$6-$C$.$ Part $1.$ Internal Service Fund Transactions

The Stores and Service Fund of the City of Monroe is responsible for purchasing office supplies for the Water and Sewer

Department as well as departments within the General Fund. Office supplies are ordered In bulk, to take advantage of

favorable pricing. Office supplies are then issued $($sold$)$ to departments at a markup intended to assure the Stores and

Services Fund approximately breaks even. The fund had the following account balances as of January $1,2024$:

Requlred:

a$.$ Record the following transactions.

In preparing for the FY $2024,$ the government desires the Stores and Services Fund revenues to approximately equal

expenses. It was estimated that the price charged other departments for supplies should be $1\mathrm{.}25\%$ of cost to achleve

the desired breakeven for the year.

The amount due from other funds as of January $1,2024,$ was collected in full.

During the year, supplies were ordered and recelved in the amount of $$312,000.$ This amount was posted to accounts

payable.

$$15,000$ of the advance from the Water Utility Fund, $($origlnally provided for equipment$),$ was repald. No Interest Is

charged.

During the year, supplies with a cost of $$250,560$ were Issued $($sold$)$ to the General Fund, and supplies costing

$$46,400$ were issued to the Water Utility Fund. These funds were Involced based on the previously determined

markup $($ $$313,200$ to General Fund and $$58,000$ to the Water Utility Fund$)$

Note: The Stores and Services Fund reports expenses wlthin $3$ categorles;

Cost of sales and services

Administration

Depreciation

Operating expenses, exclusive of depreclation, were recorded in accounts payable as follows: Cost of Sales and

Services $$45,500$ and Administration, $$18,500.$

Cash was recelved from the General Fund In the amount of $$310,000$ and from the Water Utility Fund In the amount of

$$50,000.$

Accounts payable were pald in the amount of $$367,000.$

Depreciation in the amount of $$4,300$ was recorded for bulldings and $$5,800$ for equipment.

b$.$ Post the entrles to the Stores and Service Fund ledger $(t-$accounts$).$

c$.$ Prepare an entry closing all nominal accounts to Net position. Compute the balance in the net position accounts,

assuming there are no Restricted Net pos$/$tion$.$