6C 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, 2020, the City of Monroe Water and Sewer Fund had the following account balances Debits Credits Cash $ 102,000 Customer Accounts Receivable 80,000 Estimated Uncollectible Accounts Receivable $ 4,500 Materials and Supplies 28,000 Advance to Stores and Services Fund 30,000 Restricted Assets 117,000 Water Treatment Plant in Service 4,200,000 Construction Work in Progress 203,000 Accumulated Depreciation Water Treatment Plant 1,200,000 Accounts Payable 96,500 Revenue Bonds Payable 2,500,000 Net Position 959,000 Totals $ 4,760,000 $ 4,760,000 Required a Record the following transactions in the general journal of the City of Monroe Water and Sewer Utility Fund (1) During the year, sales of water to non government customers amounted to $1,025,000 and sales of water to the General Fund amounted to $37,000 (2) Collections from non government customers amounted to $983,000 (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, $180,000 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 employers 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) In accord with the revenue bond indenture, $25,000 cash was transferred from operating cash to restricted assets (9) Construction projects at the water treatment plant (reflected in the beginning balance of construction in process) were completed in the amount of $214,000, and the assets were placed in service Payments for these amounts were made in the previous year (no effect on 2020 Statement of Cash Flows) (10) Collection efforts were discontinued on bills totaling $3,500 The unpaid receivables were written off (11) An analysis of customer receivable balances indicated the Estimated Uncollectible Accounts needed to be increased by $6,500 (12) Payment of accounts payable amounted to $332,000 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 $267,000 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

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6C. Part 2. Enterprise Fund Transactions The City of Monroe maintains a Water and Sewer Fund to provide utility services to its citizens. As of

6C. 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, 2020, the City of Monroe Water and Sewer Fund had the following account balances:

	Debits		Credits
Cash	$	102,000
Customer Accounts Receivable		80,000
Estimated Uncollectible Accounts Receivable			$	4,500
Materials and Supplies		28,000
Advance to Stores and Services Fund		30,000
Restricted Assets		117,000
Water Treatment Plant in Service		4,200,000
Construction Work in Progress		203,000
Accumulated Depreciation - Water Treatment Plant				1,200,000
Accounts Payable				96,500
Revenue Bonds Payable				2,500,000
Net Position				959,000
Totals	$	4,760,000	$	4,760,000

Required: a. Record the following transactions in the general journal of the City of Monroe Water and Sewer Utility Fund.

(1) During the year, sales of water to non-government customers amounted to $1,025,000 and sales of water to the General Fund amounted to $37,000.
(2) Collections from non-government customers amounted to $983,000.
(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, $180,000; 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 employers 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) In accord with the revenue bond indenture, $25,000 cash was transferred from operating cash to restricted assets.
(9) Construction projects at the water treatment plant (reflected in the beginning balance of construction in process) were completed in the amount of $214,000, and the assets were placed in service. Payments for these amounts were made in the previous year (no effect on 2020 Statement of Cash Flows).
(10) Collection efforts were discontinued on bills totaling $3,500. The unpaid receivables were written off.
(11) An analysis of customer receivable balances indicated the Estimated Uncollectible Accounts needed to be increased by $6,500.
(12) Payment of accounts payable amounted to $332,000. 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 $267,000.

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.