Static City Started a Department to Provide Copy,printing and Mailing

question 2

Essay

Static City started a department to provide copy,printing and mailing services for all departments and agencies of the city.
During the fiscal year from July 1,2010 through June 30,2011,the copy services department had the following transactions:
1.Paper and toner inventory was purchased for $58,000,on account.
2.The paper and toner inventory physical count showed only $8,000 on hand at June 30,2011.
3.The department billed other departments for services rendered to them amounting to: General Fund,$43,000;Enterprise Fund,$24,000;Debt Service Fund,$21,000;and Trust Fund,$16,000.All receivables were collected with the exception of $6,000 from the Trust Fund which is expected to be collected in July,2011.
4.The department incurred and paid the following expenses: salaries and wages,$23,000;Electric,$8,000;Other operating expenses,$6,000.Also,$63,000 of the Accounts Payable were paid during the year.
5.Depreciation Expense on Equipment amounted to $6,000 for the year ending June 30,2011.
6.The department prepared the closing entry on June 30,2011.
Required:
For the fiscal year ended June 30,2011,prepare the journal entries to record the transactions for the Internal Service Fund.

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Definitions:

Customer Profitability

An analysis to determine the financial value a customer brings to a business over time, considering revenues and costs associated with the relationship.

Customer Service

Services and recommendations given by a firm to purchasers or users of its products or services.

Ease of Doing Business

The amount of effort required on the part of a customer when dealing with a firm.

Consumption Availability

The ease with which consumers can obtain and use a product or service, influenced by factors like location, supply chain efficiency, and inventory levels.