The Sherill Utility District was recently established. Its balance sheet, after one year, is presented below. Note the following additional information:
€¢ 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 finance 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 specific 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 district€™s government-wide (full accrual) statement of net position would differ from the balance sheetpresented.

Sherill Utility District Balance Sheel as of End of Year 1 (in millions) Capital Debt General Projects Service Fund Fund Fund Totals Assets Cash Investments Total assets $ 30 $90 S20 110 $30 Liabiities and3020 $140 fund balances00 S20 Net position