Break Even Example - Assignment3b: 1 Instructions:. 1 .,the

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Assignment 3b: Practical Exercises                                              ACCT 311 1. I nstructions: Complete the problems below. Follow the instructions on the  assignment page for saving and submitting your work. 1. The city of Westboro established a stores and services fund. To provide working capital, the  stores and services fund borrowed $800,000 from the general fund, to be paid back over 10 years  with no interest. The stores and services fund is expected to set user charges at a level that will  recover all expenses and provide cash for the repayment of the loan.  Data for the budget year are: Cost of supplies expected to be issued $4,000,000 Salaries 780,000 Utility expenses 20,000 Insurance and miscellaneous expenses 40,000 Capital assets used by the stores and services fund include a building that cost $200,000 and  had a 10-year life, and equipment that cost $100,000 and had a 5-year life. Straight-line  depreciation is to be used, with no salvage value. Required: a. Prepare a break-even budget for the city of Danville stores and services fund.  Include a markup  percentage, as a percentage of cost so that revenue will equal expenses. b. Record the issuance of supplies, costing $5,000, to the water utility fund. The perpetual inventory  system is used. Show computations in good form.  Copyright  © 2006 Cardean Learning Group LLC. All rights reserved.
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Assignment 3b: Practical Exercises                                              ACCT 311 Copyright  © 2006 Cardean Learning Group LLC. All rights reserved.
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Assignment 3b: Practical Exercises                                              ACCT 311 2. The city of West Bend decided to establish an internal service fund to account for the operations  of a print shop. The print shop began operations on July 1, 2004, the first day of the city's fiscal 
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  • Fall '08
  • JohnMalone
  • Accounting, Cardean Learning Group, Cardean Learning Group LLC., Practical Exercises                                             ACCT, Learning Group LLC.

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