Prepare Journal Entries in the Motor Pool Department of Hill

question 29

Essay

Prepare journal entries in the motor pool department of Hill County to record each of the following transactions.
1.The General Fund contributed $50,000 cash to the motor pool department.The motor pool department purchased four vehicles on July 1,2011 by paying $50,000 down and borrowing $70,000 on a 5%,3-year note.
2.Billed General Fund departments $430,000 for services provided to those departments.Billings to the Enterprise Fund totaled $210,000.All billings were collected by year-end(June 30,2012)except for $80,000 charged to the General Fund.
3.Accrued year-end adjustments at June 30,2012 for interest expense and depreciation.The useful life of the equipment is 5 years with no salvage value.

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Definitions:

Triglycerides

A type of fat found in the blood, derived from the foods we eat, and an essential energy source for the body.

Lipids

Organic compounds that are fatty acids or their derivatives, insoluble in water but soluble in organic solvents, playing roles in energy storage, cell membrane structure, and signaling.

Immunity

Resistance to infectious disease and harmful substances.