Augusta has a municipal water and gas utility district (MUD). The trial balance on January 1, 20X1,
Question:
Augusta has a municipal water and gas utility district (MUD). The trial balance on January 1, 20X1, was as follows:
1. Charges to customers for water and gas were \(\$ 420,000\); collections were \(\$ 432,000\).
2. A loan of \(\$ 30,000\) for two years was received from the general fund.
3. The water and gas lines were extended to a new development at a cost of \(\$ 75,000\). The contractor was paid.
4. Supplies were acquired from central stores (internal service fund) for \(\$ 12,400\). Operating expenses were \(\$ 328,000\), and interest expense was \(\$ 30,000\). Payment was made for the interest and the payable to central stores, and \(\$ 325,000\) of the vouchers were paid.
5. Adjusting entries were as follows: Bad Debt Expense, \(\$ 6,300\); Depreciation Expense, \(\$ 32,000\); Supplies expense, \(\$ 15,200\).
\section*{Required}
a. Prepare entries for the MUD enterprise fund for \(20 \mathrm{X} 1\), and prepare closing entries.
b. Prepare a statement of net assets for the fund for December 31, 20X1.
c. Prepare a statement of revenues, expenses, and changes in fund net assets for 20X1. Assume that the \(\$ 500.000\) of the \(6 \%\) bonds are related to the net capital assets of land, and plant and equipment
d. Prepare a statement of cash flows for \(20 \mathrm{X} 1\).
Step by Step Answer:
Advanced Financial Accounting
ISBN: 9780072444124
5th Edition
Authors: Richard E. Baker, Valdean C. Lembke, Thomas E. King