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Journal Entries Government and Not-for-Profit

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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.

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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.

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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 ...

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