6C. Part 1. Internal Service Fund Transactions The Stores and Service Fund of the City of Monroe had the following account balances as of January 1, 2020:

Cash	$	32,000
Due from Other Funds		27,000
Materials and Supplies		27,500
Land		18,000
Buildings		80,000
Accumulated DepreciationBuildings				$	28,000
Equipment		46,000
Accumulated DepreciationEquipment					25,000
Accounts Payable					19,000
Advance from Water Utility Fund					30,000
Net Position					128,500
Totals	$	230,500		$	230,500

Required:

a. Record the following transactions in the general journal of the City of Monroe Stores and Service Fund.

(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 $46,400 were issued to the Water Utility Fund. These funds were charged based on the previously determined markup ($ 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. Post the entries to the Stores and Service Fund ledger (t-accounts).

c. 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.

Journal Entry Worksheet

1. Record the price charged other departments for supplies should be 1.25% of cost to achieve the desired breakeven for the year.

2. Record the amount due from other funds as of January 1, 2020, was collected in full.

3. Record the during the year, supplies were ordered and received in the amount of $312,000. This amount was posted to accounts payable.

4. Record the $15,000 of the advance from the Water Utility Fund, originally provided for construction, was repaid. No interest is charged.

5a. Record the internal sale of the supplies throughout the year in the amount of $250,560 to the General Fund, and $46,400 issued to the Water Utility Fund.

5b. Record the entry to show the previously determined markup ($313,200 to General Fund and $58,000 to the Water Utility Fund).

6. Record the entry to show the 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. Record the entry to show the 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. Record the entry to show the accounts payable were paid in the amount of $367,500.

9. Record the entry to show the depreciation in the amount of $8,400 was recorded for buildings and $6,200 for equipment.

CI. Record the closing entries to determine the net position.

Post Entries to the Stores and Service Fund ledger (T-accounts).

Cash

Material and Supplies

Due from Other Funds

Land

Buildings

Accumulated Depreciation - Buildings

Equipment

Accumulated Depreciation - Equipment

Accounts Payable

Advance from Water Utility Fund

Net Position (beginning)

Operating Revenue - Charges for Sales & Services

Operating Expenses Cost of Sales & Services

Operating Expenses Administration

Operating Expenses Depreciation

Net Position and Preclosing Amount