Answered step by step
Verified Expert Solution
Question
1 Approved Answer
P 7 - 4 ( Journal entries and financial statements for an Enterprise Fund ) The following transactions relate to the City of Arlington's Municipal
PJournal entries and financial statements for an Enterprise Fund
The following transactions relate to the City of Arlington's Municipal Airport Fund for the fiscal year ended June Prepare a the journal entries necessary to record these transactions in the Municipal Airport Fund; b a trial balance as of June ; c a statement of revenues, expenses, and changes in net position for the fiscal year, and d a statement of net position as of June
The General Fund made a permanent contribution of $ for working capital to start a municipal airport. The city used part of that money, together with the proceeds from a $ revenue bond issue, to purchase an airport from a private company. The fair values of the assets and liabilities were as follows:
Accounts receivable
Land
Buildings
$
Equipment
Accounts payable
The city purchased the airport for the fair market value of its net assets.
Airlines were billed $ for rental rights to use ticket counters and landing and maintenance space. Of this amount, $ is expected to be collectible.
Supplies totaling $ were purchased on credit.
Collections from airlines totaled $
Salaries of $ were paid to airport personnel employed by the city.
Utility bills totaling $ were paid.
A notice was received from the Last District Bankruptcy Court. Air Chance was declared bankrupt. The airport collected only $ on its bill of $
The airport obtained $ of additional permanent contributions from the General Fund to help finance improvements at the airport.
Interest of $ was paid to the bondholders.
Supplies used during the year totaled $
The General Fund made an advance to the airport of $ Airport management plans to repay the advance in full in
A contract was signed with The Construction Company for the new facilities for a total price of $
The Municipal Airport Fund invested $ in CDs
The Municipal Airport Fund received $ upon redeeming $ of the CDs mentioned in transaction
The airport purchased additional equipment for $ cash.
Interest expense of $ was accrued at the end of the year.
Other accrued expenses totaled $
Depreciation was recorded as follows:
Buildings
$
Equipment
$ of accounts payable was paid.
$ of interest revenue was received.
Excess cash of $ was invested in CDs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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