The City of Ashville operates an internal service fund to provide garage space a

Question

The City of Ashville operates 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 $360,000 from the General Fund on July 1, 2017, at which time the land and building were acquired. The pre-closing trial balance at June 30, 2017, was as follows: Credits Cash Due from Other Funds Inventory of Supplies Land Building Allowance for Depreciation-Building Machinery and Equipment Allowance for Depreciation Debits $132,100 10,800 108,000 60,100 300,500 $ 24,100 78,400 Machinery and Equipment Vouchers Payable Net Position-Net Investment in 14,400 37,100 Capital Assets Net Position-Unrestricted 400,500 213,800 $689,900 $689,900 The following information applies to the fiscal year ended June 30, 2017 1. Supplies were purchased on account for $110,500; the perpetual inventory method is used 2. The cost of supplies used during the year ended June 30, 2014, was $132,100. A physical count taken as of that date showed materials and supplies on hand totaled $86,400 at cost. 3. Salaries and wages paid to employees totaled $281,900, including related costs 4. Billings totaling $36,000 were received from the enterprise fund for utility charges. The Central Garage Fund paid $32,400 of the amount owed. (At the government-wide level, record the payable amount as Internal Balances.) 5. Depreciation of the building was recorded in the amount of $11,900; depreciation of the machinery and equipment amounted to $10,800 6. Billings to other departments for services provided to them were as follows General Fund Special Revenue Fund $324,000 152,300

Explanation / Answer

Explanation -

Central garage Internal service fund would be reported at government activity level. This will be reported as part of government activity coloumn at government wide statement of activities.

Since the funds served are government funds and not enterprise funds.

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