The City of Light Falls operates a centralized garage and charges the other departments on a per-mile basis for the purchase and maintenance of most city-owned vehicles.

Required:

Make journal entries to record the following selection of transactions concerning the motor pool during the following year:

a.Salaries of $360,000 were paid during the year.

b.A bill from the Water and Sewer Enterprise Fund for $8,000 was received and paid.

c.Eight new vehicles costing $24,000 each were purchased for cash.

d.Billing to other city funds were as follows:

General Fund
$550,000

Utility Fund
130,000

Special Revenue Fund
20,000

e.All of the billings in (d) except $50,000 from the Utility Fund were paid.
f.Depreciation expense on the motor pool assets was $225,000 for the year.

Question

The City of Light Falls operates a centralized garage and charges the other departments on a per-mile basis for the purchase and maintenance of most city-owned vehicles.
​
Required:
​
Make journal entries to record the following selection of transactions concerning the motor pool during the following year:
​
a.Salaries of $360,000 were paid during the year.​
​
​
​
b.A bill from the Water and Sewer Enterprise Fund for $8,000 was received and paid.​
​
​
​
c.Eight new vehicles costing $24,000 each were purchased for cash.​
​
​
​
d.Billing to other city funds were as follows:
​
​
General Fund
$550,000
​
Utility Fund
130,000
​
Special Revenue Fund
20,000
​
​
​
e.All of the billings in (d) except $50,000 from the Utility Fund were paid.​
f.Depreciation expense on the motor pool assets was $225,000 for the year.​
​
​

Quizplus · Accepted Answer

The Answer of The City of Light Falls operates a centralized garage and charges the other departments on a per-mile basis for the purchase and maintenance of most city-owned vehicles.
​
Required:
​
Make journal entries to record the following selection of transactions concerning the motor pool during the following year:
​
a.Salaries of $360,000 were paid during the year.​
​
​
​
b.A bill from the Water and Sewer Enterprise Fund for $8,000 was received and paid.​
​
​
​
c.Eight new vehicles costing $24,000 each were purchased for cash.​
​
​
​
d.Billing to other city funds were as follows:
​
​
General Fund
$550,000
​
Utility Fund
130,000
​
Special Revenue Fund
20,000
​
​
​
e.All of the billings in (d) except $50,000 from the Utility Fund were paid.​
f.Depreciation expense on the motor pool assets was $225,000 for the year.​
​
​

The City of Light Falls Operates a Centralized Garage and Charges