Question

The city of Morristown operates a printing shop through an Internal Service Fund to provide printing services for all departments. The Central Printing Fund was established by a contribution of $30,000 from the General Fund on January 1, 20X5, at which time the equipment was purchased. The postclosing trial balance on June 30, 20X8, was as follows:


The following transactions occurred during fiscal year 20X9:
1. The publicity bureau, financed by the General Fund, ordered 30,000 multicolor travel brochures printed at a cost of $1.20 each. The brochures were delivered.
2. Supplies were purchased on account for $13,000.
3. Employee salaries were $30,000. One-sixth of this amount was withheld for taxes and is to be paid to the city’s Tax Fund; the employees were paid.
4. Taxes withheld were remitted to the Tax Fund.
5. Utility charges for the year, billed by the Enterprise Fund, were $2,200.
6. Supplies used during the year cost $10,050.
7. Other billings during the period were Electric Enterprise Fund, $300; Special Revenue Fund, $4,750.
8. The inventory of supplies at year end was $5,900.
9. Collections from other funds on account during the year ended June 30, 20X9, were General Fund, $35,000; Special Revenue Fund, $4,000; and Enterprise Fund, $300.
10. Printing press number 3 was repaired by the central repair shop, operated from the Maintenance Fund. A statement for $75 was received but has not been paid.
11. The accounts receivable at June 30, 20X8, were collected in full.
12. Printing shop accounts payable of $14,950 were paid.
13. Depreciation expense was recorded, $2,500.

Required
a. Journalize all transactions and adjustments required in the Central Printing Fund accounts.
b. Prepare closing entries for the Central Printing Fund accounts as of June 30, 20X9.
c. Prepare a postclosing trial balance for the Central Printing Fund as of June 30, 20X9.
d. Prepare a schedule computing the amounts to be reported for each of the three net position components in the statement of net position at June 30,20X9.


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  • CreatedOctober 25, 2014
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