Question

A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $1,100,000; and (2) a transfer from the General Fund to a special revenue fund in the amount of $500,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be: $0. $500,000. $1,100,000. $1,600,000.

Answer 1

Answer:

The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:

= $0.

Explanation:

a) Data and Calculations:

Transfer from the General Fund to a debt service fund = $1,100,000

Transfer from the General Fund to a special revenue fund = $500,000

Transfer out = $0

b) The transfers of $1,100,000 to the Debt Service Fund and $500,000 to the Special Revenue Fund are Internal Service funds involving governmental activities.  They are unlike enterprise funds that reach the control of the government's internal services.  In this case, therefore, there is no transfer out, as the transfers were within or internal.