Record the following transactions in the Enterprise Fund of the country: (1*5: 5Marks)

1. Services of $5,000,000 were provided and billed to outside customers.

2. Services of $750,000 were provided and billed to other funds.

3. $750,000 was collected from other funds, and $4,000,000 was collected on account.

4. $20,000 of accounts receivable were written off as uncollectible.

5. Estimated bad debts for the year were $100,000.

B. Compute the amount of sales revenues that should be reported for the Enterprise Fund.

(1 mark)

C. Prepare entries to record the following selected transactions. If a transaction affects more than one fund, prepare entries for all affected funds: (1*4: 4 marks)

1) The city's utility fund sends an invoice for $10,000 to the General Fund for electricity provided to the city's agencies, and the General Fund receives the invoice.

2) The General Fund sends its annual $150,000 cash subsidy to the water enterprise fund.

3) To undertake a major capital project, the city issues $950,000 of 10-year serial bonds. The bonds are sold at a discount, so the city realizes bond proceeds of $935,000.

4) A wealthy citizen donates $500,000 to the city. In a formal trust agreement, the citizen requires that the funds be held intact in perpetuity, but that any income from the funds must be used to buy books for the city library. The fund earns revenue of $23,000 from investing the donation and sends the cash to the Library Special Revenue Fund.