(Solved by Humans)-problem 2

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if you can give examples of how you got your answer please Document Preview: Problem # 1 Journal entries can be reconstructed from a balance sheet. The New Durham Utility District was recently established. Its balance sheet, after one year, is presented below. Note the following additional information: • The general fund received all of its revenue, $300 million, from taxes. It had operating expenditures, excluding transfers to other funds, of $200 million. • The general fund transferred $40 million to the debt service fund. Of this, $30 million was to repay the principal on bonds outstanding; $10 million was for interest. • The district issued $260 million in bonds to ?nance construction of a plant and equipment. Of this, it expended $80 million. 1. Prepare journal entries to summarize all transactions in which the district engaged. You need not make closing entries. Do not be concerned as to the speci?c titles of accounts to be debited or credited (e.g., whether a transfer from one fund to another should be called a ‘‘transfer,’’ an ‘‘expense,’’ or an ‘‘expenditure,’’ or whether proceeds from bonds should be called ‘‘bond proceeds’’ or ‘‘revenues’’). 2. Comment on how the district’s government-wide (full accrual) statement of net position would differ from the balance sheet presented. Problem # 2 The newly formed Kingwood School District engaged in the following transactions and other events during the Year: 1. It levied and collected property taxes of $220 million. 2. It issued $60 million in long-term bonds to construct a building. It placed the cash received in a special fund set aside to account for the bond proceeds. 3. During the year it constructed the building at a cost of $50 million. It expects to spend the $10 million balance in the following year. The building has an estimated useful life of 25 years. 4. It incurred $140 million in general operating costs, of which it paid $126 million. It expects to pay the balance early the following year. 5. It transferred $24 million from its general fund to a fund...