Question

Problem 17-34 (LO 17-4) The County of Maxnell decides to create a sanitation department and offer its services to the public for a fee. As a result, county officials plan to account for this activity within the enterprise funds. Prepare journal entries for this operation for the following 2017 transactions as well as necessary adjusting entries at the end of the year. Assume the information is being gathered to prepare fund financial statements. Only entries for the sanitation department are required here: January 1 Received unrestricted funds of $225.000 from the general fund as permanent financing February 1 Borrowed an additional $144,000 from a local bank at a 12 percent annual interest rate. March 1 Ordered a truck at an expected cost of $155,000. April 1 Received the truck and made full payment. The actual cost mounted to $159.500. The truck has a 10-year life and no salvage value. Straight line depreciation is to be used. May 1 Received 524,100 cash grant from the state to help supplement the pay of the sanitation workers. The money must be used for that purpose. June 1 Rented garage for the truck at a cost of $1,250 per month and paid 12 months of rent in advance. July 1 Charged citizens $13,500 for services of this amount, $11,500 has been collected August 1 Made a $13,500 cash payment on the 12 percent note of February 1. This payment covers both interest and principal Septeber 1 Pald salaries of $20,600 using the grant received on May 1. October 1 Pald truck saintenance costs of $3.350. November 1 Pald additional salaries of $14,200. First using the rest of the grant received May 1. December 31 Sent invoices totaling $24.90 to customers for services over the past six onths Collected $3,00 cash mediately. December 31 A new landfill was opened this year. It is 12 percent filled as of the end of the year. The estimated current cost for the eventual closure of this facility is $. illion although no payments will be made for approximately years Make journal entries for this operation for the above 2017 transactions as well as necessary adjusting entries at the end of the year (if no entry is required for a transaction/event, select "No journal entry required in the first account feld, Enter your answers in whole dollars and not in millions.) View transaction list Journal entry worksheet 1 2 3 4 6 7 8 ... 20 Record receipt of unrestricted funds from the general funds - Enterprise fund. Note: Enter debits before credits General Journal Debat

Answer 1

Answer- Journal Entries

Date	Account Title and Explanation	Debit	Credit
1/1/17	Cash	225,000
	Capital Contributions		225,000
2/2/17	Cash	144,000
	Notes Payable		144,000
3/1/17	No Journal Entry Required-Only a Commitment
	No Journal Entry Required-Only a Commitment
4/1/17	Truck	159,800
	Cash		159,800
5/1/17	Cash	24,100
	Deferred Revenue		24,100
6/1/17	Prepaid Rent (1,250*12)	15,000
	Cash		15,000
7/1/17	Accounts Receivable	13,500
	Revenue-Services		13,500
7/1/17	Cash	11,500
	Accounts Receivable		11,500
8/1/17	Interest Expenses	8,640
	Notes Payable	4,860
	Cash		13,500
	Interest Expenses= $144,000*12%*6/12=$8,640
	Notes Payable= $13,500-$8,640= $4,860
9/1/17	Salaries expenses	20,600
	Cash		20,600
	Deferred Revenue	20,600
	Revenue-Grant		20,600
10/1/17	Maintenance Expense	3,350
	Cash		3,350
11/1/17	Salaries Expenses	14,200
	Cash		14,200
	Deferred Revenue	2,840
	Revenue-Grant		2,840
12/31/17	Accounts Receivable	24,900
	Revenues-Services		24,900
	Cash	3,800
	Accounts Receivable		3,800
12/31/17	Interest Expenses ($144,000-$4,860= $139,140) ($139,140*12%*5/12)	6,957
	Interest Payable		6,957
12/31/17	Depreciation Expense ($159,800*1/10*9/12)	11,985
	Accumulated Depreciation		11,985
12/31/17	Rent Expenses ($1,250*7)	8,750
	Prepaid Rent		8,750