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Chapter 6- Proprietary Funds 6-C. Part 1. Internal Service Fund Transactions The Stores and Service Fund of the City of Monroe had the following account

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Chapter 6- Proprietary Funds 6-C. 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, 2015: Debits Credits $31,000 27,000 27,500 18,000 84,000 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 assets $33,000 46,000 25,000 19,000 30,000 126.500 $233.500 $233,500 Totals Required a. Open a general journal for the City of Monroe Stores and Service Fund and record the following transactions. (1) A budget was prepared for FY 2015. It was estimated that the price charged other departments for supplies should be 1.25% ofcost to achieve the desired breakeven for the year. (2) The amount due from other funds as of January 1, 2015, was collected in full. (3) During the year, supplies were ordered and received in the amount of $303,500. 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 (7) Cash was received from the General Fund in the amount of $310,000 and from (8) Accounts payable were paid in the amount of $355,700. payable as follows: Purchasing, $15,000: Warehousing, $16,.000; Delivery $17,500; and Administrative, $9,200 the Water Utility Fund in the amount of $50,000 (9) Depreciation in the amount of $11,000 was recorded for buildings and $4.600 for equipment

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