An Internal Service Fund Had the Following Transactions During the Year

question 11

Multiple Choice

An internal service fund had the following transactions during the year ended June 30,20X9,its first year of existence:
(1) Received $1,000,000 contribution from the general fund.
(2) Acquired fleet of cars for $950,000,paying cash.
(3) Billed departments in other funds $500,000 for using cars.
(4) Incurred operating costs,exclusive of depreciation,of $240,000.
(5) Depreciation expense amounted to $250,000.
-Refer to the above information.On the internal service fund's balance sheet at June 30,20X9,net assets-unrestricted should be reported at:

• A)$260,000.
• B)$310,000.
• C)$550,000.
• D)$1,250,000.

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Definitions:

Obligations

Duties or responsibilities that are legally or morally binding.

Directors And Officers

Individuals appointed or elected to oversee the major policies and decisions of a company, corporation, or non-profit organization.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and interests in the company.

Property Taxation

A form of taxation imposed on property owners based on the value of their property.