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Inglis City had a beginning cash balance in its enterprise fund of $896,335. Dur

ID: 2470871 • Letter: I

Question

Inglis City had a beginning cash balance in its enterprise fund of $896,335. During 2017, the following transactions occurred: 1. Interest received on investments totaled $42,440. 2. The city acquired additional equity investments totaling $75,820. 3. A grant was received from the state in the amount of $50,500 for summer interns. 4. Receipts from sales of goods or services totaled $2,944,600. 5. Payments for supplies were made in the amount of $1,658,600. 6. Payments to employees for salaries amounted to $484,200. 7. Equipment was sold for $58,000. It had a book value of $57,425. 8. $25,400 was transferred to the General Fund. 9. Other cash expenses for operations were $90,800. 10. Long-term debt payments totaled $534,600.

Explanation / Answer

Ans-

Cash Balance            896,335 Opening Inflow Outflow           1 Interest received on investments totaled                42,440              42,440           2 The city acquired additional equity investments totaling                75,820              75,820           3 A grant was received from the state in the amount of 50,500 for summer interns              50,500              50,500           4 Receipts from sales of goods or services totaled           2,944,600         2,944,600           5 Payments for supplies were made in the amount of           1,658,600         1,658,600           6 Payments to employees for salaries amounted to              484,200            484,200           7 Equipment was sold for 28000 It had a book value of $57,425              58,000              28,000           8 25,400 was transferred to the General Fund              25,400           9 Other cash expenses for operations were                90,800              90,800        10 Long-term debt payments totaled              534,600            534,600            896,335         3,065,540         2,844,020 Cash Closing balance (Opening balance+Inflow-Outflow)         1,117,855