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Question 2 These transactions relate to Metro Bus, which provides transportation services to residents of Parker County, Metro Bus is accounted for as a County

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Question 2 These transactions relate to Metro Bus, which provides transportation services to residents of Parker County, Metro Bus is accounted for as a County Enterprise Fund. Make jounal entries to account for the following 2018 transactions in the Enterprise Fund 1. On April 1, 2018, Metro borrows $3,000,000 by isuing 10-year revenue bonds. Bond principal is to be paid back in 20 equal semi-annual installments, starting October 1, 2018, together with interest of 6% a year on the unpaid principal 2 On July 1, Metro pays cash for 10 buses costing $150.000 each Metro also pays cash for land costing $100,000 and a building costing $900,000 to house its repair activity. 3. On July 1, Metro invests $200,000 of unused cash in a Certificate of Deposit (CD) 4. Metro pays cash of $50,000 to acquire an inventory of repair parts. 5. Metro collects bus fares of $900,000, which it deposits in the bank 6 Metro sends an invoice for $10.000 to the County Social Services Agency for taking senior citizens on bus tours. That Agency receives appropriations from the General Fund 7. Metro pays salaries of $500,000 to its bus operators, mechanics, and administrative staff 8. The CD (transaction 3.) matures and Metro receives a check for $203,000 9. On October 1. 2018. Metro pays the first installment of principal and interest on the revenue bonds in transaction a To prepare its financial statements at December 31. 2018, Metro must make adjusting journal ntries for 10. To record six months' depreciation on the buses and building bought in transaction 2. Estimated lives are: buses 10 years; building 30 years. 11. To record consumption of repair parts, A year-end physical inventory shows repair parts on hand amounting to $8.000. (See transaction 4) 12. To accrue for unpaid salaries of $12.000 13. To accrue interest on the revenue bonds outstanding at December 31.2018. iSee transactions 1 and 9) the following items

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