Below are the accounts balances for the Stores Fund of the City of Arlington as of...

   

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Below are the accounts balances for the Stores Fund of the City of Arlington as of January 1, 2020: Cash Due from other funds Inventory of supplies Land Buildings Accumulated depreciation buildings Equipment Accumulated depreciation equipment Accounts payable Advance from water utility fund Net position Totals Debits $32,000 27,000 27,500 18,000 80,000 46,000 $230,500 Credits $28,000 25,000 19,000 30,000 128,500 $230,500 Required: a. Open a general journal for the City of Arlington Stores Fund and record the following transactions. (1) A budget was prepared for FY 2020. It was estimated that the price charged other departments for supplies should be 1.25% of cost to achieve the desired breakeven for the year. (2) The amount due from other funds as of January 1, 2020, was collected in full. (3) During the year, supplies were ordered and received in the amount of $312,000. This amount was posted to accounts payable. (4) $15,000 of the advance from the Water Utility Fund, originally provided for construction, was repaid. No interest is charged. (5) During the year, supplies costing $250,560 were issued to the General Fund, and supplies costing $46,400 were issued to the Water Utility Fund. These funds were charged based on the previously determined markup (S 313,200 to General Fund and 58,000 to the Water Utility Fund). (6) Operating expenses, exclusive of depreciation, were recorded in accounts payable as follows: Purchasing. $16,200; Warehousing, $16,900; Delivery, $17,500: and Administrative, $8,000. (7) Cash was received from the General Fund in the amount of $310,000 and from the Water Utility Fund in the amount of $50,000. (8) Accounts payable were paid in the amount of $367,500. (9) Depreciation in the amount of $8,400 was recorded for buildings and $6,200 for equipment. b. Prepare and post an entry closing all nominal accounts to Net position. Compute the balance in the net position accounts, assuming there are no Restricted Net position. c. Discussion Board Discuss the differences between the fund balance and net position. Below are the accounts balances for the Stores Fund of the City of Arlington as of January 1, 2020: Cash Due from other funds Inventory of supplies Land Buildings Accumulated depreciation buildings Equipment Accumulated depreciation equipment Accounts payable Advance from water utility fund Net position Totals Debits $32,000 27,000 27,500 18,000 80,000 46,000 $230,500 Credits $28,000 25,000 19,000 30,000 128,500 $230,500 Required: a. Open a general journal for the City of Arlington Stores Fund and record the following transactions. (1) A budget was prepared for FY 2020. It was estimated that the price charged other departments for supplies should be 1.25% of cost to achieve the desired breakeven for the year. (2) The amount due from other funds as of January 1, 2020, was collected in full. (3) During the year, supplies were ordered and received in the amount of $312,000. This amount was posted to accounts payable. (4) $15,000 of the advance from the Water Utility Fund, originally provided for construction, was repaid. No interest is charged. (5) During the year, supplies costing $250,560 were issued to the General Fund, and supplies costing $46,400 were issued to the Water Utility Fund. These funds were charged based on the previously determined markup (S 313,200 to General Fund and 58,000 to the Water Utility Fund). (6) Operating expenses, exclusive of depreciation, were recorded in accounts payable as follows: Purchasing. $16,200; Warehousing, $16,900; Delivery, $17,500: and Administrative, $8,000. (7) Cash was received from the General Fund in the amount of $310,000 and from the Water Utility Fund in the amount of $50,000. (8) Accounts payable were paid in the amount of $367,500. (9) Depreciation in the amount of $8,400 was recorded for buildings and $6,200 for equipment. b. Prepare and post an entry closing all nominal accounts to Net position. Compute the balance in the net position accounts, assuming there are no Restricted Net position. c. Discussion Board Discuss the differences between the fund balance and net position.

Answer rating: 100% (QA)

Here are the journal entries for the City of Arlington Stores Fund Journal Entries Date Account Debit Credit Description 112020 Budget 1250 1250 Budge... View the full answer