Question

he Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2017, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund.

	Debits			Credits
Accounts payable				$	104,000
Accounts receivable	$	26,100
Accrued interest payable					29,200
Accumulated depreciation					47,000
Administrative and selling expenses		49,000
Allowance for uncollectible accounts					12,500
Capital assets		709,000
Cash		90,500
Charges for sales and services					555,000
Cost of sales and services		497,000
Depreciation expense		47,000
Due from General Fund		17,200
Interest expense		40,400
Interest revenue					6,000
Transfer in from General Fund					115,400
Revenue bonds payable					625,500
Supplies inventory		18,400
Totals	$	1,494,600		$	1,494,600

Exercise 6-4

Required:
a. Prepare the closing entries for December 31.
b. Prepare the Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31.
c. Prepare the Net Position section of the December 31 balance sheet. (Assume that the revenue bonds were issued to acquire capital assets and there are no restricted assets.)

Answer 1

Village of Seaside Pines Closing Enteries Debit in $ Cedit in $ Particulars Date 31.12.2017 Operating Revenues -Charges for Sales and Services a/c Dr. 555000 Transfers In a/c Dr. 115400 Non-Operating Revenues-Interest a/c Dr. 6000 To Cost of Sales and Services 497000 To Depreciation 47000 To Administrative and Selling Expenses 49000 40400 To Non-Operating Expenses -Interest Assets -Invested in Capital N 36 To Net Assets-Unrestricted 6500 Capital Assets Acquired Less: Accumulated Depreciation 709000 -47000 662000 Less: Revenue Bonds Issued -625500 Net assets: invested in capital assets, net of related debt 36500 Statement of Revenues, Expenses, and Changes in Fund Net assets For the Year ended December 31, 2017 Operating Revenues: Charges for Sales and Services 555000 Operating Expenses: Cost of Sales and Services 497000 Administrative and Selling 49000 Depreciation 47000 Total Operating Expenses 593000 Operating Income (Loss) -38000 Nonoperating Revenues (expenses) Interest Revenue 6000 -40400 Interest Expense -34400 Income Before Transfers -72400 Transfer from General Fund 115400 Increase in Net assets 43000 Net assets, January 1, 2017 0 Net assets, December 31, 2017 43000

Statement of Net Position Enterprise Fund For the Year ended December 31, 2017 Assets Current assets: Cash 90500 26100 Accounts receivable Due from general fund Materials and supplies 17200 18400 Total current assets 152200 Noncurrent assets: Capital assets 662000 Total noncurrent assets Total assets 814200 Liabilities Current liabilities: Accounts payable 104000 Accrued interest payable 29200 Total current liabilities 133200 Noncurrent liabilities: Revenue bonds payable 625500 Total noncurrent liabilities 625500 Total liabilities 758700 Net Position Net investment in capital assets 36500 Unrestricted 6500 Total net position 43000

Answer 2

All is correct imho