ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ORGANIZATIONS

Olmsted County decides it can save money by doing all printing services in house. The county creates the Olmsted Printing Fund, an internal service fund, for departments and funds within the county, to provide bulk printing services to them. The departments and funds are to pay this fund promptly to minimize its operating cash flow needs. The fund had the attached transactions for the year ending December 31, 20x8. REQUIRED: Prepare general journal entries, in proper form, to record the attached transactions that pertain to the internal service fund. Omit explanations. Use the number of the transaction as the date. Prepare a statement of revenues, expenses, and changes in fund net position, in proper form, for the year ending December 31, 20x8. (2) OLMSTED COUNTY TRANSACTIONS FOR OLMSTED PRINTING FUND FOR YEAR ENDING DECEMBER 31, 20X8 (1)Received a S6,000 loan on January 2 from the county's General Fund to be repaid in four equal annual installments of S1,500, starting December 31,20X8, with interest at a rate of 1% per year on the outstanding balance. The specified purpose of the loan is to allow the Olmsted Printing Fund to purchase equipment for $4,800 and to use the balance of $1,200 to meet operating cash flow needs (2) Purchased printing equipment for $4,800 on January 2 using the cash received in (1) above The equipment has an estimated useful life of 4 years with no residual value at the end of (3) Purchased paper and supplies on credit for S4,500. The printing fund does not inventory (4) Sent invoices to departments in the amount of S65,000 for printing services provided. All that time supplies but expenses them at the time of purchase departments are financed by the county's General Fund (5) Received cash payments of S63,000 for the billings made in (4) above (6) Paid the invoice for supplies purchased in (3) above (7) Paid salaries in the amount of $50,000 to employees of the fund and utility bills in the (8) Repaid the county $1,500 of principal on the loan plus the interest due on the loan at (9) Recorded the annual depreciation on the equipme The county uses straight line amount of $6,000 December 31, 20X8 depreciation for all capital assets