In order to get a good rating, please explain how you arrived at each answer Thank you P 9 1 Enterprise funds are accounted for like comparable businesses nevertheless, they have their quirks The Green Hills Water District was established on January 1 to provide water service to a suburban development It accounts for its operations in a single enterprise fund During the year it engaged in the following transactions It issued $6,000,000 of revenue bonds For $4,500,000, it purchased the plant and equipment of the private water company that previously served the area It incurred $500,000 in costs to improve and expand its plant and equipment It billed customers for $1 8 million, of which it collected $1 5 million It billed and collected $200,000 in tap connection fees from developers The actual cost of the hookups (paid in cash) was $140,000 It incurred the following operating costs (all paid in cash) Purchases of water, $850,000 Labor and contract services, $320,000 Interest, $80,00 Supplies and miscellaneous, $60,000 It recognized depreciation of $350,000 on its capital assets Prepare journal entries to record the transactions Prepare a year end statement of revenues, expenses, and changes in net position Prepare a year end balance sheet In some jurisdictions, water districts may account for their operations entirely in an enterprise fund or in several funds, as if they were full service governments If a water district chose the latter, then it would report all revenues and operating expenditures in its general fund, and it would maintain other funds as appropriate Describe briefly how the financial statements of the Green Hills Water District would differ if it chose to prepare its financial statements as if it were a full service government Be specific (note changes in capital assets, long term debt, etc )

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In order to get a good rating, please explain how you arrived at each answer. Thank you. P. 9-1 Enterprise funds are accounted for like

In order to get a good rating, please explain how you arrived at each answer. Thank you.

P. 9-1

Enterprise funds are accounted for like comparable businesses; nevertheless, they have their quirks.

The Green Hills Water District was established on January 1 to provide water service to a suburban development. It accounts for its operations in a single enterprise fund. During the year it engaged in the following transactions:

It issued $6,000,000 of revenue bonds.
For $4,500,000, it purchased the plant and equipment of the private water company that previously served the area.
It incurred $500,000 in costs to improve and expand its plant and equipment.
It billed customers for $1.8 million, of which it collected $1.5 million.
It billed and collected $200,000 in tap connection fees from developers. The actual cost of the hookups (paid in cash) was $140,000.
It incurred the following operating costs (all paid in cash):

Purchases of water, $850,000
Labor and contract services, $320,000
Interest, $80,00
Supplies and miscellaneous, $60,000

It recognized depreciation of $350,000 on its capital assets.

Prepare journal entries to record the transactions.
Prepare a year-end statement of revenues, expenses, and changes in net position.
Prepare a year-end balance sheet.
In some jurisdictions, water districts may account for their operations entirely in an enterprise fund or in several funds, as if they were full-service governments. If a water district chose the latter, then it would report all revenues and operating expenditures in its general fund, and it would maintain other funds as appropriate. Describe briefly how the financial statements of the Green Hills Water District would differ if it chose to prepare its financial statements as if it were a full-service government. Be specific (note changes in capital assets, long-term debt, etc.).