The City of Sill Established an Internal Service Fund to Provide

question 3

Essay

The City of Sill established an Internal Service Fund to provide cleaning services to all city offices and departments.The following transactions took place with respect to this event.
1.The General Fund contributed cash of $49,000 to the Internal Service Fund.The General Fund provided a $10,000 loan to the Internal Service Fund.
2.On January 1,2014,the Internal Service Fund acquired a floor waxing machine for cash of $5,000.It has a 5 year life with no salvage value,and the city uses straight-line depreciation on their assets.
3.The cleaning services department billed other government agencies and departments $226,000 and collected $187,000.
4.The cleaning services department incurred and paid the following expenses: cleaning personnel wages,$65,000; payroll taxes,$10,000; cleaning supplies,$13,000; and office rental and utilities,$77,000.The cleaning services department also repaid the general fund for the loan.
5.The cleaning services department prepared the journal entry to depreciate their assets for the year ending December 31,2014.
Required:
Prepare the necessary journal entries for each of the above transactions for the Internal Service Fund.

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Definitions:

True-RMS

A measurement of AC voltage or current that accurately reflects the root-mean-square value, providing a true representation of power in a circuit, regardless of waveform shape.

Harmonic Distortion

A deviation from the ideal wave form in signals, generally due to the presence of frequencies that are multiples of the original signal's frequency.

Phase Currents

The electric current flowing through one phase of a multi-phase system.

Neutral Conductor

The conductor in an electrical system that is grounded and carries current only under fault conditions, providing a path for current to return to its source in a balanced system.