Problem:
The Sherill Utility District balance sheet:
Assets: General Fund
Cash $30.00
Investments: Capital Projects: $90
Debt Service Fund : $20
Total Assets: $140
Liabilities and Fund Balances:
Fund Balances: General Fund $30
Capital Projects $90
Debt Service $20
Totals :140
The general fund received all of its revenue $150 million, from taxes (all collected). It had operating expenditures, excluding transfers to other funds, of $100 million (all paid for).
The general fund transferred $20 million to the debt service fund. Of this $15 million was to repay the principal om bonds outstanding; $5 million was for interest
The district issued $130 million in bonds to finance construction of plant and equipment. Of this, is expended $40 million.
1. Prepare journal entries to summarize these activities in the appropriate funds. You need not make closing entries.
2. Comment on how the district's government-wide full accrual statement of net assets would differ from the balance sheet presented.