The Sherill Utility District was recently established. Its balance sheet, after one year, is presented below. Note
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¢ The general fund received all of its revenue, $150 million, from taxes. It had operating expenditures, excluding transfers to other funds, of $100 million.
¢ The general fund transferred $20 million to the debt service fund. Of this, $15 million was to repay the principal on bonds outstanding; $5 million was for interest.
¢ The district issued $130 million in bonds to ï¬nance construction of a plant and equipment. Of this, it expended $40 million.
1. Prepare journal entries to summarize all transactions in which the district engaged. You need not make closing entries. Do not be concerned as to the speciï¬c titles of accounts to be debited or credited (e.g., whether a transfer from one fund to another should be called a transfer, an expense, or an expenditure, or whether proceeds from bonds should be called bond proceeds or revenues).
2. Comment on how the districts government-wide (full accrual) statement of net position would differ from the balance sheetpresented.
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Related Book For
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala
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