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Harvey city comprehensive case

28/12/2020 Client: saad24vbs Deadline: 12 Hours

Harvey City Comprehensive Case


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.


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