1. Explain how to report the following transactions/balances in the financial statements of an Enterprise Fund. If assumptions are necessary, state them clearly.(a) $500,000 Capital grant received in cash, but not yet earned,(b) $1,200,000 capital grant earned, but not collected until 90 days after yea rend.(c) $75,000 Estimated uncollected accounts related to current year sales.(d) $3000,000 Deferred interest expense adjustment credit balance at year end . (e) $50,000 Amortization of deferred interest expense adjustment credit balance.(f)$1,000,000 cost. Re-assignment at year end of a general capital asset as an $350,000 Account depreciation Enterprise Fund capital asset. (g)$89,000 Operating grant earned and collected during the year. (h) $100,000 Accrued interest on Enterprise Fund long term bonds payable. (I) $65,000 Free services provided to General Fund departments. (j) $20,000 Charges for services provided to other enterprise funds.
2. Below is a list of transactions related to taxes for the state and county.1. The county Tax Agency Fund has been established to account for the county's duties of collecting the county and state property taxes. The levies for the the year 2015 were $600,000 for the county General Fund and $480,000 for the state. It is expected that uncollectible taxes will be $10,000 for the state and $15,000 for the county.2. Collections were $300,000 for the county and $240,000 for the state.3. The county is entitled to a fee of 1% of taxes collected for other governments. The amounts due to the state and to the County General Fund are paid except for the collection fee due to the County General Fund.4. The fee is transmitted from the Tax Agency Fund to the County General Fund.5. Uncollectible taxes in the amount of $5,000 for the state and $6,000 for the county are written off.a. Prepare the general journal entries required to record the above transacrions in the County Tax Agency Fund.b. Prepare the general journal entries required to record the above transactions in the General Fund of the state and County as applicable.c. Prepare the GAAP-based Statement of Met Position for the Tax Agency Fund. Assume that the beginning balances of taxes receivable were county, $120,000 and state $96,00