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

ekkarill92 answered 10 months ago

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