The County of Maxnell decides to create a waste management department and offer its services to the public for a fee. As a result, county officials plan to account for this activity as an enterprise fund. Assume the information is gathered so that the county can prepare fund financial statements. Only entries for the waste management department are required here: January 1 Receive unrestricted funds of $248,000 from the general fund as permanent financing. Febrauary 1 Borrow an additional $224,000 from a local bank at a 12 percent annual interest rate. March 1 Order a truck at an expected cost of $140,000. April 1 Receive the truck and make full payment. The actual cost including transportation was $143,000. The truck has a 10-year life and no residual value. The county uses straight-line depreciation. May 1 Receive a $23,600 cash grant from the state to help supplement the pay of the department workers. According to the grant, the money must be used for that purpose. June 1 Rent a garage for the truck at a cost of $3,600 per month. The county pays 12 months of rent in advance. The contract has no provisions for extensions or purchases. July 1 Charge citizens $21,000 for services. Of this amount, $18,300 is collected. August 1 Make a $14,500 cash payment on the 12 percent note of February 1. This payment covers both interest and principal. September 1 Pay salaries of $20,300 using the grant money received on May 1. October 1 Pay truck maintenance costs of $1,800. November 1 Pay additional salaries of $10,200, first using the rest of the grant money received May 1. December 31 Send invoices totaling $22,300 to customers for services during the past six months. Collect $4,200 of the cash immediately. December 31 A new government landfill opened this year. At the end of the year, it is 12 percent filled. The estimated current cost for the eventual closure of this facility is $3.3 million, although no payments will be made for approximately nine years

The County of Maxnell decides to create a waste management department and offer its services to the public for a fee. As a result, county officials plan to account for this activity as an enterprise fund. Assume the information is gathered so that the county can prepare fund financial statements. Only entries for the waste management department are required here: January 1 Receive unrestricted funds of $248,000 from the general fund as permanent financing. Febrauary 1 Borrow an additional $224,000 from a local bank at a 12 percent annual interest rate. March 1 Order a truck at an expected cost of $140,000. April 1 Receive the truck and make full payment. The actual cost including transportation was $143,000. The truck has a 10-year life and no residual value. The county uses straight-line depreciation. May 1 Receive a $23,600 cash grant from the state to help supplement the pay of the department workers. According to the grant, the money must be used for that purpose. June 1 Rent a garage for the truck at a cost of $3,600 per month. The county pays 12 months of rent in advance. The contract has no provisions for extensions or purchases. July 1 Charge citizens $21,000 for services. Of this amount, $18,300 is collected. August 1 Make a $14,500 cash payment on the 12 percent note of February 1. This payment covers both interest and principal. September 1 Pay salaries of $20,300 using the grant money received on May 1. October 1 Pay truck maintenance costs of $1,800. November 1 Pay additional salaries of $10,200, first using the rest of the grant money received May 1. December 31 Send invoices totaling $22,300 to customers for services during the past six months. Collect $4,200 of the cash immediately. December 31 A new government landfill opened this year. At the end of the year, it is 12 percent filled. The estimated current cost for the eventual closure of this facility is $3.3 million, although no payments will be made for approximately nine years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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January	1	Receive unrestricted funds of $248,000 from the general fund as permanent financing.
Febrauary	1	Borrow an additional $224,000 from a local bank at a 12 percent annual interest rate.
March	1	Order a truck at an expected cost of $140,000.
April	1	Receive the truck and make full payment. The actual cost including transportation was $143,000. The truck has a 10-year life and no residual value. The county uses straight-line depreciation.
May	1	Receive a $23,600 cash grant from the state to help supplement the pay of the department workers. According to the grant, the money must be used for that purpose.
June	1	Rent a garage for the truck at a cost of $3,600 per month. The county pays 12 months of rent in advance. The contract has no provisions for extensions or purchases.
July	1	Charge citizens $21,000 for services. Of this amount, $18,300 is collected.
August	1	Make a $14,500 cash payment on the 12 percent note of February 1. This payment covers both interest and principal.
September	1	Pay salaries of $20,300 using the grant money received on May 1.
October	1	Pay truck maintenance costs of $1,800.
November	1	Pay additional salaries of $10,200, first using the rest of the grant money received May 1.
December	31	Send invoices totaling $22,300 to customers for services during the past six months. Collect $4,200 of the cash immediately.
December	31	A new government landfill opened this year. At the end of the year, it is 12 percent filled. The estimated current cost for the eventual closure of this facility is $3.3 million, although no payments will be made for approximately nine years.

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I need help with this question, I am on the december entry and need help with the Record entry to recognize portion of total costs for eventual closure of landfill.

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