Internal Service Funds - Journal Entries
Required: Book journal entries for the following transactions for both the Supplies Fund and the
Government-Wide.
Background: In the fiscal year of 2022 the Town of Susanville, upon the approval of the town
council, created an internal service fund to centralize the purchasing, storing, and issuing
functions.
1. In order to provide cash to be used for acquisition of a building and equipment needed to
handle the Supply Fund efficiently, the towns Water Utility Fund provides a long-term, interest-
free interfund loan of $130,000 to the Supply Fund which will be repaid in 20 equal annual
installments. The entry to record the loan is as follows:
Supplies Fund:
Government-Wide:
2. During 2022, supplies are received and related invoices are approved for payment in the
amount of $192,600:
Supplies Fund:
Government-Wide:
3. The budget for the Town of Susanvilles Supplies Fund indicates a 35% markup on the cost
for all supplies issued. The Supply Fund issues supplies costing $185,000 to the General Fund
which will be considered to be allocated and used to departments as follows: General
Government $9,885; Public Safety $54,889; Public Works $99,448; Culture and Recreation
$17,741; Health and Welfare $3,037:
Supplies Fund:
Government-Wide:
4. Collections of payment from the General Fund totaled $249,750 for 2020. The journal entry
is as follows:
Supplies Fund:
Government-Wide:.
Internal Service Funds - Journal EntriesRequired Book journal en.pdf
1. Internal Service Funds - Journal Entries
Required: Book journal entries for the following transactions for both the Supplies Fund and the
Government-Wide.
Background: In the fiscal year of 2022 the Town of Susanville, upon the approval of the town
council, created an internal service fund to centralize the purchasing, storing, and issuing
functions.
1. In order to provide cash to be used for acquisition of a building and equipment needed to
handle the Supply Fund efficiently, the towns Water Utility Fund provides a long-term, interest-
free interfund loan of $130,000 to the Supply Fund which will be repaid in 20 equal annual
installments. The entry to record the loan is as follows:
Supplies Fund:
Government-Wide:
2. During 2022, supplies are received and related invoices are approved for payment in the
amount of $192,600:
Supplies Fund:
Government-Wide:
3. The budget for the Town of Susanvilles Supplies Fund indicates a 35% markup on the cost
for all supplies issued. The Supply Fund issues supplies costing $185,000 to the General Fund
which will be considered to be allocated and used to departments as follows: General
Government $9,885; Public Safety $54,889; Public Works $99,448; Culture and Recreation
$17,741; Health and Welfare $3,037:
Supplies Fund:
Government-Wide:
4. Collections of payment from the General Fund totaled $249,750 for 2020. The journal entry
is as follows:
Supplies Fund:
