The Sherill Utility District was recently established. Its balance sheet, after year one, is presented below. Note the following additional information.
The general fund received all of its revenue, $150 million, from taxes. It had operating expenditured, excluding transfers to other funds, of $100 million.
The general fund transferred $20million to the debt service fund. Of this, $15 million was to repay the principal on bonds outstanding; $5 million was for interest.
The district issued $130 million in bonds to finance construction of a plant and equipment. Of this, it expended $40 million.
Prepare journal entries to summarize all transactions in which the district engaged. You need notmake closing entries. Do not be concerned as to the specific titles of accounts to be debited or credited.
Comment on how the district's government-wide (full-accrual) statement of net position would differ from the balance sheet presented