Question 51 (12 points)

Prepare journal entries for the following related transactions in the Water Department Fund:

1. Issued $5,000,000, 4 percent bonds for $5,050,000 to finance improvements to the water plant

2. Transferred $800,000 to the general fund in lieu of property tax payments.

3. Sold used equipment for $6,000 at auction. The original cost was $70,000 and accumulated depreciation was $63,000.

4. Received a vendor invoice for $75,000 for new equipment purchased.

5. Billed water customers $420,000.

Question 51 options:

Question 52 (14 points)

During the fiscal year ended September 30, journalize the following transactions (summarized) that occurred in the Berthoud Information Technology Internal Service Fund:

1. Employees were paid $290,000 wages in cash.

2. Utility bills received from the Town of Fredericksburg's Utility Fund during the year amounted to $23,500.

3. Office expenses paid in cash during the year amounted to $10,500.

4. Service supplies purchased on account during the year totaled $157,500.

5. Parts and supplies used during the year totaled $152,300 (at cost).

6. Charges to departments during the fiscal year were as follows:

General Fund $308,700

Street Fund 279,300

7. Payments to the Utility Fund totaled $21,800.

8. Annual depreciation totaled $30,000 for machinery and equipment.

Question 52 options:

Question 53 (12 points)

Kirby County established a tax agency fund to collect property taxes for the City of Kix, the City of Denton, and Kirby County School District. Total tax levies of the three governmental units were $200,000 for the year, of which $60,000 was for the City of Kix, $40,000 for Denton, and $100,000 for the School District.

During the year the tax agency fund collected and remitted $150,000 of the $200,000 levies to the various governmental units. The remaining balance is delinquent.

For the Kirby County Tax Agency Fund prepare the journal entries to record the taxes levied, the taxes collected during the year, the remittances made to participating governments and the reclassification to delinquent taxes.

Question 53 options:

Question 54 (12 points)

The City of Bedford Falls debt service fund budgeted $150,000 (2 payments of $75,000) for interest and an annual principal payment of $500,000. Funding will be transferred from the general fund at the time payments are to be made. Interest payments will be December 15 and June 15. Principal will be paid on June 15.

1. Journalize the budget for July 1
2. Journal any necessary December 15 entry(ies)
3. What is the amount of accrued interest to be recorded in the Debt Service Fund at June 30?