The City of Odessa maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements.As such,the City's internal service fund,a print shop fund,is included in the proprietary funds statements.Required:
Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities:
A.Balance sheet accounts include:
Cash,$150,000; Inventories,$425,000; Capital Assets,$1,200,000; Accumulated Depreciation,$500,000; Accounts Payable,$150,000; Bonds Payable,$500,000,Net Assets,$525,000.
B.The only transaction in the internal service fund that is external to the government is interest income in the amount of $15,000.
C.Exclusive of the interest expense,the internal service fund reported (net)income of $60,000.An examination of the records indicates that services were provided as follows:
one half to general government,one fourth to public safety,one fourth to culture and recreation.

Question

The City of Odessa maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements.As such,the City's internal service fund,a print shop fund,is included in the proprietary funds statements.Required:
 Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities:
A.Balance sheet accounts include:
 Cash,$150,000; Inventories,$425,000; Capital Assets,$1,200,000; Accumulated Depreciation,$500,000; Accounts Payable,$150,000; Bonds Payable,$500,000,Net Assets,$525,000.
B.The only transaction in the internal service fund that is external to the government is interest income in the amount of $15,000.
C.Exclusive of the interest expense,the internal service fund reported (net)income of $60,000.An examination of the records indicates that services were provided as follows:
 one half to general government,one fourth to public safety,one fourth to culture and recreation.

Quizplus · Accepted Answer

The Answer of The City of Odessa maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements.As such,the City's internal service fund,a print shop fund,is included in the proprietary funds statements.Required:
 Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities:
A.Balance sheet accounts include:
 Cash,$150,000; Inventories,$425,000; Capital Assets,$1,200,000; Accumulated Depreciation,$500,000; Accounts Payable,$150,000; Bonds Payable,$500,000,Net Assets,$525,000.
B.The only transaction in the internal service fund that is external to the government is interest income in the amount of $15,000.
C.Exclusive of the interest expense,the internal service fund reported (net)income of $60,000.An examination of the records indicates that services were provided as follows:
 one half to general government,one fourth to public safety,one fourth to culture and recreation.

The City of Odessa Maintains Its Books So as to Prepare