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Question 15 The County of Maxnell decides to create a waste management department and offer its services to the public for a fee. As
Question 15 The County of Maxnell decides to create a waste management department and offer its services to the public for a fee. As a result, county officials plan to account for this activity as an enterprise fund. Assume the information is gathered so that the county can prepare fund financial statements. Only entries for the waste management department are required here: January 1 Febrauary 1 www March 1 April 1 May 1 June 1 July 1 August 1 September 1 October 1 November 1 December 31 Receive unrestricted funds of $160,000 from the general fund as permanent financing. Borrow an additional $130,000 from a local bank at a 12 percent annual interest rate. Order a truck at an expected cost of $108,000. Receive the truck and make full payment. The actual cost including transportation was $110,000. The truck has a 10-year life and no residual value. The county uses straight-line depreciation. Receive a $20,000 cash grant from the state to help supplement the pay of the department workers. According to the grant, the money must be used for that purpose. Rent a garage for the truck at a cost of $1,000 per month. The county pays 12 months of rent in advance. The contract has no provisions for extensions or purchases. Charge citizens $13,000 for services. Of this amount, $11,000 is collected. Make a $10,000 cash payment on the 12 percent note of February 1. This payment covers both interest and principal. Pay salaries of $18,000 using the grant money received on May 1. Pay truck maintenance costs of $1,000. Pay additional salaries of $10,000, first using the rest of the grant money received May 1. Send invoices totaling $19,000 to customers for services during the past six months. Collect $3,000 of the cash immediately. A new government landfill opened this year. At the end of the year, it is 12 percent filled. The December 31 estimated current cost for the eventual closure of this facility is $4 million, although no payments will be made for approximately nine years. Required: Prepare journal entries for this operation for the following 2024 transactions. Also prepare any necessary adjusting entries at the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. 1. Record receipt of unrestricted funds from the general fund as permanent financing. 2. Record amount borrowed from a local bank at a 12 percent annual interest rate. 3. Record entry for the truck ordered. 4. Record receipt of the truck and its full payment. 5. Record cash grant received to help supplement payment to department workers. 6. Record garage rented for truck and payment of 12 months rent in advance. 7. Record the income for services to citizens. 8. Record receipt for services rendered. 9. Record payment of interest and principal on the note. 10. Record payment of salaries. 11. Record the entry to recognize the grant revenue. 12. Record truck maintenance cost paid. 13. Record additional salaries paid, first using the rest of the grant money received. 14. Record the entry to recognize the grant revenue. 15. Record invoices sent to customers for services. 16. Record the amount received from customers for services. 17. Record the accrual of interest expense. 18. Record depreciation expense for the truck. 19. Record rent expense. 20. Record entry to recognize portion of total costs for eventual closure of landfill.
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