Journalize the Following Utility Transactions in the Hazzard County Enterprise

question 31

Essay

Journalize the following utility transactions in the Hazzard County Enterprise Fund:
1.The utility sold $4,000,000 of 6.5% revenue bonds at 98 on July 1,2014 (an interest payment date).The bond proceeds are to be used for new plant construction and the issue will mature in 20 years.Interest is paid semi-annually on July 1 and January 1.
2.Depreciation for the year-ended December 31,2014 included $300,000 for buildings and $190,000 for equipment.
3.The utility paid $600,000 in construction costs for the new plant.The plant is still under construction.
4.Interest on the revenue bonds was accrued at year-end,December 31,2014.Straight-line amortization is used for bond discounts and premiums.

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Definitions:

Thyroid

A gland in the neck that produces hormones regulating growth and metabolism.

Adrenal

Pertaining to the adrenal glands, small glandular organs located above the kidneys that produce hormones like adrenaline and corticosteroids.

Parathyroid

Small glands located behind the thyroid that play a crucial role in regulating the body's calcium levels.

Stressor

Any stimulus that produces stress.