Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Journal entries and financial statements for an Enterprise Fund The Metro Central Railroad is a commuter railroad that stops at the Village of Kelly. Kelly,
Journal entries and financial statements for an Enterprise Fund 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, known as the Kelly Metro Parking Fund, because the activity will be financed with debt secured solely by pledge of the facilitys net revenues from parking fees. The following transactions and events occurred in : Receives $ from the sale of revenue bonds at par. The revenue bonds were sold on July They mature at the rate of $ a year over a period of years, starting July Interest on the bonds is payable annually, also starting July at percent per annum on the outstanding debt. Pays $ to acquire a vacant lot near the railroad station. Pays $ to construct the parking lot. The lot is completed and ready for opening as of December Accrues interest for months on the serial bonds. Interest expense is not capitalized. Receives an invoice for $ from the Village of Kelly General Fund for all expenses incurred in financing and planning for constructing the parking lot. Based on the foregoing transactions and events, the Kelly Metro Parking Fund starts calendar year with the following trial balance: Metro Central Railroad Trial Balance December Debit Credit Land $ Parking lot Accrued interest payable $ Due to General Fund Revenue bonds payable Net position Totals $ $ The following transactions occurred in : Receives cash from parking fees in the amount of $ Receives cash of $ in December from parking lot customers who paid in advance for parking space for the month of January Pays the amount due at the start of the year to the General Fund. Pays the following expenses: salaries $; insurance $; utilities $ Pays the first installment of principal and interest on the revenue bonds, due July Accrues interest on the revenue bonds as of December Records one years depreciation on the parking lot. The parking lot has been estimated to have a useful life of years. Please complete the statement of revenues, expenses, and changes in net position for and the Prepare a statement of net position as of December
Journal entries and financial statements for an Enterprise Fund
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, known as the Kelly Metro Parking Fund, because the activity will be financed with debt secured solely by pledge of the facilitys net revenues from parking fees.
The following transactions and events occurred in :
Receives $ from the sale of revenue bonds at par. The revenue bonds were sold on
July They mature at the rate of $ a year over a period of years, starting
July Interest on the bonds is payable annually, also starting July at percent per annum
on the outstanding debt.
Pays $ to acquire a vacant lot near the railroad station.
Pays $ to construct the parking lot. The lot is completed and ready for opening as of
December
Accrues interest for months on the serial bonds. Interest expense is not capitalized.
Receives an invoice for $ from the Village of Kelly General Fund for all expenses incurred
in financing and planning for constructing the parking lot.
Based on the foregoing transactions and events, the Kelly Metro Parking Fund starts calendar year
with the following trial balance:
Metro Central Railroad
Trial Balance
December
Debit Credit
Land $
Parking lot
Accrued interest payable $
Due to General Fund
Revenue bonds payable
Net position
Totals $ $
The following transactions occurred in :
Receives cash from parking fees in the amount of $
Receives cash of $ in December from parking lot customers who paid in advance
for parking space for the month of January
Pays the amount due at the start of the year to the General Fund.
Pays the following expenses: salaries $; insurance $; utilities $
Pays the first installment of principal and interest on the revenue bonds, due July
Accrues interest on the revenue bonds as of December
Records one years depreciation on the parking lot. The parking lot has been estimated to have a useful
life of years.
Please complete the statement of revenues, expenses, and changes in net position for and the Prepare a statement of net position as of December
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started