Use the following information to answer
The City of Brockton voted to establish an internal service fund to account for its printing services.The City transferred $500,000 cash from the General Fund to the newly created internal service fund.
-The appropriate entry in the general fund to account for this transfer would be a credit to cash for $500,000 and a debit for $500,000 to
A)Due from internal service fund.
B)Transfer out.
C)Expenditures.
D)Investment in internal service fund.

Question

Use the following information to answer 
The City of Brockton voted to establish an internal service fund to account for its printing services.The City transferred $500,000 cash from the General Fund to the newly created internal service fund.
-The appropriate entry in the general fund to account for this transfer would be a credit to cash for $500,000 and a debit for $500,000 to
A)Due from internal service fund.
B)Transfer out.
C)Expenditures.
D)Investment in internal service fund.

Quizplus · Accepted Answer

The appropriate entry in the general fund to account for transferring $500,000 to the internal service fund would be a credit to cash for $500,000 and a debit for $500,000 to "Transfer out". This is because the funds are being transferred from the General Fund to the newly created internal service fund. "Transfer out" would represent this transfer of funds from the General Fund to another fund.

Use the Following Information to Answer