The Stores and Service Fund of the City of Monroe had the following account balances as of January 1, 2014:
Debits Credits Cash $17,000 Due from other funds 25,000 Inventory of supplies 35,000 Land 19,000 Buildings 82,000 Accumulated depreciation—buildings $21,500 Equipment 46,000 Accumulated depreciation—equipment 18,000 Accounts payable 13,500 Advance from water utility fund 30,000 Net position 141,000 Totals $224,000 $224,000
Required: a. Open a general journal for the City of Monroe Stores and Service Fund and record the following transactions.

(1) A budget was prepared for FY 2014. It was estimated that the price charged other departments for supplies should be 1.25% of cost to achieve the desired breakeven for the year.

(2) The amount due from other funds as of January 1, 2014, was collected in full.

(3) During the year, supplies were ordered and received in the amount of $302,000. This amount was vouchered.

(4) $10,000 of the advance from the Water Utility Fund, originally provided for construction, was repaid. No interest is charged.

(5) During the year, supplies costing $250,560 were issued to the General Fund, and supplies costing $46,400 were issued to the Water Utility Fund. These funds were charged based on the previously determined markup ($ 313,200 to General Fund and 58,000 to the Water Utility Fund).

(6) Operating expenses, exclusive of depreciation, were recorded in accounts payable as follows: Purchasing, $11,500; Warehousing, $16,000; Delivery, $17,500; and Administrative, $8,800.

(7) Cash was received from the General Fund in the amount of $300,000 and from the Water Utility Fund in the amount of $50,000.

(8) Accounts payable were paid in the amount of $357,000.

(9) Depreciation in the amount of $8,200 was recorded for buildings and $11,000 for equipment.
Continuous Problem – City of Monroe
10
b. Post the entries to the Stores and Service Fund ledger (t-accounts).
c. Prepare and post an entry closing all nominal accounts to Net Position. Compute the balance in the net position accounts, assuming there is no Restricted net position.