Delight City Bus System is accounted for in an enterprise fund/TUTORI Delight City Bus System is accounted for in an ent | Page 2

1. The general fund made an initial cash contribution of $35,000 to
the internal service fund.
2. The Edgerton County duplication service center purchased copiers
that were accounted for as Equipment and paid cash in the amount of
$70,000.
3. The Edgerton County duplication service center borrowed
$270,000 from a local bank to finance the purchase of additional
equipment and renovation of its facilities. It issued a three-year note.
4. The Edgerton County duplication service center purchased the
equipment for $160,000 and paid contractors $100,000 for
improvements to its facilities – cash was paid.
5. The Edgerton County duplication service center billed the county
clerk’s office $5,000 for printing services; the duplication service
center then received $2,500 cash from the county clerk’s office.
6. The Edgerton County duplication service center incurred and paid
in cash operating expenses for $9,000.
7. The Edgerton County duplication service center recognized
depreciation in the amount of $1,500 on its equipment and recognized
depreciation in the amount of $900 on the improvements to its
facilities.
Required:
a. Prepare journal entries in the internal service fund.
b. Which financial statements would be required for Edgerton County
duplication service center for the year ended July 31, 2015? State the
titles and show the general format of the classifications that would be
reported in each of the required financial statement.