G The Village of Lake George decided to establish an internal service fund to account for the operations of a Print Shop. The Print Shop is to begin operations on July 1, 2016 the first day of the City's fiscal year. During the fiscal year ended June 30, 2017 the following transactions occurred: (a) The General Fund made a permanent contribution of $400,000 and a long-term advance of $800,000 to the Print Shop Fund. The advance is to be repaid by the Print Shop Fund in four equal annual installments; the first installment is due 6/30/2017. The advance is non-interest bearing and is considered issued for the purchases of equipment. (b) During the year equipment was purchased (for cash) in the amount of $ 890,000. (c) During the year, printing supplies costing $120,000 were purchased; all but $30,000 was paid in cash. (d) Billings to departments during the

Check the explanation

Explanation:

 General Journal    

Ref.  Account Title & explanation          Debit              Credit

a)                Cash                               $1,200,000    

                      Contribution                                             $400,000

                  Long term liability                                    $800,000

            (To record receipt of fund )      

b)              Equipment                        $890,000    

                             Cash                                             $890,000

              (To record purchase of equipment)      

c)                Supplies                              $120,000    

                      Accounts payable                               $30,000

                             Cash                                               $90,000

           (To record purchase of supplies)      

d)                  Cash                                   $350,000

                     Accounts receivable                  $50,000    

                             Sales                                             $400,000

                  (To record sales )      

e)        Supplies expenses                     $73,000    

                             Supplies                                               $73,000

              (To record supllies expenses)      

f)         Salaries and wages expenses      $19,000    

                                 Cash                                                $19,000

          (To record salaries and wages expenses)    

 Utilities expenses                                              $3,000    

 Cash                                                                                $3,000    

 (To record utilities expenses)      

g)  Depreciation expenses                        $80,000    

 Accumulated depreciation-Equipment                          $80,000

     (To record depreciation expenses)      

h)  Long term liability                               $200,000    

                    Cash                                                    $200,000    

 (To record payment of instalment of advance)    

Ref.  CASH ACCOUNT  Debit  Credit    

a)  Contribution  $400,000    

a)  Long term liabilities  $800,000    

b)  Equipment  $890,000    

c)  Supplies  $90,000    

d)  Sales  $350,000    

f)  Salaries & wages expenses  $19,000    

f)  Utilities expenses  $3,000    

h)  Long term liabilities  $200,000    

 Balance  $348,000    

 TOTAL  $1,550,000  $1,550,000    

 Closing balance brought forward  $348,000    

 TRIAL BALANCE      

 Account  Debit  Credit    

 Cash  $348,000    

 Contribution  $400,000    

 Long term liabilities  $600,000    

 Equipment  $890,000    

 Supples  $        47,000  (120000-73000)  

 Accounts payable  $30,000    

 Accounts receivable  $50,000    

 Sales  $400,000    

 Supplies expenses  $73,000    

 Salaries and wages expenses  $19,000    

 Utilities expenses  $3,000    

 Depreciation expenses  $80,000    

 Accumulated depreciation-equipment  $80,000    

 TOTAL  $1,510,000  $1,510,000    

 INCOME STATEMENT      

 Contribution  $400,000    

 Sales  $400,000    

 Total income  $800,000    

 Expenses:      

 Supplies expenses  $73,000    

 Salaries and wages expenses  $19,000    

 Utilities expenses  $3,000    

 Depreciation expenses  $80,000    

 Total expenses  $175,000    

 Net Income  $625,000    

 BALANCE SHEET      

 ASSETS:      

 Cash  $348,000    

 Supples  $        47,000    

 Accounts receivable  $50,000    

 Equipment  $890,000    

 Accumulated depreciation  ($80,000)    

 Total assets  $1,255,000    

 Liabilities:      

 Accounts payable  $30,000    

 Long term liabilities  $600,000    

 Net assets  $625,000    

 Total Liabilities & net assets  $1,255,000  

jchcghfjvhvhhjhj

answer; ///i believe the correct   answer is (e) transformational;