Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with this homework assignement. The county of Maxwell decides to create a sanitation department and offers its services to the public for a

Please help with this homework assignement.

The county of Maxwell decides to create a sanitation department and offers its services to the public for a fee. As a result, county officials plan to account for this activity within the enterprise funds. Make journal entries for this operation for the following 2013 transactions as well as necessary adjusting entries at the end of the year. Assume that the information is being gathered for fund financial statements. Only entries for the sanitation department are required here.

January 1-rReceived unrestricted funds of $160,000 from the General Fund as permanent financing.

February 1-Borrowed an additional $130,000 from a local bank at a 12% annual interest rate.

March 1-Ordered a truck at an expected cost of $108,000

April 1-Received the truck and made full payment. The actual cost amounted to $110,000. The truck has a 10 year life and no salvage value. Straight-line depreciation is to be used.

May 1-Received a $20,000 cash grant from the state to help sipplement the pay of the sanitation workers. The money must be used for that purpose.

June 1-Rented a garage for the truck at a cost of $1,000 per month and paid 12 months of rent in advanced.

July 1-Charged citizens $13,000 for services. Of this amount, $11,000 has been collected.

August 1-Made a $10,000 cash payment on the 12% note of February 1. This payment covers both interest and principal.

September 1-Paid salaries of $18,000 using the grant received on May 1.

October 1-Paid truck maintenance costs of $1,000

November 1-Paid additional salaries of $510,000, first using the rest of the grant money received May 1.

December 1-Sent invoices totaling $19,000 to customers for services over the past six months. Collected $3,000 cash immediately.

Make sure to have complete answers and show work if necessary.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Analytics Strategies And Methods For Detection And Prevention

Authors: Delena D. Spann

1st Edition

111823068X, 978-1118230688

More Books

Students also viewed these Accounting questions

Question

=+57-2 Discuss some common misunderstandings about introversion.

Answered: 1 week ago