Prepare Journal Entries in an Internal Service Fund of Union

question 28

Essay

Prepare journal entries in an Internal Service Fund of Union County to record each of the following transactions.
1.Purchased equipment on September 1,2011 by paying $25,000 down and borrowing $100,000 on a 6%,2-year note.
2.In 2011,billed General Fund $620,000 for services provided.Billings to the Enterprise Fund totaled $165,000.All billings were collected by December 31,2011 except for $100,000 charged to the General Fund.
3.Accrued year-end adjustments at December 31,2011 for interest expense and depreciation.The useful life of the equipment is 5 years with no salvage value.

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Definitions:

C-H Bond

A chemical bond between a carbon and hydrogen atom, foundational in organic chemistry and present in all organic molecules.

C-D Bond

A chemical bond between a carbon atom and a deuterium atom, an isotope of hydrogen.

Infrared Wavelength

Portions of the electromagnetic spectrum that are longer than visible light but shorter than microwaves, commonly used in spectroscopy to identify molecular vibrations.

Wavenumber

Wavenumber is a measure of the number of wavelengths per unit distance, often used in spectroscopy to describe the energy level of electromagnetic radiation.