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 internal service fund is a debit to cash for $500,000 and a credit for $500,000 to
A)Due to general fund.
B)Transfer in.
C)Capital contribution Revenues.
D)Investment provided by the general 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 internal service fund is a debit to cash for $500,000 and a credit for $500,000 to
A)Due to general fund.
B)Transfer in.
C)Capital contribution Revenues.
D)Investment provided by the general fund.

Quizplus · Accepted Answer

The appropriate credit in the internal service fund is "Transfer in" because the cash was transferred from the General Fund to the internal service fund. The other choices are not applicable in this situation. Due to general fund and Investment provided by the general fund imply that the General Fund received something in return, which is not the case. Capital contribution revenues refer to revenue generated from investments, which is also not applicable here.

Use the Following Information to Answer