The Green Hills Water District was established on January 1 to provide water service to a suburban development. It accounts for its operations in a single enterprise fund. During the year it engaged in the following transactions:
It issued $6 million of revenue bonds.
For $4.5 million, it purchased the plant and equipment of the private water company that previously served the area.
It incurred $500,000 in costs to improve and expand its plant and equipment.
It billed customers $1.8 million of which it collected $1.5 million.
It billed and collected $200,000 in tap connection fees from developers. The actual cost of the hookups (paid in cash) was $140,000.
In incurred the following operating costs (all paid in cash):
Purchases of water, $850,000
Labor and contract services, $320,000
Supplies and miscellaneous, $60,000
It recognized depreciation of $350,000 on its capital assets.
Prepare Journal entries to record the transactions.
Prepare a year end statement of revenues, expenses and changes in net assets.
Prepare a year end balance sheet.