Transactions and Closing Entries
The City of Merlot operates a central garage through an Internal Service Fund to provide garage space and repairs for all city-owned and -operated vehicles. The Central Garage Fund was established by a contribution of $500,000 from the General Fund on July 1, 20X7, at which time the building was acquired. The postclosing trial balance at June 30, 20X9, was as follows:
	Debit	Credit
Cash	$ 150,000
Due from General Fund	20,000
Inventory of Materials and Supplies	80,000
Land	60,000
Building	200,000
Accumulated Depreciation - Building		$ 10,000
Machinery and Equipment	56,000
Accumulated Depreciation - Machinery and Equipment		12,000
Vouchers Payable		38,000
Net Position		506,000
	$ 566,000	$ 566,000
The following information applies to the fiscal year ended June 30, 20Y0:
1. Materials and supplies were purchased on account for $74,000.
2. The inventory of materials and supplies at June 30, 20Y0, was $58,000, which agreed with the physical count taken.
3. Salaries and wages paid to employees totaled $230,000, including related costs.
4. A billing from the Enterprise Fund for utility charges totaling $30,000 was received and paid.
5. Depreciation of the building was recorded in the amount of $5,000. Depreciation of the machinery and equipment was $8,000.
6. Billings to other departments for services rendered to them were as follows:
General Fund $263,000
Water and Sewer $84,000
Special Revenue Fund $32,000
7. Unpaid interfund receivable balances at June 30, 20Y0, were as follows:
General Fund $6,000
Special Revenue Fund 16,000
8. Vouchers payable at June 30, 20Y0, were $14,000
REQUIRED:
a. For the period July 1, 20X9, through June 30, 20Y0, prepare journal entries to record all of the transactions in the Central Garage Fund Accounts.
b. Prepare closing entries for the Central Garage Fund at June 30, 20Y0. (AICPA, adapted)