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Application—Week 5
Part 2: Conversion of Enterprise Fund to Business-Type Activities
Town of Blue uses a fiscal year ended December 31. Following is the trial balance for Town of Blue Enterprise Funds for 2010
Debits ($) | Credits ($) | ||
Cash | 550,000 | ||
Accounts Receivable | 800,000 | ||
Allowance for uncollectible accounts | 12,500 | ||
Due from Other Enterprise Funds | 125,000 | ||
Inventory | 101,000 | ||
Land | 880,000 | ||
Buildings | 1,290,000 | ||
Accumulated Depreciation – Buildings | 129,125 | ||
Equipment | 606,000 | ||
Accumulated Depreciation – Equipment | 1,200 | ||
Vouchers Payable | 652,125 | ||
Due to Other Enterprise Funds | 125,000 | ||
Deferred Grant Revenues | 176,825 | ||
Bonds Payable | 1,500,000 | ||
Unamortized discount on bonds | 125,000 | ||
Net Assets | 1,696,025 | ||
Charges for Services | |||
Water and Sewer | 425,000 | ||
Transit Authority | 125,000 | ||
Parks and Recreation | 55,000 | ||
Transfers from General Fund | 99,000 | ||
Investment Income | 10,100 | ||
Gain on the sale of equipment | 1,200 | ||
Water and Sewer Expenses | 325,000 | ||
Transit Authority Expenses | 131,000 | ||
Parks and Recreation Expenses | 75,100 | ||
$ 5,008,100 | $ 5,008,100 |
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Application—Week 5
Part 1: Preparation of Statement of Activities for a Township
Cala Township uses a fiscal year ending on April 30. The following information is available for preparation of the statement of activities for Cala Township for 2010
Dollars ($) | ||
General property tax revenues | 3,000,000 | |
Unrestricted grant revenues | 1,500,000 | |
Grants restricted to education | 750,000 | |
Capital grants restricted for transportation | 900,000 | |
Expenses: | ||
General government | 350,000 | |
Public safety | 150,000 | |
Education | 450,000 | |
Transportation | 679,000 | |
Interest on loan for governmental activities | 35,000 | |
Transfers to Enterprise Funds | 880,000 | |
Water Enterprise Fund | ||
Charges for services | 550,000 | |
Expenses | 335,000 | |
Tornado loss on general government building that was destroyed | 150,000 | |
Net Assets, governmental activities, beginning balance | 1,250,000 | |
Net Assets, business type activities, beginning balance | 786,000 |
product code: Accounts-AW433
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