Required: You have been asked to provide financial statements for the upcoming County Board meeting for the Television Reception Improvement Fund. Part 1: Assume the County chooses to report the Television Reception Improvement Fund as a special revenue fund following modified accrual basis statements. Using the Excel template provided, a. Prepare journal entries recording the events above for the year ending December 31, 2017. b. Post the journal entries to T-accounts. c. Prepare closing entries. d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance. e. Prepare a Balance Sheet, assuming there are no restricted or commit- ted fund net resources.
Required: You have been asked to provide financial statements for the upcoming County Board meeting for the Television Reception Improvement Fund. Part 1: Assume the County chooses to report the Television Reception Improvement Fund as a special revenue fund following modified accrual basis statements. Using the Excel template provided, a. Prepare journal entries recording the events above for the year ending December 31, 2017. b. Post the journal entries to T-accounts. c. Prepare closing entries. d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance. e. Prepare a Balance Sheet, assuming there are no restricted or commit- ted fund net resources.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![-14. Rural County is an agricultural community located hundreds of miles from
any metropolitan center. The County established a Television Reception
Improvement Fund to serve the public interest by constructing and operat-
ing television translator stations. TV translator stations serve communities
that cannot receive the signals of free over-the-air TV stations because
they are too far away from a broadcasting TV station. Because of the large
distances between customers, commercial cable TV providers are also
not inclined to serve rural communities. The fund charges TV owners a
monthly fee of $15. The fund was established on December 20, 2016, with
a transfer of cash from the General Fund of $125,000. On December 31,
2016, the fund acquired land for its translator stations in the amount of
$40,000. The remaining cash and the land are the only resources held by
the fund at the beginning of 2017.
1. Other than beginning account balances, no entries have been made in
the general ledger.
2. The county prepared a budget for 2017 with estimated customer fees
of $32,000, operating costs of $28,000, capital costs of $66,000, and
estimated loan proceeds of $55,000.
3. The following information was taken from the checkbook for the year
ended December 31, 2017.
Cash Receipts:
Fees from customers
Borrowing from bank
Total deposits
Cash Disbursements:
Supplies
Labor
Utilities
Equipment
Interest on bank note
Total checks
Beginning Cash Balance
Ending Cash Balance
Cash Basis
12 months
$33,250
52,000
85,250
7,300
9,900
7,500
64,000
2,080
90,780
85,000
$79,470](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb21ba033-5d68-4abc-9629-d398ef7e99b8%2Fa590bec9-82de-4222-9002-b8e876d702d5%2F3q9rzej_processed.jpeg&w=3840&q=75)
Transcribed Image Text:-14. Rural County is an agricultural community located hundreds of miles from
any metropolitan center. The County established a Television Reception
Improvement Fund to serve the public interest by constructing and operat-
ing television translator stations. TV translator stations serve communities
that cannot receive the signals of free over-the-air TV stations because
they are too far away from a broadcasting TV station. Because of the large
distances between customers, commercial cable TV providers are also
not inclined to serve rural communities. The fund charges TV owners a
monthly fee of $15. The fund was established on December 20, 2016, with
a transfer of cash from the General Fund of $125,000. On December 31,
2016, the fund acquired land for its translator stations in the amount of
$40,000. The remaining cash and the land are the only resources held by
the fund at the beginning of 2017.
1. Other than beginning account balances, no entries have been made in
the general ledger.
2. The county prepared a budget for 2017 with estimated customer fees
of $32,000, operating costs of $28,000, capital costs of $66,000, and
estimated loan proceeds of $55,000.
3. The following information was taken from the checkbook for the year
ended December 31, 2017.
Cash Receipts:
Fees from customers
Borrowing from bank
Total deposits
Cash Disbursements:
Supplies
Labor
Utilities
Equipment
Interest on bank note
Total checks
Beginning Cash Balance
Ending Cash Balance
Cash Basis
12 months
$33,250
52,000
85,250
7,300
9,900
7,500
64,000
2,080
90,780
85,000
$79,470
![180 Chapter 6
4. The loan from the bank is dated April 1 and is for a five-year period.
Interest (8 percent annual rate) is paid on October 1 and April 1 of
each year, beginning October 1, 2017. The County has elected not
to establish a debt service fund but will pay the interest on this note
from the Television Reception Improvement Fund.
5. The machinery was purchased on April 1 with the proceeds provided
by the bank loan and has an estimated useful life of 10 years (straight-
line basis).
6. In January 2018, customers remitted fees totaling $2,100 for
December service.
7. Supplies of $800 were received on December 29 and paid in January
2018.
8. Unused supplies on hand amounted to $760 at December 31, 2017.
9. Utilities are paid in the following month. The utility bill for December
2017 was received on January 4, 2018 in the amount of $620. (Utility
bills are recorded through accounts payable.)
10. On December 21, the company placed an order for a new computer-
ized control switch in the amount of $1,500 to be delivered and paid
in January 2018.
Required:
You have been asked to provide financial statements for the upcoming
County Board meeting for the Television Reception Improvement Fund.
Part 1: Assume the County chooses to report the Television Reception
Improvement Fund as a special revenue fund following modified accrual
basis statements. Using the Excel template provided,
a. Prepare journal entries recording the events above for the year ending
December 31, 2017.
b. Post the journal entries to T-accounts.
c. Prepare closing entries.
d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund
Balance.
e. Prepare a Balance Sheet, assuming there are no restricted or commit-
ted fund net resources.
Part 2: Assume the County chooses to report the Television Reception
Improvement Fund as an enterprise fund following accrual basis state-
ments. Using the Excel template provided,
a. Prepare journal entries recording the events above for the year ending
December 31, 2017.
b. Post the journal entries to T-accounts.
c. Prepare closing entries.
O](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb21ba033-5d68-4abc-9629-d398ef7e99b8%2Fa590bec9-82de-4222-9002-b8e876d702d5%2Flsfu1k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:180 Chapter 6
4. The loan from the bank is dated April 1 and is for a five-year period.
Interest (8 percent annual rate) is paid on October 1 and April 1 of
each year, beginning October 1, 2017. The County has elected not
to establish a debt service fund but will pay the interest on this note
from the Television Reception Improvement Fund.
5. The machinery was purchased on April 1 with the proceeds provided
by the bank loan and has an estimated useful life of 10 years (straight-
line basis).
6. In January 2018, customers remitted fees totaling $2,100 for
December service.
7. Supplies of $800 were received on December 29 and paid in January
2018.
8. Unused supplies on hand amounted to $760 at December 31, 2017.
9. Utilities are paid in the following month. The utility bill for December
2017 was received on January 4, 2018 in the amount of $620. (Utility
bills are recorded through accounts payable.)
10. On December 21, the company placed an order for a new computer-
ized control switch in the amount of $1,500 to be delivered and paid
in January 2018.
Required:
You have been asked to provide financial statements for the upcoming
County Board meeting for the Television Reception Improvement Fund.
Part 1: Assume the County chooses to report the Television Reception
Improvement Fund as a special revenue fund following modified accrual
basis statements. Using the Excel template provided,
a. Prepare journal entries recording the events above for the year ending
December 31, 2017.
b. Post the journal entries to T-accounts.
c. Prepare closing entries.
d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund
Balance.
e. Prepare a Balance Sheet, assuming there are no restricted or commit-
ted fund net resources.
Part 2: Assume the County chooses to report the Television Reception
Improvement Fund as an enterprise fund following accrual basis state-
ments. Using the Excel template provided,
a. Prepare journal entries recording the events above for the year ending
December 31, 2017.
b. Post the journal entries to T-accounts.
c. Prepare closing entries.
O
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