Week 4.docx - Week 4 P7-2(Journal entries and financial statements for an Internal Service Fund Lilly County faced with the prospect of declining

Week 4.docx - Week 4 P7-2(Journal entries and financial...

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Week 4 P7-2 (Journal entries and financial statements for an Internal Service Fund) Lilly County, faced with the prospect of declining revenues, decides itcan save money by doing all printing in-house. The county creates the Lilly Printing Fund (an Internal Service Fund), directs departments to fulfill theirbulk printing needs through that fund, and directs departments to pay the fund promptly to minimize its working capital needs. The fund had the following transactions and events during 2013. Prepare (a) journal entries to record these transactions in the Lilly Printing Fund; (b) a statement of net position as of December 31, 2013; and (c) a statement of revenues, expenses, and changes in net position for the year ended December 31, 2013.1. Received a loan on January 2 from the county in the amount of $6,000, to be repaid in four equal annual installments of $1,500, starting December 31, 2013, with interest at the rate of 1 percent per annum on the outstanding balance. The specified purpose of the loan was to
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