The Metro Central Railroad is a commuter railroad that stops at the Village of Kelly. Kelly,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Metro Central Railroad is a commuter railroad that stops at the Village of Kelly. Kelly, a growing community, decides to construct and operate a parking lot near the railroad station to accommodate the needs of its citizens. The activities of the parking lot will be accounted for in an Enterprise Fund, a. Prepare journal entries for the following Kelly Metro Parking Fund transactiors and events during 2017: 1. Receives $5,000,000 from the sale of revenue bonds at par. The revenue bonds were sold on July 1, 2017. They mature at the rate of 5250,000 a year over a period of 20 years, starting July 1, 2018, Interest on the bonds is payable annually, also starting July 1, 2018, at 4 percent per annum on the outstanding debt 2. Pays $1.000,000 to acquire a vacant lot near the rairoad station. 3. Pays $4,000,000 to construct the parking lot. The lot is compieted and ready for opening as of December 31, 2017 4. Accrues interest for 6 months on the serial bonds. [interest expense is not capitalzed. 5. Recelves an invoke for s80.000 from the Village of Kelly General Fund for all expenses incurred in financing and planning for constructing the parking fot Based on the foregoine transactions and events, the Kelly Metro Parking Fund starts calendar year 2018 with the folowing trial bolance Based on the foregoing transactions and events, the Kelly Metro Parking Fund starts calendar year 2018 with the following trial balance: Debits Credits Land $1.000,000 Parkang lot 4.000.000 Accrued interest payable $ 100.000 Due to General Fund B0.000 Revenue bonds payable. 5.000,000 Net 180.000 $5.180,000 $5180,000 position Totals Ref. Description Debit Credit 1 3. 4 2. 5. b. Prepare journal entries to record the following transactions and events of the Kelly Metro Parking Fund for calendar year 2018. Then prepare a statement of revenues, expenses, and changes in net position for the year and a statement of net position as of December 31, 2018. 1. Receives cash from parking fees in the amount of $800,000. 2. Receives cash of s60,000 in December 2018 from parking lot customers who rent space for the month of January 2019. 3. Pays the amount due at the start of the year to the General Fund. 4. Pays the following expenses: salaries-$125,000; insurance-$20,000; utilities-$35,000. S. Pays the first installment of principal and interest on the revenue bonds, due July 1, 2018. 6. Accrues interest on the revenue bonds as of December 31, 2018. 7. Records one year's depreciation on the parking lot. The parking lot has been estimated to have a useful life of 20 years. Ref. Description Debit Credit 1 3. 4 Salaries expense Insurance expense Revenue bonds payable Interest expense 7. 2. Use a negative sign with your answer to indicate a negative net position. Otherwise do not use a negative sign with your answers. Village of Kelly Kelly Metro Parking Enterprise Fund Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended December 31, 2018 Operating revenues-parking fees Operating expenses: Salaries expense Insurance expense Utilities expense Depreciation expense Total operating expenses Operating income Nonoperating expenses: Interest expense Change in net position Net position: Beginning of year End of year Use a negative sign with your answer to indicate a negative net position. Otherwise do not use a negative sign with your answers. Village of Kelly Kelly Metro Parking Enterprise Fund Statement of Net Position December 31, 2018 Assets Current assets- cash Noncurrent assets Land Parking lot, net of accumulated depreciation Total assets Liabilities Current liabilities: Deferred rental income Accrued interest payable Current portion of revenue bonds payable Total cutrent liabilities Noncurrent liabilities: Long-term portion of revenue bonds payable Total labilities Net Position Netinvestment.io.caoitalaconts December 31, 2018 Assets Current assets - cash $4 Noncurrent assets: Land Parking lot, net of accumulated depreciation Total assets $4 Liabilities Current liabilities: Deferred rental income %$4 Accrued interest payable Current portion of revenue bonds payable Total current liabilities Noncurrent liabilities: Long-term portion of revenue bonds payable Total liabilities Net Position Net investment in capital assets Unrestricted net position Total net position %24 %24 %24 The Metro Central Railroad is a commuter railroad that stops at the Village of Kelly. Kelly, a growing community, decides to construct and operate a parking lot near the railroad station to accommodate the needs of its citizens. The activities of the parking lot will be accounted for in an Enterprise Fund, a. Prepare journal entries for the following Kelly Metro Parking Fund transactiors and events during 2017: 1. Receives $5,000,000 from the sale of revenue bonds at par. The revenue bonds were sold on July 1, 2017. They mature at the rate of 5250,000 a year over a period of 20 years, starting July 1, 2018, Interest on the bonds is payable annually, also starting July 1, 2018, at 4 percent per annum on the outstanding debt 2. Pays $1.000,000 to acquire a vacant lot near the rairoad station. 3. Pays $4,000,000 to construct the parking lot. The lot is compieted and ready for opening as of December 31, 2017 4. Accrues interest for 6 months on the serial bonds. [interest expense is not capitalzed. 5. Recelves an invoke for s80.000 from the Village of Kelly General Fund for all expenses incurred in financing and planning for constructing the parking fot Based on the foregoine transactions and events, the Kelly Metro Parking Fund starts calendar year 2018 with the folowing trial bolance Based on the foregoing transactions and events, the Kelly Metro Parking Fund starts calendar year 2018 with the following trial balance: Debits Credits Land $1.000,000 Parkang lot 4.000.000 Accrued interest payable $ 100.000 Due to General Fund B0.000 Revenue bonds payable. 5.000,000 Net 180.000 $5.180,000 $5180,000 position Totals Ref. Description Debit Credit 1 3. 4 2. 5. b. Prepare journal entries to record the following transactions and events of the Kelly Metro Parking Fund for calendar year 2018. Then prepare a statement of revenues, expenses, and changes in net position for the year and a statement of net position as of December 31, 2018. 1. Receives cash from parking fees in the amount of $800,000. 2. Receives cash of s60,000 in December 2018 from parking lot customers who rent space for the month of January 2019. 3. Pays the amount due at the start of the year to the General Fund. 4. Pays the following expenses: salaries-$125,000; insurance-$20,000; utilities-$35,000. S. Pays the first installment of principal and interest on the revenue bonds, due July 1, 2018. 6. Accrues interest on the revenue bonds as of December 31, 2018. 7. Records one year's depreciation on the parking lot. The parking lot has been estimated to have a useful life of 20 years. Ref. Description Debit Credit 1 3. 4 Salaries expense Insurance expense Revenue bonds payable Interest expense 7. 2. Use a negative sign with your answer to indicate a negative net position. Otherwise do not use a negative sign with your answers. Village of Kelly Kelly Metro Parking Enterprise Fund Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended December 31, 2018 Operating revenues-parking fees Operating expenses: Salaries expense Insurance expense Utilities expense Depreciation expense Total operating expenses Operating income Nonoperating expenses: Interest expense Change in net position Net position: Beginning of year End of year Use a negative sign with your answer to indicate a negative net position. Otherwise do not use a negative sign with your answers. Village of Kelly Kelly Metro Parking Enterprise Fund Statement of Net Position December 31, 2018 Assets Current assets- cash Noncurrent assets Land Parking lot, net of accumulated depreciation Total assets Liabilities Current liabilities: Deferred rental income Accrued interest payable Current portion of revenue bonds payable Total cutrent liabilities Noncurrent liabilities: Long-term portion of revenue bonds payable Total labilities Net Position Netinvestment.io.caoitalaconts December 31, 2018 Assets Current assets - cash $4 Noncurrent assets: Land Parking lot, net of accumulated depreciation Total assets $4 Liabilities Current liabilities: Deferred rental income %$4 Accrued interest payable Current portion of revenue bonds payable Total current liabilities Noncurrent liabilities: Long-term portion of revenue bonds payable Total liabilities Net Position Net investment in capital assets Unrestricted net position Total net position %24 %24 %24
Expert Answer:
Related Book For
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
Posted Date:
Students also viewed these accounting questions
-
Journal entries and financial statements for an Internal Service Fund Lilly County, faced with the prospect of declining revenues, decides it can save money by doing all printing in-house. The county...
-
The Metro Central Railroad is a commuter railroad that stops at the Village of Katonah. Katonah, a growing community, decides to construct and operate a parking lot near the railroad station to...
-
Journal entries and financial statement presentation of short-term securities available for sale. The following information summarizes data about Dostal Corporation's marketable securities held as...
-
Explain the investigation process As an HR manager, identify the first three steps you recommend the HR team take to begin to investigate this scenario. Explain how the steps you are recommending are...
-
The three cups are rolled on a level surface. Rank the cups by the amount they depart from a straight-line path (most curved to least curved). B B.
-
The dc base voltages in Figure 1837 are zero. Using your knowledge of transistor analysis, determine the dc differential output voltage. Assume that Q 1 has an = 0.98 and Q 2 has an = 0.975. FIGURE...
-
The Wide World of Fluids article titled "Done without GPS or Lasers,". Determine the number of gallons of water delivered per day by a rubble masonry, \(1.2-\mathrm{m}\)-wide aqueduct laid on an...
-
Here is information related to Shashko Company for 2012. Total credit sales ............ $1,500,000 Accounts receivable at December 31 .... 840,000 Bad debts written off ........... 37,000...
-
What are the thermodynamic and kinetic considerations in ultrasonic-assisted extraction, and how does this method enhance the efficiency and speed of extraction compared to conventional techniques ?
-
Oil (sp. gr. = 0.8) flows smoothly through the circular reducing section shown at 3 ft 3 /s. If the entering and leaving velocity profiles are uniform, estimate the force that must be applied to the...
-
Canadian Motorcycles Ltd. (CML) manufactures and sells two types of motorcycles: Sport and Hog. Budgeted sales for 2022 are as follows: #motorbikes sold Selling price/cycle Variable expenses/cycle...
-
This presentation should simulate an actual presentation that will be delivered to the managers. You must utilize the slide notes function in PowerPoint to add speaker notes to each slide; these...
-
How to response this message," The minimum education requirement to become a training and development manager is a bachelor's degree although a master's can be preferred for many positions (BLS.) The...
-
Temple City California Comprehensive Pan How does it Work? What purpose does it serve? What are the effects and second-order consequences? Describe the necessary primary stakeholders to have a...
-
How is a recovery recorded in the financial statements? 8. What are the potential tax implications of a recovery? . How does a recovery affect the net income and profitability of a business?
-
What accounting software and tools do accountants commonly use to perform their duties? How does an accountant assist in tax planning and ensuring compliance with tax laws?
-
Compare and contrast how IBM and Papa John's Pizza must market their products given that one is b2b and one is b2c.
-
Pappa's Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 are...
-
Croton Hospital was a not- for- profit entity. Because it experienced financial difficulties, the county in which the hospital was located assumed control of Crotons assets and liabilities. The...
-
You recently agreed to make a presentation to an accounting class at your alma mater. Your topic will be governmental financial reporting. Review the financial statements for the Internal Service...
-
The City of Oscar uses an Internal Service Fund to provide printing services to its various departments. It bills departments on the basis of an estimated rate per page of printed material, computed...
-
The period of free vibration of a linear system is independent of initial conditions. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite the statement to...
-
A system with a natural frequency of \(10 \mathrm{rad} / \mathrm{s}\) has a shorter period than a system of natural frequency \(100 \mathrm{rad} / \mathrm{s}\). Indicate whether the statement...
-
The natural frequency determined directly from the differential equation of motion has units of Hertz. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite...
Study smarter with the SolutionInn App