Advanced Governmental and Non-profits Accounting

Enterprise fund Worksheet

Case2: The town of Haiku has permitted the establishment of the water Utility Enterprise Fund to operate without legal formal approval of their budget and the following transactions have taken place as of January 1, the Year 2015.

1. On January 1, year 1, billings from the town of Haiku water Utility fund from sales of water Utility services of the previous fiscal year amounting to 14,800 that accrued has been recorded.
2. During 2015, the total bills to non-governmental customers amounted to 696,000. Bills to the Town General Fund amounted to 30,000 and all Revenue was from sales of water.
3. Collections from Nongovernmental customers for Water Billings totaled 680,000.
4. Materials and supplies in the amount of 138,000 were purchased during the year by the Water Utility fund on the account.
5. Materials and supplies Chargeable to the accounts itemized below were issued during the year. Source of Supply=,000, Transmission & distribution=13,000. Pumping=21,000, Construction work in progress=66,000 and Water Treatment= 24,000
6. Payrolls for the year were chargeable to the accounts given below. After deducting the necessary tax collections, checks have been given to the employees net earnings; Source of Supply=8,200 , Sales =17,250, Pumping=15,700 ,Tax collected=51,750, Water treatment=17,500, Taxes Accrued=13,800, Construction work in progress=30,400, Customer account=96,550,Administrative and General=83,150 and Transmission and distribution=76,250
7. Interest on the bond in the amount of 105,000 was paid. The bonds were issued to finance the acquisition of the Utility plant asset. Amortization of Debt Discount and Expense amounted to 530.
8. Bond Interest during the period of construction, net of any interest earned on the temporary investment of bond proceeds, amounted to 12,900; this amount was charged to construction.
9. Construction projects on which costs totalled 220,000 were completed and the assets placed in the service:
10. Collection efforts were discontinued on bills totaling 3,410. The customers owing the bills had paid deposits to the water Utility totaling 2,140. The deposits were applied to the bills and the unpaid remainder was charged to allowance for uncollectable accounts.
11. Customer deposits amounting to 1,320 were refunded by check to customers discontinuing service. Deposits totaling 2,525 were received from new customers.
12. Customer Advances for Construction in the amount of 14,000 were applied to their water bills. In accordance with the agreement with the customers, the remainder of the advances were transferred to contributions from Customers.
13. Payments of account payable for materials and supplies used in operations totaled 67,200, and payment of Account Payable for material used in construction totaled 66,000. Payment of taxes accrued amounted to 13,500 and payments of Taxes Collection Payable amounted to 50,000.
14. The Water Utility fund agreed to pay 25,000 to the town General Fund as a contribution in lieu of Property Taxes.
15. At year-end entries to record Depreciation Expense in the amount of 91,700; The Amortization of the Plant Acquisition Adjustment in the amount of 11,050; Allowance for Uncollectable Accounts in the amount of 3,980; and Unbilled Customer Accounts in the Amount of 15,920 have been made.
16. In accordance with the Revenue Bonds Indenture, 100,000 amounts of cash were transferred to the Special Funds category. The transfer requires an appropriation of Retained Earnings of an equal amount.
17. Nominal accounts at the end of the year were closed.

Required: Prepare necessary journal and closing entries & financial reports

Advanced Governmental and Non-profits Accounting

Enterprise fund Worksheet

Case2: The town of Haiku has permitted the establishment of the water Utility Enterprise Fund to operate without legal formal approval of their budget and the following transactions have taken place as of January 1, the Year 2015.

1. On January 1, year 1, billings from the town of Haiku water Utility fund from sales of water Utility services of the previous fiscal year amounting to 14,800 that accrued has been recorded.
2. During 2015, the total bills to non-governmental customers amounted to 696,000. Bills to the Town General Fund amounted to 30,000 and all Revenue was from sales of water.
3. Collections from Nongovernmental customers for Water Billings totalled 680,000.
4. Materials and supplies in the amount of 138,000 were purchased during the year by the Water Utility fund on the account.
5. Materials and supplies Chargeable to the accounts itemized below were issued during the year. Source of Supply=,000, Transmission & distribution=13,000. Pumping=21,000, Construction work in progress=66,000 and Water Treatment= 24,000
6. Payrolls for the year were chargeable to the accounts given below. After deducting the necessary tax collections, checks have been given to the employees net earnings; Source of Supply=8,200 , Sales =17,250, Pumping=15,700 ,Tax collected=51,750, Water treatment=17,500, Taxes Accrued=13,800, Construction work in progress=30,400, Customer account=96,550,Administrative and General=83,150 and Transmission and distribution=76,250
7. Interest on the bond in the amount of 105,000 was paid. The bonds were issued to finance the acquisition of the Utility plant asset. Amortization of Debt Discount and Expense amounted to 530.
8. Bond Interest during the period of construction, net of any interest earned on the temporary investment of bond proceeds, amounted to 12,900; this amount was charged to construction.
9. Construction projects on which costs totalled 220,000 were completed and the assets placed in the service:
10. Collection efforts were discontinued on bills totalling 3,410. The customers owing the bills had paid deposits to the water Utility totalling 2,140. The deposits were applied to the bills and the unpaid remainder was charged to allowance for uncollectable accounts.
11. Customer deposits amounting to 1,320 were refunded by check to customers discontinuing service. Deposits totalling 2,525 were received from new customers.
12. Customer Advances for Construction in the amount of 14,000 were applied to their water bills. In accordance with the agreement with the customers, the remainder of the advances were transferred to contribution from Customers.
13. Payments of account payable for materials and supplies used in operations totalled 67,200, and payment of Account Payable for material used in construction totalled 66,000. Payment of taxes accrued amounted to 13,500 and payments of Taxes Collection Payable amounted to 50,000.
14. The Water Utility fund agreed to pay 25,000 to the town General Fund as a contribution in lieu of Property Taxes.
15. At year-end entries to record Depreciation Expense in the amount of 91,700; The Amortization of the Plant Acquisition Adjustment in the amount of 11,050; Allowance for Uncollectable Accounts in the amount of 3,980; and Unbilled Customer Accounts in the Amount of 15,920 have been made.
16. In accordance with the Revenue Bonds Indenture, 100,000 amounts of cash were transferred to the Special Funds category. The transfer requires an appropriation of Retained Earnings of an equal amount.
17. Nominal accounts at the end of the year were closed.

Required: Prepare necessary journal and closing entries & financial reports