled $62,000, and cash collected from the enterprise fund totaled $30,000.
Salaries were paid in the amount of $48,700. Included in this amount is the accrued wages payable at the end of 2016. All of these are determined to be part of the cost of services provided.
In a previous year, the enterprise fund loaned the motor pool money under an advance for the purpose of purchasing garage equipment. In the current year, the motor pool repaid the enterprise fund $8,000 of this amount.
On July 1, 2017, the Motor Pool Fund borrowed $12,000 from the bank, signing a 12 percent note that is due in two years with annual interest payments on June 30. The borrowings are not related to capital asset purchases but were made to provide working capital.
Additional information includes:
Depreciation for the year amounted to $6,900.
The payment of interest on the note is payable on June 30, 2018.
Unpaid wages relating to the final week of the year totaled $770.
Page 179Using the Excel template provided (a separate tab is provided for each of the requirements):
Prepare journal entries and post entries to the T-accounts.
Prepare closing entries.
Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
Prepare a Statement of Net Position.
Prepare a Statement of Cash Flows for the year.
Debits Credits Due from General Fund $ 6,500 Cash 18,000 Capital assets 35,000 Supplies inventory 4,000 Accounts payable $ 5,500 Accrued wages payable 300 Accumulated depreciation 6,500 Advance from enterprise fund 25,000 Net position 26,200Total
$63,500
$63,500
Explanation / Answer
Jefferson County Date General Journal Debit credit 1) Supplies $38,000 Accounts Payable $38,000 2) Due from other fund $98,000 Operating revenues: charges for services $98,000 3) Operating Expenses: cost of services $36,700 Supplies $36,700 4) Accounts Payable $38,800 Cash $38,800 5) Cash ($62000 + $30000) $92,000 Due from other fund $92,000 6) Operating Expenses: cost of services $48,400 Wages Payable $300 Cash $48,700 7) Advance from enterprise fund $8,000 Cash $8,000 8) Cash $12,000 Bank Note Payable $12,000 9) Operating Expenses - depreciation $6,900 Accumulated Depreciation $6,900 10) Non operating Expenses - Interest $1,440 Interest Payable($12,000 x 12% ) $1,440 11) Operating Expenses: cost of services $770 Wages Payable $770
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