Posts

Harvey City Comprehensive Case

/in /by

Harvey City Comprehensive Case

ORDER A PLAGIARISM FREE PAPER NOW

CENTRAL COMMUNICATIONS NETWORK INTERNAL SERVICE FUND

Harvey City uses an Internal Service Fund to account for its Central Communications Network. This centralized department provides information system and telephone services to all city departments and agencies. The user departments and agencies are charged for services used. The Central Communications Network is required to establish reimbursement rates that approximately equal the costs incurred by the agency to provide network services.

REQUIREMENTS

a. Prepare a worksheet for the Central Communications Network Internal Service Fund similar to the General Fund worksheet you created in Chapter 4. Enter the effects of the following transactions and events in the appropriate columns of the worksheet. (A different solution approach may be used if desired by your professor.)

b. Enter the preclosing trial balance in the appropriate worksheet columns.

c. Enter the preclosing trial balance amounts in the closing entry (operating statement data) and postclosing trial balance (statement of net position data) columns, as appropriate.

d. Prepare the 20X4 statement of revenues, expenses, and changes in fund net position for the Central Communications Network Internal Service Fund.

e. Prepare the 20X4 year-end statement of net position for the Central Communications Network Internal Service Fund.

f. Prepare the 20X4 statement of cash flows for the Central Communications Network Internal Service Fund.

 

BEGINNING 20X4 TRIAL BALANCE

The January 1, 20X4, trial balance for the Central Communications Network Internal Service Fund of Harvey City is presented here:

Harvey City

Central Communications Network Internal Service Fund

Trial Balance

January 1, 20X4

Debit Credit

Cash $57,000

Due from General Fund 8,000

Inventory of Materials and Supplies 5,800

Machinery and Equipment 850,000

Accumulated Depreciation—Machinery and Equipment $145,000

Vouchers Payable 3,800

Net Position 772,000

Totals $920,800 $920,800

 

AND EVENTS—20X4

1. Billings to departments for communications network services during 20X4 were as follows:

General Fund departments $57,070

Water and Sewer Department 33,000

Total $90,070

2. The department collected $61,000 from the General Fund and $30,000 from the Enterprise Fund.

3. Payroll of $60,000 was paid, and $3,000 was contributed to the statewide retirement system.

4. The department purchased materials and supplies costing $14,000 and a voucher was approved.

5. Materials and supplies costing $17,700 were used by the Central Communications Network during 20X4.

6. Vouchers payable of $15,000 were paid.

7. Depreciation for the year was $8,370.

8. Salaries and wages of $1,000 were accrued at the end of the year.

Harvey City Comprehensive Case

/in /by

Harvey City Comprehensive Case

ORDER A PLAGIARISM FREE PAPER NOW

a. Prepare a worksheet for the Police and Fire Pension Trust Fund similar to the General Fund worksheet you created in Chapter 4. Enter the effects of the following transactions and events in the appropriate columns of the worksheet. (A different solution approach may be used if desired by your professor.)

b. Enter the preclosing trial balance in the appropriate worksheet columns.

c. Enter the preclosing trial balance amounts in the closing entry (operating statement data) and postclosing trial balance (balance sheet data) columns, as appropriate.

d. Prepare the 20X4 Statement of Changes in Net Position for the Police and Fire Pension Trust Fund.

e. Prepare the year-end 20X4 Statement of Net Position for the Police and Fire Pension Trust Fund. (Freeman 509)
Freeman, Robert J., Craig Shoulders, Gregory Allison, G. Smith, Jr.. Governmental and Nonprofit Accounting, 10th Edition. Pearson Learning Solutions, 7/2012. VitalBook file.

BEGINNING 20X4 TRIAL BALANCE

The January 1, 20X4, trial balance for the Harvey City Police and Fire Pension Trust Fund is presented here:

Harvey City

Police and Fire Pension Trust Fund

Trial Balance

January 1, 20X4

Debit

Credit

Cash

$   120,000

Investments

1,271,800

Accrued Interest Receivable

8,600

Due to Resigned Employees

$      400

Net Position—Restricted for Pension Benefits

1,400,000

Totals

$1,400,400

$1,400,400

TRANSACTIONS AND EVENTS—20X4

1. Employer contributions of $60,200 were received from the General Fund by the Police and Fire Pension Trust Fund, which is administered by the city.

2. The city purchased investments costing $60,200 for the Police and Fire Pension Trust Fund with the contributions.

3. Refunds of $9,000, which included $400 accrued at the end of 20X3, were paid to terminated employees. The amounts refunded relate to contributions made by the terminated employees prior to 20X3 when the city increased its contributions and eliminated the requirement for employee contributions.

4. Administrative costs of $9,400 were incurred during the fiscal year. Of this amount, $8,700 was paid.

5. Retirement benefits of $78,000 were paid to retirees. Another $1,000 of retirement benefit payments was accrued at year end.

6. The accrued interest receivable of $8,600 from last year plus $60,000 of current year interest revenues were received.

7. Interest at year end was accrued, $65,000. The fair value of investments increased by $17,000. (Freeman 509)
Freeman, Robert J., Craig Shoulders, Gregory Allison, G. Smith, Jr.. Governmental and Nonprofit Accounting, 10th Edition. Pearson Learning Solutions, 7/2012. VitalBook file.