Question

The following transactions affected various funds and activities of the Town of Big Springs. Required Prepare the journal entries for the funds and activities

Transaction Fund / Governmental Activties General Journal Debit Credit 1. The Fire Department, a governmental activity accounted for within the General Fund, purchased $125,000 of water from the Water Utility Fund, an enterprise fund. 1 General Fund Governmental Activities Enterprise Fund 2. A special revenue fund was awarded a $250,000 reimbursement grant. The General Fund advances $62,500 to the special revenue fund for a short-term period to cover initial costs associated with the grant’s purpose. 2 General Fund Interfund Loans Receivable—Noncurrent Cash Governmental Activities Cash Expenses—General Government Special Revenue Fund Expenses—General Government Cash 3. The General Fund transferred its annual contribution of $125,000 to the debt service fund for interest and principal on general obligation bonds due during the year. 3 General Fund Governmental Activities Debt Service Fund 4. The $5,500 balance in the capital projects fund at the completion of construction of a new Town Hall was transferred to the General Fund. 4 General Fund Governmental Activities Capital Projects Fund 5. The General Fund made a long-term loan in the amount of $62,500 to the Central Stores Fund, an internal service fund that services town departments. 5 General Fund Governmental Activities Internal Service Fund

Answer 1

1. The Fire Department, a governmental activity accounted for within the General Fund, purchased $125,000 of water from the Water Utility Fund, an enterprise fund.

General Fund	Expenditures	125,000
	Cash		125,000
Governmental Activities	Expenses - public safety	125,000
	Cash		125,000
Enterprise Fund	Cash	125,000
	Revenues		125,000

2.   A special revenue fund was awarded a $250,000 reimbursement grant. The General Fund advances $62,500 to the special revenue fund for a short-term period to cover initial costs associated with the grant’s purpose.

General Fund	Interfund loans receivable - current	62,500
	Cash		62,500
Governmental Activities	No entry
Special Revenue Fund	Cash	62,500
	Interfund loans receivable - current		62,500

3. The General Fund transferred its annual contribution of $125,000 to the debt service fund for interest and principal on general obligation bonds due during the year.

General Fund	Other financing uses - Interfund transfers out	125,000
	Cash		125,000
Governmental Activities	No entry
Debt Service Fund	Cash	125,000
	Other financing sources - Interfund transfers in		125,000

4. The $5,500 balance in the capital projects fund at the completion of construction of a new Town Hall was transferred to the General Fund.

General Fund	Cash	5500
	Other financing sources - Interfund transfers in		5500
Governmental Activities	No entry
Capital Projects Fund	Other financing sources - Interfund transfers out	5500
	cash		5500

5. The General Fund made a long-term loan in the amount of $62,500 to the Central Stores Fund, an internal service fund that services town departments.

General Fund	Interfund loans receivable - noncurrent	62,500
	cash		62,500
	Fund balance	62,500
	Reserve for interfund loan receivable - non current		62,500
Governmental Activities	No entry
Internal Service Fund	Cash	62,500
	Interfund loans payable - noncurrent		62,500