question archive 1) On December 31, 19x0, the City paid $115,000 out of General Fund revenues for a central garage to service its vehicles, with $67,500 being applicable to the building, which has an estimated life of 25 years; $14,500 to land; $33,000 to machinery and equipment, which has an estimated life of 15 years
1) On December 31, 19x0, the City paid $115,000 out of General Fund revenues for a central garage to service its vehicles, with $67,500 being applicable to the building, which has an estimated life of 25 years; $14,500 to land; $33,000 to machinery and equipment, which has an estimated life of 15 years
Subject:AccountingPrice: Bought3
1) On December 31, 19x0, the City paid $115,000 out of General Fund revenues for a central garage to service its vehicles, with $67,500 being applicable to the building, which has an estimated life of 25 years; $14,500 to land; $33,000 to machinery and equipment, which has an estimated life of 15 years. A $12,200 cash contribution was received by the garage from the General Fund on the dame date.
2) The garage maintains no records, but a review of deposit slips and canceled checks revealed the following:
Collections for services to General Fund departments $30,000
Office salaries 6,000
Utilities 700
Mechanic's wages 11,000
Materials and supplies 9,000
- The garage had uncollected billings of $2,000, accounts payable for materials and supplies of $550, and an inventory of materials and supplies of $1,500 at June 30, 19x1.
Required
Prepare journal entries that should be made to establish an Internal Service Fund for the City of Delmas and to record the events for the period given. also, prepare any necessary adjusting and closing entries as of June 30, 19x1, the end of the fiscal year..
