The city water utility is owned and operated by the City of Bingham. The water utility...
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The city water utility is owned and operated by the City of Bingham. The water utility was originally constructed and operated by a private corporation, but it was sold to the city 30 years before the year for which transactions are given. The post-closing trial balance of the Water Utility Fund, as of December 31, 2019, follows: City of Bingham Water Utility Fund Post-Closing Trial Balance As of December 31, 2019 Account Title Cash Customer Accounts Receivable Accumulated Provision for Uncollectible Amounts Inventory of Supplies Due from Other Funds Utility Plant in Service Accumulated Depreciation - Utility Plant Construction Work in Progress Vouchers Payable Accrued Interest Payable Revenue Bonds Payable Net Position - Net Investment in Capital Assets Net Position - Unrestricted Totals $ $ Debits 1,121,000 195,000 260,000 30,000 33,000,000 2,320,000 Credits 9,750 13,860,000 29,900 52,500 3,500,000 17,960,000 1,513,850 36,926,000 S 36,926,000 Accrued Interest Payable as of December 31, 2019 above represents six months' accrual of interest on the revenue bonds payable liability. Interest is payable semiannually on January 1 and July 1 of each year. a. Open a general journal as of December 31, 2019 for the Water Utility Fund by entering each of the accounts and amounts shown in the above post-closing trial balance. Enter 2019 from the dropdown [Year] menu. Each of the account titles will be found in the drop down [Account] menu in the [Journal] view of the program. Be sure to enter 7a 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 do not have to be 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. b. Record the following events and transactions, which occurred during the year ended December 31, 2020. Be sure that 2020 appears in the [Year] menu. 1. [Para. 7-b-1] Bond interest due on January 1, 2020 was paid to holders of the 2% revenue bonds. 2. [Para. 7-b-2] Billings to customers for water service for the year totaled $5,250,000. This amount includes $35,000 billed to the City of Bingham General Fund for water service. 3. [Para. 7-b-3] Cash collections from external customers and the city's General Fund were $5,145,000 and $30,000, respectively. (Total cash collections are $5,175,000.) 4. [Para. 7-b-4] Construction work authorized amounted to $700,000. As a part of this, a contract for $610,000 was signed with a private firm; the remainder of the work was to be done by water utility employees. 5. [Para. 7-b-5] Materials and supplies were ordered and received during the period in the amount of $447,000. The invoices agreed with the purchase orders and receiving reports and were recorded as vouchers payable. A perpetual inventory system is used for all materials and supplies. 6. [Para. 7-b-6] Payrolls were paid totaling $718,000 for operations; $193,000 for maintenance; and $215,000 for construction. NOTE: Assume NO taxes or other deductions are withheld from paychecks. Also assume there is NO employer portion of FICA tax. 7. [Para. 7-b-7] Materials and supplies issued (used) during the period amounted to $228,026 for operations; $61,294 for maintenance; and $68,281 for construction. 8. [Para. 7-b-8] Bond interest due on July 1, 2020 was paid. The city water utility is owned and operated by the City of Bingham. The water utility was originally constructed and operated by a private corporation, but it was sold to the city 30 years before the year for which transactions are given. The post-closing trial balance of the Water Utility Fund, as of December 31, 2019, follows: City of Bingham Water Utility Fund Post-Closing Trial Balance As of December 31, 2019 Account Title Cash Customer Accounts Receivable Accumulated Provision for Uncollectible Amounts Inventory of Supplies Due from Other Funds Utility Plant in Service Accumulated Depreciation - Utility Plant Construction Work in Progress Vouchers Payable Accrued Interest Payable Revenue Bonds Payable Net Position - Net Investment in Capital Assets Net Position - Unrestricted Totals $ $ Debits 1,121,000 195,000 260,000 30,000 33,000,000 2,320,000 Credits 9,750 13,860,000 29,900 52,500 3,500,000 17,960,000 1,513,850 36,926,000 S 36,926,000 Accrued Interest Payable as of December 31, 2019 above represents six months' accrual of interest on the revenue bonds payable liability. Interest is payable semiannually on January 1 and July 1 of each year. a. Open a general journal as of December 31, 2019 for the Water Utility Fund by entering each of the accounts and amounts shown in the above post-closing trial balance. Enter 2019 from the dropdown [Year] menu. Each of the account titles will be found in the drop down [Account] menu in the [Journal] view of the program. Be sure to enter 7a 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 do not have to be 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. b. Record the following events and transactions, which occurred during the year ended December 31, 2020. Be sure that 2020 appears in the [Year] menu. 1. [Para. 7-b-1] Bond interest due on January 1, 2020 was paid to holders of the 2% revenue bonds. 2. [Para. 7-b-2] Billings to customers for water service for the year totaled $5,250,000. This amount includes $35,000 billed to the City of Bingham General Fund for water service. 3. [Para. 7-b-3] Cash collections from external customers and the city's General Fund were $5,145,000 and $30,000, respectively. (Total cash collections are $5,175,000.) 4. [Para. 7-b-4] Construction work authorized amounted to $700,000. As a part of this, a contract for $610,000 was signed with a private firm; the remainder of the work was to be done by water utility employees. 5. [Para. 7-b-5] Materials and supplies were ordered and received during the period in the amount of $447,000. The invoices agreed with the purchase orders and receiving reports and were recorded as vouchers payable. A perpetual inventory system is used for all materials and supplies. 6. [Para. 7-b-6] Payrolls were paid totaling $718,000 for operations; $193,000 for maintenance; and $215,000 for construction. NOTE: Assume NO taxes or other deductions are withheld from paychecks. Also assume there is NO employer portion of FICA tax. 7. [Para. 7-b-7] Materials and supplies issued (used) during the period amounted to $228,026 for operations; $61,294 for maintenance; and $68,281 for construction. 8. [Para. 7-b-8] Bond interest due on July 1, 2020 was paid.
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Answer rating: 100% (QA)
a 7a Debits Credits Cash 1121000 Customer Accounts Receivable 195000 Accumulated Provision for Uncollectible Amounts 9750 Inventory of Supplies 260000 ... View the full answer
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