Question

The village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2020. 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 $ 103,000

Accounts receivable $ 25,800

Accrued interest payable 28,900

Accumulated depreciation 46,500

Administrative and selling expenses 48,500

Allowance for uncollectible accounts 12400

Capital assets 707,000

Cash 90,200

charges for sales and services 553,000

Cost of sales and services 495,000

Depreciation expense 46,500

Due from General Fund 17,100

Interest expense 4,300

Transfer in from general fund 115,200

Banknote payable 625,300

Supplies inventory 18,300

Totals $1,488,600 $1,488,600

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

Answer 1

a)
Date	Particulars	Debit ($)	Credit ($)
	Charge for sales and services	553000
	Transfer in from general fund	115200
	Adminstrative and selling expenses		48500
	Cost of sales and service		495000
	Depreciation expense		46500
	Interest expense		4300
	Net assets		73900
	(To record the closing entry on Dec 31.)
b)
	Particulars	Amount ($)	Amount ($)
	Operating revenue:
	charges for sales and services		553000
	Operating expenditures:
	Cost of sales and services	495000
	Administrative and selling expenses	48500
	Depreciation	46500
	Interest	4300
	Total operating expenditures		594300
	Income before contributions and transfers		-41300
	Contributions of capital		0
	Transfer In		115200
	Transfer Out		0
	Change in Net position		73900
	Beginning Net position		0
	Ending year net position		73900
c)	Balance sheet
	Assets:	Amount ($)	Amount ($)
	Cash	90200
	Accounts receivable	25800
	Due from general fund	17100
	Suplies	18300
	Total current assets		151400
	Non-current assets
	Capital assets, Net of depreciation		660500
	Total assets		811900
	Liabilities and fund equity:
	Current liabilities:
	Accounts payable	103000
	Accrued interest payable	28900
	Allowance for uncollectible accounts	12400
	Total current liabilities		144300
	Non-Current liabilities
	Revenue bonds payable		625300
	Total liabilities		769600
	Net position
	Ending net position		42300
	Eotal liabilities and net position		811900