× d-Contin /Downloads/Continuous Problem City of.Monroe12th edition.pdf 6-C. Par
ID: 2565522 • Letter: #
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× d-Contin /Downloads/Continuous Problem City of.Monroe12th edition.pdf 6-C. Part 2. Enterprise Fund Transactions The City of Monroe maintains a Water and Sewer Fund to provide utility services to its citizens. As of January 1, 2015, the City of Monroe Water and Sewer Fund had the following account balances: Debits Credits $105,000 77,000 Cash Customer Accounts Receivable Estimated Uncollectible Accounts Receivable Materials and Supplies Advance to Stores and Services Fund Restricted Assets Water Treatment Plant in Service Construction Work in Progress Accumulated Depreciation - Utility Plant Accounts Payable Revenue Bonds Payable Net Assets $4,000 28,000 30,000 117,000 4,200,000 203,000 1,200,000 97,000 2,500,000 959,000 $4,760,000 $4,760,000 Totals Required a. Open a general journal for the City of Monroe Water and Sewer Utility Fund and record the following transactions. (1) During the year, sales of water to non-government customers amounted to $1,002,000 and sales of water to the General Fund amounted to $37,000. (2) Collections from non-government customers amounted to $962,000. (3) The Stores and Services Fund repaid $15,000 of the long-term advance to the (4) Materials and supplies in the amount of $257,000 were received. A liability in (5) Materials and supplies were issued and were charged to the following accounts: Water and Sewer Fund. that amount was recorded. cost of sales and services, S164,900; selling, $15,000; administration, $18,000; construction work in progress, $50,000 (6) Payroll costs for the year totaled $416,200 plus $34,200 for the employer's share of payroll taxes. Of that amount, $351,900 was paid in cash, and the remainder was withheld for taxes. The $450,400 (416,200 +34,200) was distributed as follows: cost of sales and services, $265,800; sales, $43,900; administration, $91,400, construction work in progress, $49,.300. 10 Continuous Proble...dt OLLExplanation / Answer
1)
Non-Government customers
ac
Dr.
1002000
General Fund
ac
Dr.
37000
To Sales of Water
ac
Cr.
1039000
2)
Cash
ac
Dr.
962000
To Non-Government Customers
ac
Cr.
962000
3)
Cash
ac
Dr.
15000
To Store and Service Fund
ac
Cr.
15000
4)
Material and supplies
ac
Dr.
257000
To Material and Suppliers
ac
Cr.
257000
5)
Cost of Sales and Services
ac
Dr.
164900
Selling
ac
Dr.
15000
Administration
ac
Dr.
18000
Construction work in progress
ac
Dr.
50000
To Material and Suppliers
ac
Cr.
247900
6)
Payroll cost
ac
Dr.
416200
Payroll tax
ac
Dr.
34200
To Pay roll cost and tax payable
ac
Cr.
450400
7)
Cost of Sales and Services
ac
Dr.
265800
Selling
ac
Dr.
43900
Administration
ac
Dr.
91400
Construction work in progress
ac
Dr.
49300
To Payroll Cost
ac
Cr.
416200
To Payroll tax
ac
Cr.
34200
8)
Bond Int.
ac
Dr.
162500
To Cash
ac
Cr.
162500
7)
Construction work in progress
ac
Dr.
17000
To Bond Int.
ac
Cr.
17000
9)
Water Treatment plant
ac
Dr.
203000
To Construction Work in Progress
ac
Cr.
203000
10)
Bad debts
ac
Dr.
3020
To unpaid receivables
ac
Cr.
3020
11)
Estimated Uncollectible Accounts Receivable
ac
Dr.
5500
To Customer Accounts Receivable
ac
Cr.
5500
12)
Accounts payable
ac
Dr.
297000
Payroll Tax
ac
Dr.
95200
To Cash
ac
Cr.
392200
13)
Supplies
ac
Dr.
58000
To Store and Service Fund
ac
Cr.
58000
14)
Store and Service Fund
ac
Dr.
50000
To Cash
ac
Cr.
50000
15)
Depreciation
ac
Dr.
275000
To Accumulated Depreciation - Utility Plant
ac
Cr.
275000
16)
Restricted assets.
ac
Dr.
25000
To Cash
ac
Cr.
25000
Statement of Revenue and Expenditure
Income
Expenditure
1)
Sale of Water
1039000
2)
Material and supplies
257000
3)
Payroll an tax
450400
4)
Int.
162500
5)
Bad debts
3020
6)
Supplies
58000
7)
Depreciation
275000
1039000
1205920
Fund Net Assets
opening Balance
959000
Add:
Sale of Water
1039000
Less:
Material and Supplies
257000
Payroll and tax payable
450400
1998000
707400
Cash Statement
opening Balance
105000
Add
Non-Government Customers
962000
Store and Service Fund
15000
Less:
Bond Int.
162500
Accounts payable
297000
Payroll Tax
95200
Store and Service Fund
50000
Restricted assets.
25000
977000
629700
1)
Non-Government customers
ac
Dr.
1002000
General Fund
ac
Dr.
37000
To Sales of Water
ac
Cr.
1039000
2)
Cash
ac
Dr.
962000
To Non-Government Customers
ac
Cr.
962000
3)
Cash
ac
Dr.
15000
To Store and Service Fund
ac
Cr.
15000
4)
Material and supplies
ac
Dr.
257000
To Material and Suppliers
ac
Cr.
257000
5)
Cost of Sales and Services
ac
Dr.
164900
Selling
ac
Dr.
15000
Administration
ac
Dr.
18000
Construction work in progress
ac
Dr.
50000
To Material and Suppliers
ac
Cr.
247900
6)
Payroll cost
ac
Dr.
416200
Payroll tax
ac
Dr.
34200
To Pay roll cost and tax payable
ac
Cr.
450400
7)
Cost of Sales and Services
ac
Dr.
265800
Selling
ac
Dr.
43900
Administration
ac
Dr.
91400
Construction work in progress
ac
Dr.
49300
To Payroll Cost
ac
Cr.
416200
To Payroll tax
ac
Cr.
34200
8)
Bond Int.
ac
Dr.
162500
To Cash
ac
Cr.
162500
7)
Construction work in progress
ac
Dr.
17000
To Bond Int.
ac
Cr.
17000
9)
Water Treatment plant
ac
Dr.
203000
To Construction Work in Progress
ac
Cr.
203000
10)
Bad debts
ac
Dr.
3020
To unpaid receivables
ac
Cr.
3020
11)
Estimated Uncollectible Accounts Receivable
ac
Dr.
5500
To Customer Accounts Receivable
ac
Cr.
5500
12)
Accounts payable
ac
Dr.
297000
Payroll Tax
ac
Dr.
95200
To Cash
ac
Cr.
392200
13)
Supplies
ac
Dr.
58000
To Store and Service Fund
ac
Cr.
58000
14)
Store and Service Fund
ac
Dr.
50000
To Cash
ac
Cr.
50000
15)
Depreciation
ac
Dr.
275000
To Accumulated Depreciation - Utility Plant
ac
Cr.
275000
16)
Restricted assets.
ac
Dr.
25000
To Cash
ac
Cr.
25000
Statement of Revenue and Expenditure
Income
Expenditure
1)
Sale of Water
1039000
2)
Material and supplies
257000
3)
Payroll an tax
450400
4)
Int.
162500
5)
Bad debts
3020
6)
Supplies
58000
7)
Depreciation
275000
1039000
1205920
Fund Net Assets
opening Balance
959000
Add:
Sale of Water
1039000
Less:
Material and Supplies
257000
Payroll and tax payable
450400
1998000
707400
Cash Statement
opening Balance
105000
Add
Non-Government Customers
962000
Store and Service Fund
15000
Less:
Bond Int.
162500
Accounts payable
297000
Payroll Tax
95200
Store and Service Fund
50000
Restricted assets.
25000
977000
629700
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