The City of Southern Pines maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. As such, the Citys internal service fund, a motor pool fund, is included in the proprietary funds statements.

1. Balance sheet asset accounts include: Cash, $88,000; Investments, $129,400; Due from the General Fund, $15,500; Inventories, $335,800; and Capital Assets (net), $991,900. Liability accounts include: Accounts Payable, $51,700; Long-Term Advance from Enterprise Fund, $620,400.
2. The only transaction in the internal service fund that is external to the government is interest revenue in the amount of $3,000.
3. Exclusive of the interest revenue, the internal service fund reported net income in the amount of $42,000. An examination of the records indicates that services were provided as follows: one-third to general government, one-third to public safety, and one-third to public works.

Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities.

Transaction List:

Balance sheet asset accounts include: Cash, $88,000; Investments, $129,400; Due from the General Fund, $15,500; Inventories, $335,800; and Capital Assets (net), $991,900. Liability accounts include: Accounts Payable, $51,700; Long-Term Advance from Enterprise Fund, $620,400.

The only transaction in the internal service fund that is external to the government is interest revenue in the amount of $3,000.

Exclusive of the interest revenue, the internal service fund reported net income in the amount of $42,000. An examination of the records indicates that services were provided as follows: one-third to general government, one-third to public safety, and one-third to public works.