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Journal entries and financial statements for an Internal Service Fund Lilly County, faced with the prospect of declining revenues, decides it can save money by

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Journal entries and financial statements for an Internal Service Fund Lilly County, faced with the prospect of declining revenues, decides it can save money by doing all printing in-house. The county creates the Lilly Printing Fund (an internal Service Fund), directs departments to fulfill their bulk printing needs through that Fund, and directs departments to pay the Fund promptly to minimize its operating cash flow needs. The Fund had the following transactions and events during 2018. Prepare a journal entries to record these transactions in the Ully Printing Fund: Ch) a statement of net position as of December 31, 2018; and (c) a statement of revenues, expenses, and changes in fund net position for the year ended December 31, 2018 1. Received a $6,000 loan on January 2 from the county's General Fund to be repaid in four equal annual installments of $1.500, starting December 31, 2018, with interest at the rate of 1 percent per annum on the outstanding balance. The specified purpose of the loan is to allow the Lilly Printing Fund to purchase equipment for 54,800 and to use the balance of $1,200 to meet operating cash flow needs. 2. Purchased reproduction equipment for 54,800 on January 2 using cash provided. The equipment has an estimated useful life of years, 3. Purchased paper and supplies for 54,500 on credit. (Because inventories are kept to a minimum, charge the purchase to Supplies expense) 4. Sent invoices of $65.000 for printing services to departments financed by the General Fund 5. Received cash in the amount of 563,000 as a result of Transaction 4 6. Pald the 54,500 invoice received in Transaction 3 7. Pald salaries in the amount of $50,000 and utility bills in the amount of $6,000 8. Repaid the county 51,500 of principal on the loan plus interest of percent 9. In preparation for year end financial statements, recorded anual depreciation on its repro Fund 1 Description Debit Credit

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