On January 1,2011,the General Fund Contributes $200,000 Cash to the Internal

question 39

Multiple Choice

On January 1,2011,the General Fund contributes $200,000 cash to the Internal Service Fund.On January 1,2011,the General Fund also loans $100,000 cash to the Internal Service Fund.On January 1,2011,what journal entry does the Internal Service Fund prepare?

• A)debit Cash $300,000,credit Other Financing Sources $300,000
• B)debit Cash $300,000,credit Other Financing Sources $200,000,credit Advance from General Fund $100,000
• C)debit Cash $300,000,credit Advance from General Fund $300,000
• D)debit Cash $300,000,credit Nonreciprocal Transfer from General Fund $200,000,credit Advance from General Fund $100,000

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Definitions:

Price Floor

A minimum price below which exchange is not permitted.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.

Government Imposes

Refers to regulations, taxes, or policies that a government enforces to influence economic or social outcomes.

Price Ceiling

A maximum price that sellers may charge for a good, usually set by government.