some questions in smithville

1. [Para. 7-b-1] Billings to customers of the Solid Waste Disposal Fund totaled $1,890,800 for the year, including $13,700 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. 2. [Para. 7-b-2]Vouchers for materials and supplies to be used in the operations of the fund were issued in the total amount of $644,600. (Debit Inventories) 3. [Para. 7-b-3] Collections from customers totaled $1,825,800 during 2011, including $8,400 collected from the General Fund (see Transaction 7-b-1 above). 4. [Para. 7-b-4] Equipment costing $250,000 was purchased on July 1, 2011. Cash in the amount of $160,000 was paid at the time of purchase; the vendor accepted revenue anticipation notes in the amount of $90,000 to finance the remainder of the equipment. Of this amount, $45,000 of the notes will be payable on July 1, 2012; the other $45,000 will be payable on July 1, 2013. All notes bear interest at the rate of 4.2 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.) 5. [Para. 7-b-5] Payrolls and fringe benefits paid in cash during the year totaled $985,700, including the amount accrued at December 31, 2010. 6. [Para. 7-b-6] Accrued salaries and fringe benefits at year-end amounted to $55,600. Materials and supplies used in operations during the year amounted to $645,400, at cost. 7. [Para. 7-b-7] Vouchers in the amount of $648,800 were paid during the year. 8. [Para. 7-b-8] Interest accrued on revenue anticipation notes as of year-end (see transaction 7-b-4) was recorded. 9. [Para. 7-b-9] Provision for doubtful accounts was recorded in the amount of $2,550. 10. [Para. 7-b-10] The city uses the following annual straight-line depreciation rates: Buildings, 2.5 percent; Equipment, 10 percent (equipment purchased during the year is not depreciated unless held for more than 6 months of the year). Apply these rates to the original cost of buildings and equipment as of December 31, 2010, assuming no residual or salvage value. 11. [Para. 7-b-11] The City of Smithville estimates that for the city's landfill the total current cost for closure and postclosure compliance with the Environmental Protection Agency rules discussed in Chapter 7 will be $1,200,000. Based on the percentage of estimated capacity of the landfill used in the current period, the current period expense and related liability for future closure and post closure costs is $100,000. 12. [Para. 7-b-12] On December 31, 2011, prior to preparing closing entries, the Solid Waste Disposal Fund was charged for materials and supplies expense in the amount of $10,000 that had erroneously been charged to the General Fund (see transaction 14 of the General Fund in Chapter 4 of this cumulative problem). You should credit Due to Other Funds. 13. a. After verifying the accuracy of all entries for the preceding transactions, post amounts to the general ledger accounts by clicking [Post Entries]. Prepare entries to close all operating statement accounts at the end of 2011 and to reclassify the two net asset accounts, as appropriate. Be sure that the check mark for [Closing Entry] is on for each account being closed and that \"Closing Entries\" appears in the [Transaction Description] box. Post the closing entries to the general ledger by clicking [Post Entries]