On January 1, 2011, the General Fund contributes $200,000 cash to the Internal Service Fund. On January 1, 2011, the General Fund also loans $100,000 cash to the Internal Service Fund. On January 1, 2011, what journal entry does the Internal Service Fund prepare?

1. Debit Cash $300,000, credit Other Financing Sources $300,000
2. Debit Cash $300,000, credit Other Financing Sources $200,000, credit Advance from General Fund $100,000
3. Debit Cash $300,000, credit Advance from General Fund $300,000
4. Debit Cash $300,000, credit Nonreciprocal Transfer from General Fund $200,000, credit Advance from General Fund $100,000

Answer rating: 100% (QA)

The correct option is 2 Debit Cash 300000 credit Other Financing Sources 200000 credi... View the full answer