6-C. Part 1. Internal Service Fund Transactions The Stores and Service Fund of the City of Monroe had the following account balances as of January 1, 2017 Debits Credits Cash Due from Other Funds Inventory of Supplies Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation-Equipment Accounts Payable Advance from Water Utility Fund Net Position $ 28,000 27,000 27,500 18,000 84,000 $. 30,000 46,000 25,000 19,000 30,000 126,500 $230,500 $230,500 Totals Required: a. Open a general journal for the City of Monroe Stores and Service Fund and record the following transactions (1) A budget was prepared for FY 2017. It was estimated that the price charged other departments for supplies should be 1.25% of cost to achieve the desired breakeven for the year. (2) The amount due from other funds as of January 1, 2017, was collected in full. (3) During the year, supplies were ordered and received in the amount of $307,000. This amount was posted to accounts payable (4) $15,000 of the advance from the Water Utility Fund, originally provided for construction, was repaid. No interest is charged (5) During the year, supplies costing $250,560 were issued to the General Fund, and supplies costing $46,400 were issued to the Water Utility Fund. These funds were charged based on the previously determined markup ($ 313,200 to General Fund and 58,000 to the Water Utility Fund) (6) Operating expenses, exclusive of depreciation, were recorded in accounts payable as follows: Purchasing, $15,000 Warehousing, $16,900; Delivery, $17,500; and Administrative, $9,000 (7) Cash was received from the General Fund in the amount of $310,000 and from the Water Utility Fund in the amount of $50,000 (8) Accounts payable were paid in the amount of $365,000 (9) Depreciation in the amount of $10,000 was recorded for buildings and $4,600 for equipment. b. Post the entries to the Stores and Service Fund ledger (t-accounts). c. Prepare and post an entry closing all nominal accounts to Net position. Compute the balance in the net position accounts, assuming there are no Restricted Net position 6-C. Part 2. Enterprise Fund Transactions The City of Monroe maintains a Water and Sewer Fund to provide utility services to its citizens. As of January 1, 2017, the City of Monroe Water and Sewer Fund had the following account balances Debits Credits Cash Customer Accounts Receivable Estimated Uncollectible Accounts Receivable Materials and Supplies Advance to Stores and Services Fund Restricted Assets Water Treatment Plant in Service Construction Work in Progress Accumulated Depreciation Water Treatment Plant Accounts Payable Revenue Bonds Pavable Net Position $ 98,000 84,000 $4,000 28,000 30,000 117,000 4, 200,000 203,000 1,200,000 97,000 2,500,000 959,000 $4,760,000 Totals $4,760,000 Required: a. Open a general journal for the City of Monroe Water and Sewer Utility Fund and record the following transactions. (1) During the year, sales of water to non-government customers amounted to $1,018,000 and sales of water to the General Fund amounted to $37,000 (2) Collections from non-government customers amounted to $976,000 (3) The Stores and Services Fund repaid $15,000 of the long-term advance to the Water and Sewer Fund (4) Materials and supplies in the amount of $261,000 were received. A liability in that amount was recorded (5) Materials and supplies were issued and were charged to the following accounts: cost of sales and services, $169,500; selling $15,000; administration, $18,000; construction work in progress, $50,000 (6) Payroll costs for the year totaled $416,200 plus $34,200 for the employer's share of payroll taxes. Of that amount, $351,900 was paid in cash, and the remainder was withheld for taxes. The $450,400 (416,200 34,200) was distributed as follows: cost of sales and services, $265,800; sales, $43,900; administration, $91,400; construction work in progress, $49,300 (7) Bond interest (6 %) in the amount of $162,500 was paid (8) Interest in the amount of $17,000 (included in 7 above) was reclassified to Construction Work in Progress (9) Construction projects at the water treatment plant (reflected in the beginning balance of construction in process) were completed in the amount of $203,000, and the assets were placed in service. Payments for these amounts were made in the previous year (no effect on 2017 Statement of Cash Flows) (10) Collection efforts were discontinued on bills totaling $2,890. The unpaid receivables were written off (11) An analysis of customer receivable balances indicated the Estimated Uncollectible Accounts needed to be increased by $5,500 (12) Payment of accounts payable amounted to $302,000. Payments of payroll taxes totaled $95,200 (13) Supplies transferred from the Stores and Services Fund amounted to $58,000. Cash in the amount of $50,000 was paid to the Stores and Services Fund for supplies. (14) Depreciation expense for the year was computed to be $282,000. (15) In accord with the revenue bond indenture, $25,000 cash was transferred from operating cash to restricted assets b. Post the entries to the Water and Sewer Fund ledger (t-accounts) c. Prepare and post an entry closing all nominal accounts to Net position. Compute the balance in the net position accounts, assuming the only restricted assets are those identified with the bond indenture and the outstanding bonds are associated with the purchase of capital assets. 6-C. Part 3. Proprietary Fund Financial Statements Required Prepare for the proprietary funds accounted for in Parts 1 and 2, the following: (1 A Statement of Revenues, Expenses, and Changes in Fund Net position for the Year Ended December 31, 2017 (2) A Statement of Net position, as of December 31, 2017. (3) A Statement of Cash Flows for the Year Ended December 31, 2017. Include restricted assets as a part of cash and cash equivalents for this statement. (Assume any materials and labor attributable to construction in process were paid by year end)