Question

The Town of Elizabeth operates the old train station as an enterprise fund. The train station is on the national register of historic buildings. Since the town has held the building for such a long time, the Central Station Fund no long-term debt. The only capital assets recorded by the Central Station Fund are machinery and equipment. Businesses rent space in the building and the town provides all services related to the operation and maintenance of the building. Following is information related to the fund’s 2017 operating activities. 1. Rental income of $94,444was accrued. Subsequently, cash in the amount of $90,210 was received on accounts 2. Cash expenses for the period included: administrative services, $25,205; maintenance and repairs, $72,882; supplies and materials, $7,792; and utilities, $30,124 3. The Central Station Fund received a $60,000 transfer of funds from the General Fund 4. Adjustments were made for depreciation ($3519 and for uncollectible accounts ($667) 5. At the end of the period, nominal accounts were closed Required: a. Prepare general journal entries to record the Central Station Fund’s operating activities for the year. b. Prepare a statement of revenues, expenses and changes in fund net. The net position balance at the beginning of the period was $60,129.

Answer 1

a. Prepare general journal entries to record the Central Station Fund’s operating activities for the year.

		Debit	Credit
1.	Accounts receivables	94,444
	Rental Sales		94,444
	Cash	90,210
	Accounts receivables		90,210
2.	Administrative service expense	25,205
	Maintenance and Repairs expense	72,882
	Supplies and Materials expense	7,792
	Utilities expense	30,124
	Cash		136,003
3.	Cash	60,000
	Interfund Transfer in		60,000
4.	Depreciation expense	3,519
	Provision for uncollectible accounts	667
	Allowance for Depreciation		3,519
	Allowance for uncollectible accounts		667
5.	Rental Sales	94,444
	Interfund Transfer in	60,000
	Administrative service expense		25,205
	Maintenance and Repairs expense		72,882
	Supplies and Materials expense		7,792
	Utilities expense		30,124
	Depreciation expense		3,519
	Provision for uncollectible accounts		667
	Net Assets - Unrestricted		14,255

b. Prepare a statement of revenues, expenses and changes in fund net.

.