P$7-4($Journal entries and financial statements for an Enterprise Fund$)$

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 $30,2013.$

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

Land

Buildings

$$,8,000$

Equipment

$19,000,000$

Accounts payable

$5,000,000$

$1,800,000$

$(12,000)$

The city purchased the airport for the fair market value of its net assets.

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.

Supplies totaling $$4,500$ were purchased on credit.

Collections from airlines totaled $$3,850,000.$

Salaries of $$200,000$ were paid to airport personnel employed by the city.

Utility bills totaling $$100,000$ were paid.

A notice was received from the Last District Bankruptcy Court. Air Chance was declared bankrupt. The airport collected only $$1,000$ on its bill of $$3,000.$

The airport obtained $$3,000,000$ of additional permanent contributions from the General Fund to help finance improvements at the airport.

Interest of $$1,825,000$ was paid to the bondholders.

Supplies used during the year totaled $$3,600.$

The General Fund made an advance to the airport of $$1,500,000.$ Airport management plans to repay the advance in full in $2016.$

A contract was signed with The Construction Company for the new facilities for a total price of $$5,000,000.$

The Municipal Airport Fund invested $$2,000,000$ in CDs$.$

The Municipal Airport Fund received $$315,000$ upon redeeming $$300,000$ of the CDs mentioned in transaction $13.$

The airport purchased additional equipment for $$300,000$ cash.

Interest expense of $$350,000$ was accrued at the end of the year.

Other accrued expenses totaled $$55,000.$

Depreciation was recorded as follows:

Buildings

$$500,000$

Equipment

$180,000$

$$12,500$ of accounts payable was paid.

$$150,000$ of interest revenue was received.

Excess cash of $$4,500,000$ was invested in CDs$.$