Solved

Akron Established an Internal Service Fund for Its Data Processing

question 8

Essay

Akron established an internal service fund for its data processing activities on July 1,20X8.During the fiscal year ended June 30,20X9,the following transactions and events occurred:
1)On July 1,20X8,the city council authorized the general fund to contribute $1,000,000 to help establish the internal service fund on July 20,20X8.
2)The internal service fund spent $900,000 of the contribution to acquire a mainframe computer on July 25,20X8.
3)During the year ended June 30,20X9,the internal service billed other funds of the city $300,000 for use of the computer.By year end,all of the billings were collected except for $30,000.
4)The internal service fund incurred general operating expenses of $100,000,exclusive of depreciation,during the year ended June 30,20X9.All of the expenses were paid by June 30,20X9,except for $24,000.
5)Depreciation expense related to the computer was $180,000.
Required:
A)Prepare all journal entries that would be recorded by Akron's internal service fund for the year ended June 30,20X9.Explanations for journal entries are not necessary.
B)Prepare a statement of revenues,expenses,and changes in fund net assets for the internal service fund for the year ended June 30,20X9.
C)Calculate the amount of unrestricted net assets at June 30,20X9.
Problem 82 (continued):

Definitions:

Anorexia Nervosa

A psychological condition marked by significantly low body weight, a profound dread of weight gain, and a skewed view of one's body size or form.

Electroconvulsive Therapy

A medical treatment involving the induction of seizures through electrical currents to the brain, primarily used for severe depression.

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of the previous experiences that contribute to the knowledge.

Priming Effects

The influence that a prior stimulus has on the response to a later stimulus, often facilitating or altering the response.