The Metro Central Railroad is a commuter railroad that stops at the Village of Kelly. Kelly,...
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The Metro Central Railroad is a commuter railroad that stops at the Village of Kelly. Kelly, a growing community, decides to construct and operate a parking lot near the railroad station to accommodate the needs of its citizens. The activities of the parking lot will be accounted for in an Enterprise Fund, a. Prepare journal entries for the following Kelly Metro Parking Fund transactiors and events during 2017: 1. Receives $5,000,000 from the sale of revenue bonds at par. The revenue bonds were sold on July 1, 2017. They mature at the rate of 5250,000 a year over a period of 20 years, starting July 1, 2018, Interest on the bonds is payable annually, also starting July 1, 2018, at 4 percent per annum on the outstanding debt 2. Pays $1.000,000 to acquire a vacant lot near the rairoad station. 3. Pays $4,000,000 to construct the parking lot. The lot is compieted and ready for opening as of December 31, 2017 4. Accrues interest for 6 months on the serial bonds. [interest expense is not capitalzed. 5. Recelves an invoke for s80.000 from the Village of Kelly General Fund for all expenses incurred in financing and planning for constructing the parking fot Based on the foregoine transactions and events, the Kelly Metro Parking Fund starts calendar year 2018 with the folowing trial bolance Based on the foregoing transactions and events, the Kelly Metro Parking Fund starts calendar year 2018 with the following trial balance: Debits Credits Land $1.000,000 Parkang lot 4.000.000 Accrued interest payable $ 100.000 Due to General Fund B0.000 Revenue bonds payable. 5.000,000 Net 180.000 $5.180,000 $5180,000 position Totals Ref. Description Debit Credit 1 3. 4 2. 5. b. Prepare journal entries to record the following transactions and events of the Kelly Metro Parking Fund for calendar year 2018. Then prepare a statement of revenues, expenses, and changes in net position for the year and a statement of net position as of December 31, 2018. 1. Receives cash from parking fees in the amount of $800,000. 2. Receives cash of s60,000 in December 2018 from parking lot customers who rent space for the month of January 2019. 3. Pays the amount due at the start of the year to the General Fund. 4. Pays the following expenses: salaries-$125,000; insurance-$20,000; utilities-$35,000. S. Pays the first installment of principal and interest on the revenue bonds, due July 1, 2018. 6. Accrues interest on the revenue bonds as of December 31, 2018. 7. Records one year's depreciation on the parking lot. The parking lot has been estimated to have a useful life of 20 years. Ref. Description Debit Credit 1 3. 4 Salaries expense Insurance expense Revenue bonds payable Interest expense 7. 2. Use a negative sign with your answer to indicate a negative net position. Otherwise do not use a negative sign with your answers. Village of Kelly Kelly Metro Parking Enterprise Fund Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended December 31, 2018 Operating revenues-parking fees Operating expenses: Salaries expense Insurance expense Utilities expense Depreciation expense Total operating expenses Operating income Nonoperating expenses: Interest expense Change in net position Net position: Beginning of year End of year Use a negative sign with your answer to indicate a negative net position. Otherwise do not use a negative sign with your answers. Village of Kelly Kelly Metro Parking Enterprise Fund Statement of Net Position December 31, 2018 Assets Current assets- cash Noncurrent assets Land Parking lot, net of accumulated depreciation Total assets Liabilities Current liabilities: Deferred rental income Accrued interest payable Current portion of revenue bonds payable Total cutrent liabilities Noncurrent liabilities: Long-term portion of revenue bonds payable Total labilities Net Position Netinvestment.io.caoitalaconts December 31, 2018 Assets Current assets - cash $4 Noncurrent assets: Land Parking lot, net of accumulated depreciation Total assets $4 Liabilities Current liabilities: Deferred rental income %$4 Accrued interest payable Current portion of revenue bonds payable Total current liabilities Noncurrent liabilities: Long-term portion of revenue bonds payable Total liabilities Net Position Net investment in capital assets Unrestricted net position Total net position %24 %24 %24 The Metro Central Railroad is a commuter railroad that stops at the Village of Kelly. Kelly, a growing community, decides to construct and operate a parking lot near the railroad station to accommodate the needs of its citizens. The activities of the parking lot will be accounted for in an Enterprise Fund, a. Prepare journal entries for the following Kelly Metro Parking Fund transactiors and events during 2017: 1. Receives $5,000,000 from the sale of revenue bonds at par. The revenue bonds were sold on July 1, 2017. They mature at the rate of 5250,000 a year over a period of 20 years, starting July 1, 2018, Interest on the bonds is payable annually, also starting July 1, 2018, at 4 percent per annum on the outstanding debt 2. Pays $1.000,000 to acquire a vacant lot near the rairoad station. 3. Pays $4,000,000 to construct the parking lot. The lot is compieted and ready for opening as of December 31, 2017 4. Accrues interest for 6 months on the serial bonds. [interest expense is not capitalzed. 5. Recelves an invoke for s80.000 from the Village of Kelly General Fund for all expenses incurred in financing and planning for constructing the parking fot Based on the foregoine transactions and events, the Kelly Metro Parking Fund starts calendar year 2018 with the folowing trial bolance Based on the foregoing transactions and events, the Kelly Metro Parking Fund starts calendar year 2018 with the following trial balance: Debits Credits Land $1.000,000 Parkang lot 4.000.000 Accrued interest payable $ 100.000 Due to General Fund B0.000 Revenue bonds payable. 5.000,000 Net 180.000 $5.180,000 $5180,000 position Totals Ref. Description Debit Credit 1 3. 4 2. 5. b. Prepare journal entries to record the following transactions and events of the Kelly Metro Parking Fund for calendar year 2018. Then prepare a statement of revenues, expenses, and changes in net position for the year and a statement of net position as of December 31, 2018. 1. Receives cash from parking fees in the amount of $800,000. 2. Receives cash of s60,000 in December 2018 from parking lot customers who rent space for the month of January 2019. 3. Pays the amount due at the start of the year to the General Fund. 4. Pays the following expenses: salaries-$125,000; insurance-$20,000; utilities-$35,000. S. Pays the first installment of principal and interest on the revenue bonds, due July 1, 2018. 6. Accrues interest on the revenue bonds as of December 31, 2018. 7. Records one year's depreciation on the parking lot. The parking lot has been estimated to have a useful life of 20 years. Ref. Description Debit Credit 1 3. 4 Salaries expense Insurance expense Revenue bonds payable Interest expense 7. 2. Use a negative sign with your answer to indicate a negative net position. Otherwise do not use a negative sign with your answers. Village of Kelly Kelly Metro Parking Enterprise Fund Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended December 31, 2018 Operating revenues-parking fees Operating expenses: Salaries expense Insurance expense Utilities expense Depreciation expense Total operating expenses Operating income Nonoperating expenses: Interest expense Change in net position Net position: Beginning of year End of year Use a negative sign with your answer to indicate a negative net position. Otherwise do not use a negative sign with your answers. Village of Kelly Kelly Metro Parking Enterprise Fund Statement of Net Position December 31, 2018 Assets Current assets- cash Noncurrent assets Land Parking lot, net of accumulated depreciation Total assets Liabilities Current liabilities: Deferred rental income Accrued interest payable Current portion of revenue bonds payable Total cutrent liabilities Noncurrent liabilities: Long-term portion of revenue bonds payable Total labilities Net Position Netinvestment.io.caoitalaconts December 31, 2018 Assets Current assets - cash $4 Noncurrent assets: Land Parking lot, net of accumulated depreciation Total assets $4 Liabilities Current liabilities: Deferred rental income %$4 Accrued interest payable Current portion of revenue bonds payable Total current liabilities Noncurrent liabilities: Long-term portion of revenue bonds payable Total liabilities Net Position Net investment in capital assets Unrestricted net position Total net position %24 %24 %24
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Related Book For
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
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