Enterprise Fund Transactions Frederick County, Maryland maintains a sewer enterprise fund, which charges citizens for sewer fees, and opening (or "tapping") new sewer lines. Suppose the following activities occur: 1. Residents are billed for $55,000 of sewer charges; a total of $52,000 is collected. 2. Sewer supplies of $25,000 are purchased; $10,000 is paid in cash, and the balance is still outstanding. 3. Capital improvements totaling $250,000 are made to existing sewer facilities. The improvements are financed by issuing a long-term note payable. 4. Newly constructed homes are charged $5,500 for tap-in fees, to access sewer lines. Payment is received in cash. 5. Semiannual interest of $25,000 and principal of $50,000 is paid on the note from #3. Required Record the above events in an enterprise fund. Ref. Description Debit Credit Accounts receivable Sewer revenues To record sewer billings Cash Accounts receivable OX To record sewer collections. 2 Sewer supplies 1 OX 0 > OX Cash OX 3 OX OX 4 Accounts payable To record purchase of sewer supplies. Captial assets Notes payable To record purchase of capital assets, Cash Sewer tap-in fee revenue To record charges for sewer tap in fees. Interest expense Notes payable Cash To record payment of note payable interest and principal. 5 0