! 16 Required information Exercise 7-25 (Algo) Enterprise Fund Journal Entries and Financial Statements [LO 7-5) (The following information applies to the questions displayed below.) 0.34/1.25 points awarded Following is the June 30, 2022, statement of net position for the City of Bay Lake Water Utility Fund. Scored eBook $ 1,776,616 307,122 500,100 29, 317 82,017 2,695,172 References 9,201 CITY OF BAY LAKE Water Utility Fund Statement of Fund Net Position June 30, 2022 Assets Current assets: Cash and investments Accounts receivable (net of $13,378 provision for uncollectible accounts) Accrued utility revenue Due from General Fund Interest receivable Total current assets Restricted assets: Cash Capital assets: Land Buildings (net of $3,422,984 in accumulated depreciation) Machinery and equipment (net of $5, 134,40in accumulated depreciation) Total capital assets (net) Total Assets Liabilities Current liabilities: Accounts payable Interest payable Current portion of long-term debt Total current liabilities Liabilities payable from restricted assets: Customer deposits Long-term liabilities: Revenue bond payable Total Liabilities Net Position Net investment in capital assets Unrestricted $1,782,497 5,218,959 8,495,811 15,497,267 18,201,640 532,500 131,885 410,000 1,074,385 9,201 11,890,000 12,973,586 3,175,094 2,052,960 $ 5,228,054 Following is the information of the Water Utility Fund for fiscal year 2023. 1. The amount in the Accrued Utility Revenue account was reversed. 2. Billings to customers for water usage during fiscal year 2023 totaled $2,828,336; $183,842 of the total was billed to the General Fund. 3. Cash in the amount of $246,557 was received. The cash was for interest earned on investments and $77,761 in accrued interest. 12, 9/3, JUU TULALlalllules Net Position Net investment in capital assets Unrestricted 16 3,175,094 2,052,960 $ 5,228,054 0.34/1.25 points awarded Scored eBook 5. Cash receipts Following is the information of the Water Utility Fund for fiscal year 2023. 1. The amount in the Accrued Utility Revenue account was reversed. 2. Billings to customers for water usage during fiscal year 2023 totaled $2,828,336; $183,842 of the total was billed to the General Fund. 3. Cash in the amount of $246,557 was received. The cash was for interest earned on investments and $77,761 in accrued interest. 4. Expenses accrued for the period were management and administration, $341,774; maintenance and distribution, $653,474; and treatment plant, $659,294. receipts for customer deposits totaled $2,305. 6. Cash collections on customer accounts totaled $2,795,445, of which $198,999 was from the General Fund. 7. Cash payments for the period were as follows: Accounts Payable, $1,389,076; interest (which includes the interest payable), $376,013, bond principal, $410,000; machinery and equipment, $598,015; and return of customer deposits, $932 8. A state grant amounting to $485,420 was received to help pay for new water treatment equipment. 9. Accounts written off as uncollectible totaled $10,233. 10. The utility fund transferred $817,580 in excess operating income to the General Fund. 11. Adjusting entries for the period were recorded as follows: depreciation on buildings was $245,333 and on machinery and equipment was $367,999; the allowance for uncollectible accounts was increased by $15,243; an accrual for unbilled customer receivables was made for $715,490; accrued interest income was $16,199; and accrued interest expense was $62,766. 12. The Revenue Bond Payable account was adjusted by $410,000 to record the current portion of the bond. 13. Closing entries and necessary adjustments were made to the net position accounts. References Exercise 7-25 (Algo) Part d d. Prepare a statement of cash flows for the Water Utility Fund as of June 30, 2023. (Cash outflows should be indicated by a minus sign.) CITY OF BAYLAKE Water Utility Fund Statement of Cash Flows For the Year Ended June 30, 2023 Cash Flows from Operating Activities: Cash Received from Customers Cash Paid To Employees and Suppliers NILIAL x X 16 0.34/1.25 points awarded CITY OF BAYLAKE Water Utility Fund Statement of Cash Flows For the Year Ended June 30, 2023 Cash Flows from Operating Activities: Cash Received from Customers Cash Paid To: Employees and Suppliers Net Cash Provided by Operations Cash Flows from Noncapital Financing Activities: Transfer to General Fund diCustomer Deposits Scored 0 XX eBook 0 References Net Cash Used by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Proceeds from Capital Grant Purchase of Machinery and Equipment Principal Paid on Capital Debt Interest Paid on Capital Debt >>>> 0 Net Cash Used by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest Received an Investments Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1, 2022 Cash and Cash Equivalents, June 30, 2023 0 0 Reconciliation of Cash and Cash Equivalents to the Balance Sheet Beginning End of Year of Year Cash and Cash Equivalents in Current and Accrued Assets Restricted Cash and Cash Equivalents Total Cash and Cash Equivalents S 0 $ 0 > X Reconciliation of Operating Income to Net Cash Provided by Operations Operating Income Adjustments: Depreciation Expense Uncollectible Accounts 3 Inernnen in Accountr Darinkle Cash Flows from Noncapital Financing Activities: Transfer to General Fund Customer Deposits 16 0 0.34/1.25 points awarded Net Cash Used by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Proceeds from Capital Grant Purchase of Machinery and Equipment Principal Paid on Capital Debt Interest Paid on Capital Debt Scored eBook 0 Net Cash Used by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest Received on Investments Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1, 2022 Cash and Cash Equivalents, June 30, 2023 References 0 S 0 Reconciliation of Cash and Cash Equivalents to the Balance Sheet End of Year Beginning of Year Cash and Cash Equivalents in Current and Accrued Assets Restricted Cash and Cash Equivalents Total Cash and Cash Equivalents 0 0 XX Reconciliation of Operating Income to Net Cash Provided by Operations Operating Income Adjustments: Depreciation Expense Uncollectible Accounts Increase in Accounts Receivable Increase in Accrued Utility Revenue Decrease in Due from General Fund Increase in Accounts Payable Net Cash Provided by Operating Activities S 0 * Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. ! 16 Required information Exercise 7-25 (Algo) Enterprise Fund Journal Entries and Financial Statements [LO 7-5) (The following information applies to the questions displayed below.) 0.34/1.25 points awarded Following is the June 30, 2022, statement of net position for the City of Bay Lake Water Utility Fund. Scored eBook $ 1,776,616 307,122 500,100 29, 317 82,017 2,695,172 References 9,201 CITY OF BAY LAKE Water Utility Fund Statement of Fund Net Position June 30, 2022 Assets Current assets: Cash and investments Accounts receivable (net of $13,378 provision for uncollectible accounts) Accrued utility revenue Due from General Fund Interest receivable Total current assets Restricted assets: Cash Capital assets: Land Buildings (net of $3,422,984 in accumulated depreciation) Machinery and equipment (net of $5, 134,40in accumulated depreciation) Total capital assets (net) Total Assets Liabilities Current liabilities: Accounts payable Interest payable Current portion of long-term debt Total current liabilities Liabilities payable from restricted assets: Customer deposits Long-term liabilities: Revenue bond payable Total Liabilities Net Position Net investment in capital assets Unrestricted $1,782,497 5,218,959 8,495,811 15,497,267 18,201,640 532,500 131,885 410,000 1,074,385 9,201 11,890,000 12,973,586 3,175,094 2,052,960 $ 5,228,054 Following is the information of the Water Utility Fund for fiscal year 2023. 1. The amount in the Accrued Utility Revenue account was reversed. 2. Billings to customers for water usage during fiscal year 2023 totaled $2,828,336; $183,842 of the total was billed to the General Fund. 3. Cash in the amount of $246,557 was received. The cash was for interest earned on investments and $77,761 in accrued interest. 12, 9/3, JUU TULALlalllules Net Position Net investment in capital assets Unrestricted 16 3,175,094 2,052,960 $ 5,228,054 0.34/1.25 points awarded Scored eBook 5. Cash receipts Following is the information of the Water Utility Fund for fiscal year 2023. 1. The amount in the Accrued Utility Revenue account was reversed. 2. Billings to customers for water usage during fiscal year 2023 totaled $2,828,336; $183,842 of the total was billed to the General Fund. 3. Cash in the amount of $246,557 was received. The cash was for interest earned on investments and $77,761 in accrued interest. 4. Expenses accrued for the period were management and administration, $341,774; maintenance and distribution, $653,474; and treatment plant, $659,294. receipts for customer deposits totaled $2,305. 6. Cash collections on customer accounts totaled $2,795,445, of which $198,999 was from the General Fund. 7. Cash payments for the period were as follows: Accounts Payable, $1,389,076; interest (which includes the interest payable), $376,013, bond principal, $410,000; machinery and equipment, $598,015; and return of customer deposits, $932 8. A state grant amounting to $485,420 was received to help pay for new water treatment equipment. 9. Accounts written off as uncollectible totaled $10,233. 10. The utility fund transferred $817,580 in excess operating income to the General Fund. 11. Adjusting entries for the period were recorded as follows: depreciation on buildings was $245,333 and on machinery and equipment was $367,999; the allowance for uncollectible accounts was increased by $15,243; an accrual for unbilled customer receivables was made for $715,490; accrued interest income was $16,199; and accrued interest expense was $62,766. 12. The Revenue Bond Payable account was adjusted by $410,000 to record the current portion of the bond. 13. Closing entries and necessary adjustments were made to the net position accounts. References Exercise 7-25 (Algo) Part d d. Prepare a statement of cash flows for the Water Utility Fund as of June 30, 2023. (Cash outflows should be indicated by a minus sign.) CITY OF BAYLAKE Water Utility Fund Statement of Cash Flows For the Year Ended June 30, 2023 Cash Flows from Operating Activities: Cash Received from Customers Cash Paid To Employees and Suppliers NILIAL x X 16 0.34/1.25 points awarded CITY OF BAYLAKE Water Utility Fund Statement of Cash Flows For the Year Ended June 30, 2023 Cash Flows from Operating Activities: Cash Received from Customers Cash Paid To: Employees and Suppliers Net Cash Provided by Operations Cash Flows from Noncapital Financing Activities: Transfer to General Fund diCustomer Deposits Scored 0 XX eBook 0 References Net Cash Used by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Proceeds from Capital Grant Purchase of Machinery and Equipment Principal Paid on Capital Debt Interest Paid on Capital Debt >>>> 0 Net Cash Used by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest Received an Investments Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1, 2022 Cash and Cash Equivalents, June 30, 2023 0 0 Reconciliation of Cash and Cash Equivalents to the Balance Sheet Beginning End of Year of Year Cash and Cash Equivalents in Current and Accrued Assets Restricted Cash and Cash Equivalents Total Cash and Cash Equivalents S 0 $ 0 > X Reconciliation of Operating Income to Net Cash Provided by Operations Operating Income Adjustments: Depreciation Expense Uncollectible Accounts 3 Inernnen in Accountr Darinkle Cash Flows from Noncapital Financing Activities: Transfer to General Fund Customer Deposits 16 0 0.34/1.25 points awarded Net Cash Used by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Proceeds from Capital Grant Purchase of Machinery and Equipment Principal Paid on Capital Debt Interest Paid on Capital Debt Scored eBook 0 Net Cash Used by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest Received on Investments Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1, 2022 Cash and Cash Equivalents, June 30, 2023 References 0 S 0 Reconciliation of Cash and Cash Equivalents to the Balance Sheet End of Year Beginning of Year Cash and Cash Equivalents in Current and Accrued Assets Restricted Cash and Cash Equivalents Total Cash and Cash Equivalents 0 0 XX Reconciliation of Operating Income to Net Cash Provided by Operations Operating Income Adjustments: Depreciation Expense Uncollectible Accounts Increase in Accounts Receivable Increase in Accrued Utility Revenue Decrease in Due from General Fund Increase in Accounts Payable Net Cash Provided by Operating Activities S 0 * Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted