The following transactions relate to the City of Arlington’s Municipal Airport Fund for the fiscal.. 1 answer below »

 
   

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The following transactions relate to the City of Arlington’s Municipal Airport Fund for the fiscal year ended June 30, 2013. Prepare (a) The journal entries necessary to record these transactions in the Municipal Airport Fund; (b) A trial balance as of June 30, 2013; (c) A statement of revenues, expenses, and changes in net position for the 2012– 2013 fiscal year, and (d) A statement of net position as of June 30, 2013. 1. The General Fund made a permanent contribution of $ 2,000,000 for working capital to start a municipal airport. The city used part of that money, together with the proceeds from a $ 25,000,000 revenue bond issue, to purchase an airport from a private company. The fair values of the assets and liabilities were as follows: Accounts receivable……… $ 8,000 Land ………….. 19,000,000 Buildings …………. 5,000,000 Equipment …………. 1,800,000 Accounts payable ……… … (12,000) The city purchased the airport for the fair market value of its net assets. 2. Airlines were billed $ 3,900,000 for rental rights to use ticket counters and landing and maintenance space. Of this amount, $ 3,890,000 is expected to be collectible. 3. Supplies totaling $ 4,500 were purchased on credit. 4. Collections from airlines totaled $ 3,850,000. 5. Salaries of $ 200,000 were paid to airport personnel employed by the city. 6. Utility bills totaling $ 100,000 were paid. 7. A notice was received from the Last District Bankruptcy Cou