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City of Bingham Chapter 7 Help Hello, I need assistance with my Bingham Assignment. I will include the instructions as well as my answers so

City of Bingham Chapter 7 Help

Hello, I need assistance with my Bingham Assignment. I will include the instructions as well as my answers so far. I ONLY NEED HELP WITH (7-B-17A), (7-B-17B), AND 7-B-17C). I took off the closing entry part. I can do them myself

Chapter 7 Recording Transactions Affecting the Enterprise Fund and Business-Type Activities

The city water utility is owned and operated by the City of Bingham. The water utility was originally constructed and operated by a private corporation, but it was sold to the city 30 years before the year for which transactions are given. The post-closing trial balance of the Water Utility Fund, as of December 31, 2016, follows:

CITY OF BINGHAM

Water Utility Fund

Trial Balance

AsofDecember 31, 2016

Debits Credits

Cash $ 513,395

Restricted CashCustomer Deposits 62,920

Customer Accounts Receivable 176,484

Accumulated Provision for

Uncollectible Accounts $ 5,192

Inventory of Supplies 103,560

Due from Other Funds 14,300

Utility Plant in Service 20,900,429

Accumulated Depreciation

Utility Plant 4,612,406

Construction Work in Progress 1,308,340

Vouchers Payable 81,662

Customer Deposits 62,920

Accrued Interest Payable 477,510

Revenue Bonds Payable 15,917,000

Unamortized Bond Discounts

on Revenue Bonds Payable 71,720

Net PositionNet Investmentin Capital

Assets 1,751,083

Net PositionUnrestricted 243,375

Totals $23,151,148 $23,151,148

Additional information:

The following information is provided about accounts shown on the December 31, 2016, trial balance:

Accrued Interest Payable represents six months accrual of interest on 6% revenue bonds payable. Interest is payable semiannually on January 1 and July 1 of each year. Unamortized Bond Discount is credited every six months for the amortization applicable to the interest payment period. Amortization is computed by the straight-line method. The balance of $71,720 is to be amortized over the remaining 20 years of the bond maturity.

Required

Open a general journal as of December 31, 2016 for the Water Utility Fund by entering each of the accounts and amounts shown in the above post-closing trial balance. Enter 2016 from the drop-down [Year] menu. Each of the account titles will be found in the drop down menu [Account (# - Description)] in the [Journal] view of the program. Be sure to enter 7-a as your paragraph number in the [Transaction Description] box and enter the appropriate paragraph number for all subsequent journal entries. Verify the accuracy of your journal entry and post it to the general ledger by clicking [Post Entries]. Unless your instructor specifies electronic submission, print a post-closing trial balance as of December 31, 2016, and retain it in your cumulative file until directed by your instructor to submit it.

Entries in this enterprise fund do not have to be recorded at the government-wide level since enterprise funds and business-type activities at the government-wide level both use the same (accrual) basis of accounting and same (economic resources) measurement focus. Thus, the same information recorded in the accounts of the enterprise fund can also, with only slight modification, be reported as business-type activities at the government-wide level.

Before closing the City of Bingham, click on [File], and [Save/Save As] to save your work.If you close the file by clicking on the [X] box you will be asked if you want to save your changes before closing.

b. Record the following events and transactions, which occurred during the year ended December 31, 2017. Be sure that 2017appears in the [Year] menu.

1. [Para. 7-b-1] Bond interest due on January 1, 2017 was paid to holders of the revenue bonds.

Accrued Interest Payable (Dr. 477,510)

Cash (Cr. 477,510)

2. [Para. 7-b-2] Billings to customers for water service for the year totaled $3,076,500. Billings to the City of Bingham General Fund for water service totaled $50,000.

Customer A/R (Dr. 3,076,500)

Due From other Funds (Dr. 50,000)

Sales of Water (Cr. 3,126,500)

3. [Para. 7-b-3] Collections from customers totaled $2,996,100; $14,300 was also received from the citys General Fund.

Cash (Dr. 3,010,400)

Customer A/R (Cr. 2,996,100)

Due From Other Funds (Cr. 14,300)

4. [Para. 7-b-4] A $625,000 contract was signed for a construction project expected to cost $970,000. Water utility employees will complete $345,000 of the project.

N/A

5. [Para. 7-b-5] Materials and supplies were ordered and received during the period in the amount of $610,500. The invoices agreed with the purchase orders and receiving reports and were recorded as vouchers payable. A perpetual inventory system is used for all materials and supplies.

Inventory of Supplies (Dr. 610,500)

V/P (Cr. 610,500)

6. [Para. 7-b-6] Payrolls were paid totaling $685,250 for operations; $155,400 for maintenance; and $170,500 for construction.

Operations Expense (Dr. 685,250)

Maintenance Expense (Dr. 155,400)

Construction Expense (Dr. 170,500)

Cash (Cr. 1,011,150)

7. [Para. 7-b-7] Materials and supplies issued during the period amounted to $255,000 for operations; $132,000 for maintenance; and $166,000 for construction.

Operations Expense (Dr. 255,000)

Maintenance Expense (Dr. 132,000)

Construction Expense (Dr. 166,000)

Inventory of Supplies (Cr. 553,000)

8. [Para. 7-b-8] Bond interest due on July 1, 2017was paid. As part of the journal entry, 1/40th of the Unamortized Bond Discount on Revenue Bonds Payable should be amortized.

Interest on L/T Debt (Dr. 479,303)

Unamortized Bond Discount (Cr. 1,793)

Cash (Cr. 477,510)

9. [Para. 7-b-9] Interest of $32,000 that was recorded as an expense was determined to have been incurred during construction and should becharged to Construction Work in Progress.

Construction Work in Progress (Dr. 32,000)

Interest on L/T Debt (Cr. 32,000)

10. [Para. 7-b-10] A progress billing for $385,000 was received from the construction contractor and paid.

Construction Work in Progress (Dr. 385,000)

Cash (Cr. 385,000)

11. [Para. 7-b-11] Some assets under construction at the start of the year and some started during the year were completed and placed in service. The costs incurred on this construction totaled $1,102,750.

Utility Plant in Service (Dr. 1,102,750)

Construction Work in Progress (Cr. 1,102,750)

12. [Para. 7-b-12] Collection efforts were discontinued on bills amounting to $5,150; the customers owing the bills had paid deposits and interest to the water utility in the amount of $1,450. (Note: Remember to adjust cash accounts for amounts no longer restricted.)

Customer Deposits (Dr. 1,450)

Accumulated Provisions for Uncoll Accounts (Dr. 3,700)

Customer A/R (Cr. 5,150)

Cash (Dr. 1,450)

Restricted Cash Customer Deposits (Cr. 1,450)

13. [Para. 7-b-13] Customer deposits and interest thereon amounting to $2,500 were applied to the final bills of customers discontinuing service. Additional deposits and interest amounting to $2,950 were refunded by check to customers discontinuing service. (Note: Remember to adjust cash accounts for amounts no longer restricted.)

Customer Deposits (Dr. 5,450)

Customer A/R (Cr. 2,500)

Restricted Cash Cust Deposits (Cr. 2,950)

14. [Para. 7-b-14] Deposits totaling $7,304 were received from new customers.

Restricted Cash Cust Deposits (Dr. 7,304)

Customer Deposits (Cr. 7,304)

15. [Para. 7-b-15] Vouchers Payable paid during the year amounted to $343,600 for operating supplies and $166,000 for materials used in construction, or $509,600 in total.

Vouchers Payable (Dr. 509,600)

Cash (Cr. 509,600)

16. [Para. 7-b-16] Interest paid on customer deposits amountedto $2,154 (charge Operation Expense). This interest was added to the customer deposit accounts, and the restricted cash and cash accounts were adjusted.

Operations Expense (Dr. 2,154)

Customer Deposits (Cr. 2,154)

Restricted Cash Customer Deposits (Dr. 2,154)

Cash (Cr. 2,154)

17. Adjusting entry - [Para. 7-b-17a] Depreciation on utility plant was calculated using a straight-line rate of 2 percent of the beginning gross balance (round charge to the nearest dollar).

[Para. 7-b-17b] The Accumulated Provision for Uncollectible Accounts should equal $5,820 at year-end.

[Para. 7-b-17c] An adjusting entry for accrual of six months interest on bonds payable and amortization of 1/40 of the debt discount using the straight-line basis was recorded.

After verifying the accuracy of all entries for the preceding transactions, post amounts to the general ledger accounts by clicking [Post Entries].

c. Prepare entries to close all operating statement accounts at the end of 2017 and to reclassify the two net position accounts, as appropriate. Be sure that the check mark for [Closing Entry] is on for each account being closed and that Closing Entry appears in the [Transaction Description] box

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