Explore BrainMass
Share

Explore BrainMass

    Journal Entries Government and Not-for-Profit

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The Sherill Utility District balance sheet:
    Assets: General Fund
    Cash $30.00
    Investments: Capital Projects: $90
    Debt Service Fund : $20
    Total Assets: $140

    Liabilities and Fund Balances:
    Fund Balances: General Fund $30
    Capital Projects $90
    Debt Service $20

    Totals :140

    The general fund received all of its revenue $150 million, from taxes (all collected). It had operating expenditures, excluding transfers to other funds, of $100 million (all paid for).

    The general fund transferred $20 million to the debt service fund. Of this $15 million was to repay the principal om bonds outstanding; $5 million was for interest

    The district issued $130 million in bonds to finance construction of plant and equipment. Of this, is expended $40 million.

    1. Prepare journal entries to summarize these activities in the appropriate funds. You need not make closing entries.
    2. Comment on how the district's government-wide full accrual statement of net assets would differ from the balance sheet presented.

    © BrainMass Inc. brainmass.com October 9, 2019, 7:21 pm ad1c9bdddf
    https://brainmass.com/business/the-role-of-government-and-regulation/journal-entries-government-and-not-for-profit-115374

    Solution Preview

    The Sherill Utility District balance sheet:
    Assets: General Fund
    Cash $30.00
    Investments: Captial Projects: $90
    Debt Service Fund : $20
    Total Assets: $140

    Liabilities and Fund Balances:
    Fund Balances: General Fund $30
    Capital Projects $90
    Debt Service $20

    Totals :140

    The general fund received all of its revenue $150 million, from taxes (all collected). It had operating expenditures, excluding transfers to other funds, of $100 million (all paid for).

    The general fund transferred $20 ...

    Solution Summary

    The solution prepares a journal entry to summarize activities in the appropriate funds.Comments are also made on how the district's government-wide full accrual statement of net assets would differ from the balance sheet presented.

    $2.19