Question
This is what I have so far Part A: Debit Credit a) Cash $1,290,000 Contribution $450,000 Long term liability $840,000 b) Equipment $910,000 Cash $910,000
This is what I have so far
Part A:
Debit Credit
a) Cash $1,290,000
Contribution $450,000
Long term liability $840,000
b) Equipment $910,000
Cash $910,000
c) Supplies $140,000
Accounts payable $30,000
Cash $110,000
d) Cash $350,000
Accounts Receivable $75,000
Sales $425,000
e) Supplies expenses $86,000
Supplies $86,000
f)Salaries and wages expense $21,000
Cash $21,000
Utilities Expense $4,000
Cash $4,000
g)Depreciation Expenses $82,000
Accumulated depreciation-equipment $82,000
h) Long Term Liability $210,000
Cash $210,000
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Part B:
Required 1,2,&3
The Village of Lake George decided to establish an internal service fund to account for the operations of a Print Shop. The Print Shop is to begin operations on July 1, 2019 the first day of the City's fiscal year. During the fiscal year ended June 30, 2020 the following transactions occurred: (a) The General Fund made a permanent contribution of $450,000 and a long-term advance of $840,000 to the Print Shop Fund. The advance is to be repaid by the Print Shop Fund in four equal annual installments; the first installment is due 6/30/2020. The advance is non-interest bearing and is considered issued for the purchases of equipment. (b) During the year equipment was purchased (for cash) in the amount of $ 910,000. (c) During the year, printing supplies costing $140,000 were purchased; all but $30,000 was paid in cash. (d) Billings to departments during the year totaled $ 425,000 at selling price. All but $75,000 was received in cash. (e) The cost of supplies used during the year totaled $86,000; (f) Salaries and wages were $21,000 and utilities were $4,000 (all paid in cash); and (g) Depreciation was charged on equipment, $82,000. (h) The first installment of the advance was repaid. Required: 1. Prepare journal entries in the general journal of the Village of Lake George Print Shop Fund to reflect the above transactions. 2. Prepare closing entries for the year. 3. Prepare, in good form, the equity section of the Statement of Net position for the Village of Lake George Print Shop Fund as of June 30, 2020Step by Step Solution
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