Chapter 7 - 7-3.TOWN OF FREDERICKSBURGCENTRAL DUPLICATING...

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Unformatted text preview: 7-3.TOWN OF FREDERICKSBURGCENTRAL DUPLICATING FUNDGENERAL JOURNAL(NOT REQUIRED)DebitsCredits1.WAGE EXPENSE333,500PAYROLL TAX EXPENSE23,375CASH290,000DUE TO FEDERAL GOVERNMENT66,8752.DUE TO FEDERAL GOVERNMENT65,500CASH65,5003.UTILITY EXPENSE23,500DUE TO OTHER FUNDS23,5004.OFFICE EXPENSES10,500CASH10,5005.SERVICE SUPPLIES INVENTORY157,500ACCOUNTS PAYABLE157,5006.COST OF PARTS AND SUPPLIES USED152,300SERVICE SUPPLIES INVENTORY152,3007.DUE FROM OTHER FUNDS588,000BILLINGS TO DEPARTMENTS588,000Ch. 7, Solutions, 7-3 (Cont'd)DebitsCredits8.CASH578,200DUE FROM OTHER FUNDS578,200(20,200 + 588,000 - 30,000)9.DUE TO OTHER FUNDS21,800CASH21,80010.ACCOUNTS PAYABLE 156,950CASH156,950(12,700 + 157,500 - 13,250)11.DEPRECIATION OF MACHINERY ANDEQUIPMENT30,000ALLOWANCE FOR DEPRECIATION30,00012.Closing Entries:BILLINGS TO DEPARTMENTS588,000WAGE EXPENSE333,500PAYROLL TAX EXPENSE23,375UTILITY EXPENSE23,500OFFICE EXPENSES10,500COST OF PARTS AND SUPPLIES USED152,300DEPRECIATION OF MACHINERY AND EQUIPMENT30,000OPERATING INCOME14,825Ch. 7, Solutions, 7-3 (Cont'd)DebitsCreditsOPERATING INCOME14,825NET ASSETSUNRESTRICTED14,825NET ASSETSINVESTED IN CAPITAL ASSETS30,000NET ASSETSUNRESTRICTED30,000Ch. 7, Solutions, 7-3 (Cont'd)TOWN OF FREDERICKSBURGT- ACCOUNTS FOR CENTRAL DUPLICATING FUND(NOT REQUIRED)CASH DUE FROM OTHER FUNDS9-30-1015,000(1) 290,0009-30-10 20,200 (8) 578,200(8)578,200(2) 65,500(7) 588,000(4) 10,500(9) 21,800(10) 156,950SERVICE SUPPLIES INVENTORY MACHINERY AND EQUIPMENT9-30-1035,300(6) 152,3009-30-10300,000(5)157,500ALLOW FOR DEPMACH & EQUIP9-30-10 90,000(11) 30,000ACCOUNTS PAYABLE DUE TO FEDERAL GOVERNMENT(10)156,9509-30-10 12,700(2) 65,5009-30-10 1,500(5) 157,500(1) 66,875DUE TO OTHER FUNDS NET ASSETSUNRESTRICTED(9) 21,8009-30-10 8009-30-10 55,500(3) 23,500C.L. 14,825C.L. 30,000NET ASSETSINVESTED IN CAP. ASSETS BILLINGS TO DEPARTMENTSC.L.30,000 9-30-10 210,000CL. 588,000(7) 588,000WAGE EXPENSE PAYROLL TAX EXPENSE(1)333,500CL. 333,500(1) 23,375CL. 23,375UTILITY EXPENSE COST OF PARTS AND SUPPLIES USED(3)23,500CL. 23,500(6) 152,300CL. 152,300DEPRECIATION OF MACH. AND EQUIP. OFFICE EXPENSES(11)30,000CL. 30,000(4) 10,500CL. 10,500OPERATING INCOMECL. 14,825CL. 14,825Ch. 7, Solutions, 7-3 (Cont'd)7-3. a.TOWN OF FREDERICKSBURGCENTRAL DUPLICATING FUNDSTATEMENT OF REVENUES, EXPENSES, ANDCHANGES IN FUND NET ASSETSFOR YEAR ENDED SEPTEMBER 30, 2011BILLINGS TO DEPARTMENTS$588,000OPERATING EXPENSES:WAGE EXPENSE$333,500PAYROLL TAX EXPENSE23,375OFFICE EXPENSES10,500UTILITY EXPENSE23,500PARTS AND SUPPLIES USED152,300DEPRECIATION OF MACHINERYAND EQUIPMENT30,000TOTAL OPERATING EXPENSES573,175OPERATING INCOME14,825NET ASSETS, OCTOBER 1, 2010265,500NET ASSETS, SEPTEMBER 30, 2011$280,325b. On the basis of the operating statement for the year ended September 30, 2011, the pricing policy is achieving the goal of covering all operating expenses, including depreciation. The net income for the year is 2.52 percent of billings to departments, under the 3 percent maximum set for this fund.Ch. 7, Solutions, 7-3 (Cont'd)Ch....
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This note was uploaded on 07/19/2011 for the course ACCOUNT 346 taught by Professor Bino during the Spring '11 term at Rutgers.

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Chapter 7 - 7-3.TOWN OF FREDERICKSBURGCENTRAL DUPLICATING...

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