The Town of Weston has a Water Utility Fund with the following trial balance as
ID: 2550056 • Letter: T
Question
The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year:
During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund:
Accrued expenses at July 1 were paid in cash.
Billings to nongovernmental customers for water usage for the year amounted to $1,383,000; billings to the General Fund amounted to $110,000.
Liabilities for the following were recorded during the year:
Materials and supplies were used in the amount of $278,000, all for costs of sales and services.
$14,200 of old accounts receivable were written off.
Accounts receivable collections totaled $1,482,800 from nongovernmental customers and $49,000 from the General Fund.
$1,047,800 of accounts payable were paid in cash.
One year’s interest in the amount of $177,200 was paid.
Construction was completed on plant assets costing $253,000; that amount was transferred to Utility Plant in Service.
Depreciation was recorded in the amount of $263,100.
Interest in the amount of $25,300 was reclassified to Construction Work in Progress. (This was previously paid in item 8.)
The Allowance for Uncollectible Accounts was increased by $10,000.
As required by the loan agreement, cash in the amount of $103,000 was transferred to Restricted Assets for eventual redemption of the bonds.
Accrued expenses, all related to costs of sales and services, amounted to $92,000.
Nominal accounts for the year were closed.
Required:
a. Record the transactions for the year in general journal form.
b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
c. Prepare a Statement of Net Position as of June 30, 2017.
d. Prepare a Statement of Cash Flows for the year ended June 30, 2017. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents.
Explanation / Answer
1 GENRAL JOURNAL Dr Cr 1 Accrued Expenses 77300 To Cash 77300 2 Customer accounts receivable 1493000 To Billing for water 1383000 To Billing for General Fund 110000 3 Matrial Supply 189000 To Accounts Payable 189000 4 Costs of sales and services 363000 To Accounts Payable 363000 5 Administrative expenses 204000 To Accounts Payable 204000 6 Construction work in progress 222000 To Accounts Payable 222000 7 Accounts Written off 14200 To Customer accounts receivable 14200 8 Cash 1482800 To Customer accounts receivable 1482800 9 Cash 49000 To Customer accounts receivable 49000 10 Accounts Payable 1047800 To cash 1047800 11 Interest 177200 to cash 177200 13 Construction work in progress 25300 to interest 25300 14 Utility Plant and Services 253000 To Construction work in progress 253000 15 Depriciation 263100 To Accumulated depreciation—utility plant 263100 16 Bed debts allownce 10000 To Allownce for uncollectible account 10000 17 Restricted assets (cash) 103000 To Cash 103000 13 cost of sales & Services 92000 To Accrued Expenses 92000 Assumed to be not included in the figure of Cost of sale & services expenses 2 statement of Revenue & Expenses Dr Cr Particulars Amount Particulars Amount Material Supply 278000 To Billing for water 1383000 Costs of sales and services 455000 To Billing for General Fund 110000 Administrative expenses 204000 Accounts Written off 14200 Interest 151900 Depriciation 263100 Bed debts allownce 10000 Excess of Funds over expenes 116800 1493000 1493000 3 statement of changes in fund net position Particulars Amount Particulars Amount Opening Net Position 1678800 Excess of Funds over expenes 116800 Closing Net Position 1795600 1795600 1795600 statement net position Particulars Dr Cr Cash 459500 Customer accounts receivable 148800 Allowance for uncollectible accounts 40300 Materials and supplies 32200 Restricted assets (cash) 356000 Utility plant in service 7257000 Accumulated depreciation—utility plant 2866100 Construction work in progress 97300 Accounts payable 53800 Accrued expenses payable 92000 Revenue bonds payable 3503000 Net position 1795600 8350800 8350800 statement of Cash Flow Cash From Operating Activities Customer Account receivable 1482800 Fund Account Receivable 49000 Accrued Expenses Paid -77300 Accounts Payable -825800 Total A 628700 Cash From Investing Activities Construction work in progress -222000 Total B -222000 Cash From Financing Activites Interest Paid -177200 Total C -177200 Total Cash Inflow (Outflow) 229500 Opening Cash & equvilents cash 333000 Restricted Cash 253000 Total Opening Cash 586000 Opening Cash + Total Inflow (OutFlow) 815500 Closing Cash 459500 Closing Restricted Cash 356000 Clsoing Cash 815500 Note Customer Account Receivable Accounts Payable Openin Balance 201800 Openin Balance 123600 Total Billing For the Year 1493000 Total Due For the Year( entry 3,4,5,6) 978000 Total Collection For the Year -1531800 Total Payment For the Year -1047800 Bad debts -14200 Net Balance at the end of Year 53800 Net Balance at the end of Year 148800 Balance Material Construction WIP Opening Material 121200 Opening Balance 103000 Purchased during the year 189000 Expenes for the Year 222000 Used during the year -278000 Interest Capitalize 25300 closing Balance of Material 32200 Transfer to Plant -253000 Closing Balances 97300 other accounts of statement of net positions are self explanatory , which can be tallied by posting ledger entries in respective accounts
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.