Required

Open a general journal as of December 31, 2019, for the Solid Waste Disposal Fund by entering each of the accounts and amounts shown in the above post-closing trial balance. Enter 2019 from the drop-down [Year] menu. Each of the account titles will be found in the drop down menu [Account] in the [Journal] view of the program. Be sure to enter 7-a as your paragraph number in the[Add description] field and enter the appropriate paragraph number for all subsequent journal entries. Verify the accuracy of your journal entry and post it to the general ledger by clicking [Post entries]. Unless your instructor specifies electronic submission, print a post-closing trial balance as of December 31, 2019, and retain it in your cumulative file until directed by your instructor to submit it.

Entries in this enterprise fund are not recorded at the government-wide level since enterprise funds and business-type activities at the government-wide level both use the same (accrual) basis of accounting and same (economic resources) measurement focus. Thus, the same information recorded in the accounts of the enterprise fund can also, with only slight modification, be reported as business-type activities at the government-wide level.

Record the following events and transactions, which occurred during the year ended December 31, 2020. Be sure that 2020 appears in the [Year] menu.

[Para. 7-b-1] Billings to customers for Charges for Services of the Solid Waste Disposal Fund totaled $2,584,662 for the year, including $18,200 billed to City of Smithville departments accounted for in the General Fund. For the amount billed to City of Smithville departments you should debit Due from Other Funds.

[Para. 7-b-2] Equipment costing $395,300 was purchased on July 1, 2020. Cash in the amount of $195,300 was paid at the time of purchase; the vendor accepted revenue anticipation notes in the amount of $200,000 to finance the remainder of the equipment. Of this amount, $100,000 of the notes will be payable on July 1, 2021; the other $100,000 will be payable on July 1, 2022. All notes bear interest at the rate of 3.5 percent per year. Record only the purchase and the related payment of cash and issuance of notes at this time; interest will be recorded in a later transaction.

[Para. 7-b-3] Vouchers for materials and supplies to be used in the operations of the fund were issued in the total amount of $896,320 (debit Inventories).

[Para. 7-b-4] Collections from customers totaled $2,551,541 during 2020. This amount included $21,800 collected from the General Fund (see 7-a balance and 7-b-1 above).

[Para. 7-b-5] Payrolls and fringe benefits paid in cash during the year totaled $1,463,379 including the amount accrued at December 31, 2019.

[Para. 7-b-6] Accrued salaries and fringe benefits at year-end amounted to $175,264. Inventories of materials and supplies used in operations during the year amounted to $875,797, at cost.

[Para. 7-b-7] Vouchers in the amount of $848,600 and the amount Due to Other Funds were paid during the year.

[Para. 7-b-8] The city uses the following annual straight-line depreciation rates: Buildings, 2.5 percent; Equipment, 10 percent (equipment purchased during the year need not be depreciated because it was not held for more than 6 months of the year). Apply these rates to the original cost of buildings and equipment as of December 31, 2019, assuming no residual or salvage value.

[Para. 7-b-9] Interest of $3,500 had accrued on the notes payable as of year-end (see transaction 7-b-2).

[Para. 7-b-10] Management decided to increase the allowance for doubtful accounts by $960 at year-end.

Chapter 7 Recording Transactions Affecting the Enterprise Fund and Business-type Activities The City of Smithville accounts for its solid waste collection and disposal activities in an enterprise fund. The balance sheet for the Solid Waste Disposal Fund as of December 31, 2019 appears below. CITY OF SMITHVILLE Solid Waste Disposal Fund Post-closing Trial Balance As of December 31, 2019 Account Title Cash Customer Accounts Receivable Allowance for Doubtful Accounts Due from Other Funds Debits $265,000 117100 Credits $6,140 6.400 54,060 600,000 1,650,000 Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation Equipment Vouchers Payable Due to Other Funds Accrued Payroll and Fringe Benefits Net Position-Net Investment in Capital Assets Net Position-Unrestricted 791,250 1,340,400 755,640 45180 12,000 66,720 2,043,510 212,520 $4.032.960 Totals $4.032.960 Chapter 7 Recording Transactions Affecting the Enterprise Fund and Business-type Activities The City of Smithville accounts for its solid waste collection and disposal activities in an enterprise fund. The balance sheet for the Solid Waste Disposal Fund as of December 31, 2019 appears below. CITY OF SMITHVILLE Solid Waste Disposal Fund Post-closing Trial Balance As of December 31, 2019 Account Title Cash Customer Accounts Receivable Allowance for Doubtful Accounts Due from Other Funds Debits $265,000 117100 Credits $6,140 6.400 54,060 600,000 1,650,000 Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation Equipment Vouchers Payable Due to Other Funds Accrued Payroll and Fringe Benefits Net Position-Net Investment in Capital Assets Net Position-Unrestricted 791,250 1,340,400 755,640 45180 12,000 66,720 2,043,510 212,520 $4.032.960 Totals $4.032.960