CHAPTER 17 WILEY HOMEWORK SOLTIONS ACCOUNTING
ANSWERS TO EXERCISES
Exercise 17-3 (Interfund Transactions)
Part A
1. Interfund loan
Special Revenue Fund
Advance to Internal Service Fund 8,000
Cash 8,000
Internal Service Fund
Cash 8,000
Advance from Special Revenue Fund 8,000
[Instructor Note: Interfund Loans are classified as an “Advance”]
2. Interfund service provided and used
Internal Service Fund
Due From Special Revenue Fund 20,000
Revenue 20,000
Special Revenue Fund
Expenditures 20,000
Due to Internal Service Fund 20,000
3. Interfund Reimbursement
General Fund
Due From Debt Service Fund 14,000
Cash 14,000
Debt Service Fund
Expenditures 14,000
Due to General Fund 14,000
4. Interfund Transfer
Capital Projects Fund
OFU – Residual Equity Transfer to General Fund 65,000
Cash 65,000
General Fund
Cash 65,000
OFS – Residual Equity Transfer From CPF 65,000
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, Exercise 17–3 (continued)
5. Interfund Transfer
Trust Fund
OFU – Transfer to Special Revenue Fund 35,000
Cash 35,000
Special Revenue Fund
Cash
OFS – Transfer from Trust Fund 35,000
35,000
6. Interfund Transfer
General Fund
OFU – Transfer to Internal Service Fund 100,000
Cash 100,000
Internal Service Fund
Cash 100,000
Contributions from General Fund 100,000
Part B
Residual equity transfers represent non-recurring transfers while operating transfers consist
of recurring transfers between funds for the purpose of shifting resources from the fund
legally required to record the revenue to the fund legally required to expend the revenue.
Both types of transfers are reported as “other financial uses or sources on the Statement of
Revenues, Expenditures and Changes in Fund Balance.
Exercise 17–4
1. Government-Wide Statement of Net Position
Land ($8,000 x 100) 800,000
Revenue from Donations 800,000
2. General Fund
OFU –Transfer to Capital Projects Fund 100,000
Cash 100,000
Capital Projects Fund
Cash 1,000,000
OFS – Bond Issue Proceeds 1,000,000
Cash 100,000
OFS – Transfer From General Fund 100,000
Government-Wide Statement of Net Position
Cash 1,000,000
Bonds Payable 1,000,000
18 - 2
ANSWERS TO EXERCISES
Exercise 17-3 (Interfund Transactions)
Part A
1. Interfund loan
Special Revenue Fund
Advance to Internal Service Fund 8,000
Cash 8,000
Internal Service Fund
Cash 8,000
Advance from Special Revenue Fund 8,000
[Instructor Note: Interfund Loans are classified as an “Advance”]
2. Interfund service provided and used
Internal Service Fund
Due From Special Revenue Fund 20,000
Revenue 20,000
Special Revenue Fund
Expenditures 20,000
Due to Internal Service Fund 20,000
3. Interfund Reimbursement
General Fund
Due From Debt Service Fund 14,000
Cash 14,000
Debt Service Fund
Expenditures 14,000
Due to General Fund 14,000
4. Interfund Transfer
Capital Projects Fund
OFU – Residual Equity Transfer to General Fund 65,000
Cash 65,000
General Fund
Cash 65,000
OFS – Residual Equity Transfer From CPF 65,000
18 - 1
, Exercise 17–3 (continued)
5. Interfund Transfer
Trust Fund
OFU – Transfer to Special Revenue Fund 35,000
Cash 35,000
Special Revenue Fund
Cash
OFS – Transfer from Trust Fund 35,000
35,000
6. Interfund Transfer
General Fund
OFU – Transfer to Internal Service Fund 100,000
Cash 100,000
Internal Service Fund
Cash 100,000
Contributions from General Fund 100,000
Part B
Residual equity transfers represent non-recurring transfers while operating transfers consist
of recurring transfers between funds for the purpose of shifting resources from the fund
legally required to record the revenue to the fund legally required to expend the revenue.
Both types of transfers are reported as “other financial uses or sources on the Statement of
Revenues, Expenditures and Changes in Fund Balance.
Exercise 17–4
1. Government-Wide Statement of Net Position
Land ($8,000 x 100) 800,000
Revenue from Donations 800,000
2. General Fund
OFU –Transfer to Capital Projects Fund 100,000
Cash 100,000
Capital Projects Fund
Cash 1,000,000
OFS – Bond Issue Proceeds 1,000,000
Cash 100,000
OFS – Transfer From General Fund 100,000
Government-Wide Statement of Net Position
Cash 1,000,000
Bonds Payable 1,000,000
18 - 2
