ACCT 410 Week 3 Assignment (UMUC)
Week 3 Assignment
1. Enterprise funds are accounted for like comparable businesses; nevertheless, they have their quirks.
1. It issued $6,000,000 of revenue bonds.
2. For $4,500,000, it purchased the plant and equipment of the private water company that previously served the area.
3. It incurred $500,000 in costs to improve and expand its plant and equipment.
4. It billed customers for $1.8 million, of which it collected $1.5 million.
5. It billed and collected $200,000 in tap connection fees from developers. The actual cost of the hookups (paid in cash) was $140,000.
6. It incurred the following operating costs (all paid in cash):
• Purchases of water, $850,000
• Labor and contract services, $320,000
• Interest, $80,000
• Supplies and miscellaneous, $60,000
7. It recognized depreciation of $350,000 on its capital assets.