SOLUTIONS TO PROBLEMS
Problem 3-1 (a)
# Accounts Dr. Cr.
1. Transfer to Internal Service Fund ……………..…………………… 100,000
Cash ………………………………………………….………………… 100,000
To record transfer to establish Internal Service Fund.
2. No entry in the General or Special Revenue Fund.
Entries are made in the General Capital Assets and General
Long-Term Liabilities accounts (to remove the truck) and
in the Enterprise Fund (to record receipt of the truck).
3. Due from Airport Enterprise Fund ……………………………..….. 800
Revenues ………………………………………………………….….. 800
To record billing for services rendered.
(An interfund services transaction)
4. Due from Capital Projects Fund ……………………………………. 50,000
Cash ………………………………………………….………………… 50,000
To record interfund loan.
5. No entry in General or Special Revenue Fund. Entries are
made in a Capital Projects Fund and in the General Capital
Assets and General Long-Term Liabilities accounts.
6. Transfer to Capital Projects Fund ……………..…………………… 35,000
Cash ………………………………………………….………………… 35,000
To record interfund transfer to help finance a
capital project.
7. Cash …………………………………………………………………………… 8,500
Transfer from Debt Service Fund …………….……………… 8,500
To record interfund transfer of balance of
discontinued fund.
1
Problem 3-1 (a) (continued)
# Accounts Dr. Cr.
8. Advance to Enterprise Fund ………………………………………….. 70,000
Cash ………………………………………………….………………… 70,000
To record 3-year advance to Enterprise Fund.
9. Cash …………………………………………………………………………… 6,500
Correction of Prior Year Error ……………….……………….. 6,500
To correct prior year accounting error.
10. Due from Capital Projects Fund ……………………………………. 4,000
Expenditures ………………………………………………………… 4,000
To record correction of accounting error made
during the current period. (This reimbursement
entry is made in the Special Revenue Fund.)
