Part 1: Need help with section a, [Para 7b-1], [Para 7b-2], and [Para 7b-3] (The first four problems. Feel free to do as much as you would like though.)
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, 2019, follows: CITY OF BINGHAM Water Utility Fund Trial Balance As of December 31, 2019 Debits Credits Cash $ 526,692 Restricted Cash-Customer Deposits 67,840 Customer Accounts Receivable 181,524 Accumulated Provision for Uncollectible Accounts $ 5,266 Inventory of Supplies 101,799 Due from Other Funds 22,400 Utility Plant in Service 21,042,463 Accumulated Depreciation- Utility Plant 4,765,842 Construction Work in Progress 1,402,777 Vouchers Payable 83,541 Customer Deposits 67,840 Accrued Interest Payable 477,510 Revenue Bonds Payable 15,917,000 Bond Discount on Revenue Bonds Payable 71,720 Net Position-Net Investment in Capital Assets 1,834,118 Net Position-Unrestricted 266,098 Totals $23,417,215 $23.417.215 Additional information: The following information is provided about accounts shown on the December 31, 2019, 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. The 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 a. Open a general journal as of December 31, 2019 for the Water Utility Fund by entering each of the accounts and amounts shown in the above post-closing trial balance. Enter 2019 from the dropdown [Year] menu. Each of the account titles will be found in the drop down [Account] menu in the [Journal] view of the program. Be sure to enter 7a as your paragraph number in the [Add description] field 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, 2019, 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. b. Record the following events and transactions, which occurred during the year ended December 31, 2020. Be sure that 2020 appears in the [Year] menu. 1. [Para. 7b-1] Bond interest accrued and due on January 1, 2020 was paid to holders of the revenue bonds. 2. [Para. 7b-2] Billings to external customers for water service for the year totaled $3,124,500. Billings to the City of Bingham General Fund for water service totaled $50,000 3. [Para. 7b-3] Collections from customers totaled $3,044,100; $22,400 was also received from the city's General Fund. 4. (Para. 7b-40 A $650,000 contract was signed for a construction project expected to cost $995,000. Water utility employees will complete $360,000 of the project. 5. [Para. 76-5] 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. 6. [Para. 7b-6] Payrolls were paid totaling $645,750 for operations: $169,400 for maintenance; and $170,500 for construction. 7. [Para. 7b-7] Materials and supplies issued during the period amounted to $275,000 for operations; $130,000 for maintenance; and $166,000 for construction. 8. [Para. 76-8] Bond interest due on July 1, 2020 was paid. As part of the journal entry, 1/40 th of the Unamortized Bond Discount on Revenue Bonds Payable should be amortized. 9. [Para. 7b-9] Interest of $35,000 that was recorded as an expense in 7b-8 was determined to have been incurred during construction and should be charged to Construction Work in Progress
