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Akron Established an Internal Service Fund for Its Data Processing

question 41

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.

Definitions:

Health Promotion

Activities such as routine exercise and good nutrition that help patients maintain or enhance their present level of health and reduce their risk of developing certain diseases.

Ill Individuals

Persons suffering from disease, ailment, or other health conditions that affect their physical or mental well-being.

Public Health Nurse

A nurse whose focus is on improving the health outcomes of communities through education, policy advocacy, and implementation of public health practices.

Needs of a Population

The essential requirements ranging from basic physical needs to complex social services, necessary for the well-being and functioning of a community or group.