Journalize the Following Utility Transactions in the Hazzard County Enterprise

question 8

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 1,2011 (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 31,2011 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 31,2011.Straight-line amortization is used for bond discounts and premiums.

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Definitions:

Second Poorest Fifth

A reference to the quintile in a distribution of income or wealth that is second from the bottom, denoting the group with more resources than only the poorest fifth but still below the majority.

Well-Being

The state of being comfortable, healthy, or happy, reflecting the overall quality of life.

Well-Being

A comprehensive measure of an individual's overall health, happiness, and life satisfaction.

Gini Coefficient

An indicator of how unevenly income is distributed in a population, with 0 representing complete equality and 1 signifying absolute inequality.