Question: The city of Morristown operates a printing shop through an

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.

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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