The Town of Weston has a Water Utility fund with the following trial balance as of July 1, 2019 the first day of the fiscal year. Debits: Cash $250,000; Customer Accounts Receivable $200,000;Material and Supplies $120,000; Restricted Assets $250,000; Utility Plant in Service $7,000,000; Construction Work in Progress $180,000; Total $8,000,000 Credit: Allowance for Uncollectible Accounts $30,000; Accumulated depreciation - Utility Plant $2,600,000; Account Payable $120,000; Accrued Expenses Payable $75,000; Revenue Bonds Payable $3,600,000; Net Position $1,575,000; Total $8,000,000 During the year eded June 30, 2020, the following transactions and events occured in the Town of Weston Water Utility Fund. 1. Accured expenses at July 1, were paid in cash. 2. Billings to nongovernmental customers for water usage fir the year amounted to $1,380,000; billings to the General Fund amounted to $96,000. 3. Liabilities for the following were recorded during the year materials and supplies $185,000 Cost of sales and service $345,000 Administrative expenses $202,000 Construstion work in progress $220,000 4. Materials and supplies were used in the amount of $275,000, all forcosts of sales and service. 5. After collection efforts were unsuccessful, $9,000 of old accounts receivables were written off. 6. Accounts receivable collections totaled $1,459,000 from nongovernmental customers and 448,400 from the General Fund. 7. $1,035,000 of accounts payable were paid in cash. 8. One year's interestin the amount of $175,000 was paid. 9. Construstion was completed on plant assests costing $250,000; that amount was transfered to Utility Plant in Srevice. 10. Depreciaition was recorded in the amount of $260,000. 11. The allowance for Uncollectible Accounts was increasedby $9,900. 12. As required by the loan agreement, cash in the amount of $100,000 was transfered to Restricted Assets for eventual redemption of the bonds. 13. Accrued expenses, all related to costs of sales and services, amounted to $83,000. 14. 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, 2020.
The Town of Weston has a Water Utility fund with the following
Debits: Cash $250,000; Customer Accounts Receivable $200,000;Material and Supplies $120,000; Restricted Assets $250,000; Utility Plant in Service $7,000,000; Construction Work in Progress $180,000; Total $8,000,000
Credit: Allowance for Uncollectible Accounts $30,000;
During the year eded June 30, 2020, the following transactions and events occured in the Town of Weston Water Utility Fund.
1. Accured expenses at July 1, were paid in cash.
2. Billings to nongovernmental customers for water usage fir the year amounted to $1,380,000; billings to the General Fund amounted to $96,000.
3. Liabilities for the following were recorded during the year
materials and supplies $185,000
Cost of sales and service $345,000
Administrative expenses $202,000
Construstion work in progress $220,000
4. Materials and supplies were used in the amount of $275,000, all forcosts of sales and service.
5. After collection efforts were unsuccessful, $9,000 of old accounts receivables were written off.
6. Accounts receivable collections totaled $1,459,000 from nongovernmental customers and 448,400 from the General Fund.
7. $1,035,000 of accounts payable were paid in cash.
8. One year's interestin the amount of $175,000 was paid.
9. Construstion was completed on plant assests costing $250,000; that amount was transfered to Utility Plant in Srevice.
10. Depreciaition was recorded in the amount of $260,000.
11. The allowance for Uncollectible Accounts was increasedby $9,900.
12. As required by the loan agreement, cash in the amount of $100,000 was transfered to Restricted Assets for eventual redemption of the bonds.
13. Accrued expenses, all related to costs of sales and services, amounted to $83,000.
14. 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, 2020.
d. Prepare a Statement of Cash Flows for the year ended June 30, 2020. 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.
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