Develop a journal entries to record the following transactions of an Internal Service Fund: Paid salaries of
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Question:
Develop a journal entries to record the following transactions of an Internal Service Fund:
- Paid salaries of $10,000. Additional salaries accrued but not paid totaled $300.
- Purchased equipment costing $50,000 by issuing a 3-year, 10%, $45,000 note and making a down payment of $5,000.
- Billed users for services, $100,000; $90,000 was collected during the year; $10,000 is expected to be collected during the second quarter of the next fiscal year.
- Incurred a probable loss from claims and judgments of $25,000. Nothing is expected to be paid for at least two years, however.
- Ordered supplies with an estimated cost of $80,000.
- Received half of the supplies at an actual cost of $41,000. A voucher was prepared and paid.
- Supplies that cost $25,000 were used.
- Depreciation for the year was $16,000 on equipment and $25,000 on buildings.
- The first interest payment on the $45,000 note (item 2) is not due until the end of the first quarter of the next fiscal year. Prepare any required adjusting entry.
- Sold equipment with an original cost of $28,000 for $10,000. Accumulated depreciation on the equipment was $21,000 at the date of the sale.
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