Cpa-79690 (f-09-04: transactions and events: part 2)the city of curtain had the following interfund transactions during the month of may: billing by the internal service fund to a department financed by the general fund, for services rendered in the amount of $5,000.transfer of $200,000 from the general fund to establish a new enterprise fund.routine transfer of $50,000 from the general fund to the debt service fund. what was the total reciprocal interfund activity for curtain during may? a) $5,000b) $55,000c) $200,000d) $255,00

A. $5,000

Explanation:

Reciprocal interfund activity includes interfund loans and interfund services provided and used. Nonreciprocal transfers include interfund transfers to establish a new fund and routine interfund reimbursements.

Billing by the internal service fund to a department financed by the general fund for services rendered for $5,000 is the only transaction meeting the definition of a reciprocal interfund activity.

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