Question

In: Accounting

E10.12 Interfund Transactions Interfund transfers of the general fund of Timberline County for 2020 were as...

E10.12 Interfund Transactions

Interfund transfers of the general fund of Timberline County for 2020 were as follows:

1. $2,000,000 advance to the Park Development special revenue fund, to permit initial expenditures under a project to be fully supported by a federal grant.

2. $1,500,000 to the Timberline County Fire Protection District (a special revenue fund) as the county’s contribution to fire and emergency medical service activities for the year.

3. $500,000 from the Roads capital projects fund, unspent proceeds of a bond issue.

4. $3,000,000 to the County Hospital (enterprise fund), as the city’s cost of services provided.

5. $2,900,000 to the Airport Fund (enterprise fund) to temporarily finance the maintenance of runways.

6. $2,000,000 from the Park Development special revenue fund, to repay the advance.

Required

For each of the above interfund transfers, state how the transaction is reported on the general fund’s balance sheet and/or statement of revenues, expenditures, and changes in fund balances.

Solutions

Expert Solution

Interfund transfer of the general fund of Timberline Country 2020
1 General Fund Debit($) Credit ($)
Due from the park developement Special revenue        20,00,000
cash 20,00,000
( to record short term advance )
park developement
cash        20,00,000
Due to General Fund 20,00,000
( to record receipt short term Loan)
2 General Fund
Transfer out to Timberline Country Fire Protection        15,00,000
cash 15,00,000
( contibuton towards fire and emergency medical)
Timberline Country Fire Protection
Cash        15,00,000
Transfer in from general fund 15,00,000
4 General Fund
Transfer out to Country Hospital        30,00,000
cash 30,00,000
( contributon towards cost of services)
Country Hospital
Cash        30,00,000
Transfer in from general fund 30,00,000
5 General Fund
Transfer out to Airport Fund        29,00,000
cash 29,00,000
( contributon towards temporary finance the maintenance of runways
Airport Fund
Cash        29,00,000
Transfer in from general fund 29,00,000
6 General Fund
Cash        20,00,000
Due to Park development 20,00,000
received from park development -repay in advance
Park development
Due from General Fund        20,00,000
Revenue 20,00,000
3 General Fund
Cash           5,00,000
Due to Road Capital     5,00,000
received from Road Capital -unspent proceeds of a bond
Road Capital
Due from General Fund           5,00,000
Revenue     5,00,000

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