Internal service fund activities conducted with departments accounted for in governmental funds are reported differently than are those conducted with departments accounted for in proprietary funds.

The following data relate to the City of Spicewood's data processing internal service fund:

Billings to police and fire departments     $ 800,000

Billings to water utility department           $ 200,000

Year-end receivable from police and fire departments      $ 80,000

Year-end receivable from water utility department            $ 12,000

Net position other than receivables from other departments        $1,300,000

The police and fire departments are accounted for in the general fund. Their activities are classified as “public safety.” The water utility department is accounted for in a proprietary fund. The internal service fund establishes billing rates at amounts reflective of the actual costs of providing its services.

Explain how each of the indicated amounts (and the related expenses and payables of the funds receiving the services provided by the data processing department) would be reported in the city's government-wide statement of net position and statement of activities. Be specific.

Reference: Reference: Granof, M. H., Khumawala, S.B., Calabrese, T.D., Smith, D.L. (2016) Government and Not-For-Profit Accounting: Concepts and Practices, 7th Edition. Hoboken, NJ: John Wiley & Sons - Chapter 9.