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The City of Carefree voted to establish an internal service fund to account for its printing services. The City transferred $500,000 cash from the General Fund to the newly created internal service fund.
10) The appropriate entry in the general fund to account for this transfer would be a credit to cash for $500,000 and a debit for $500,000 toa) Due from Internal Service Fund.b) Transfer Out.c) Expenditures.d) Investment in Internal Service Fund.
11) The appropriate entry in the internal service fund is a debit to cash for $500,000 and a credit for $500,000 toa) Due to General Fund.b) Transfer In.c) Capital Contribution (Revenues).d) Investment provided by the General Fund.
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