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City of Monroe Chapters 10 & 11-Proprietary Funds 6-C. Part 1. Internal Service Fund Transactions The Stores and Service Fund of the January 1, 2017:

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City of Monroe Chapters 10 & 11-Proprietary Funds 6-C. Part 1. Internal Service Fund Transactions The Stores and Service Fund of the January 1, 2017: City of Monroe had the following account balances as of Debits Credits Cash Due from other funds Inventory of supplies Land $28,000 27,000 27,500 18,000 84,000 Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Accounts payable Advance from water utility fund Net position $30,000 46,000 25,000 19,000 30,000 126,500 $230,500 $230,500 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 2017. 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, 2017, was collected in full. (3) During the year, supplies were ordered and received in the amount of $307,000. (4) $15,000 of the advance from the Water Utility Fund, originally provided for (5) During the year, supplies costing $250,560 were issued to the General Fund, and This amount was posted to accounts payable. construction, was repaid. No interest is charged. 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, $15,000; Warehousing, $16,900; Delivery, $17,500; and Administrative, $9,000. (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 $365,000. (9) Depreciation in the amount of $10,000 was recorded for buildings and $4,600 for equipment

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