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Category > Accounting Posted 24 Aug 2017 My Price 7.00

Water Commission enterprise

Exercise 8 (LO 2) Enterprise fund. Prepare journal entries to record the following events in the city of Rosewood’s Water Commission enterprise fund:

a.     From its general fund revenues, the city transferred $300,000, which is restricted for the drilling of additional wells.

b.    Billings for water consumption for the month totaled $287,000, including $67,000 billed to other funds within the city.

c.     The Water Commission collected $42,000 from other funds and $190,000 from other users on billings in item (b).

d.    To raise additional funds, the utility issued $700,000 of 5%, 10-year revenue bonds at face value. Proceeds are restricted to the development of wells.

e.     The contract with the well driller showed an estimated cost of $930,000.

f.     The well driller bills $360,000 at year-end.

g.    The utility pays a $300,000 bill from the well driller.

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Maurice Tutor
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Status NEW Posted 24 Aug 2017 12:08 AM My Price 7.00

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