6C. Part 3. Proprietary Fund Financial Statements

Required:

Prepare, in good form, 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).

PREVIOUS INFORMATION:

The Stores and Service Fund of the City of Monroe had the following account balances as of January 1, 2017:

	Debits	Credits
Cash	$28,000
Due from other funds	27,000
Inventory of supplies	27,500
Land	18,000
Buildings	84,000
Accumulated depreciationbuildings		$30,000
Equipment	46,000
Accumulated depreciationequipment		25,000
Accounts payable		19,000
Advance from water utility fund		30,000
Net position		126,500
Totals	$230,500	$230,500

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, 2017, the City of Monroe Water and Sewer Fund had the following account balances:

	Debits	Credits
Cash	$ 98,000
Customer Accounts Receivable	84,000
Estimated Uncollectible Accounts Receivable		$4,000
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 - Utility Plant		1,200,000
Accounts Payable		97,000
Revenue Bonds Payable		2,500,000
Net position		959,000
Totals	$4,760,000	$4,760,000

STORES AND SERVICES INTERNAL SERVICE FUND reference Account Titles Debits Credits INVENTORY OF SUPPLIES 27,500 296,960 303,500 DUE FROM OTHER FUNDS 27,000 27,000 bb 313,200 310,000 LAND 18,000 bb bb CASH 31,000 27,000 360,000 bb bb 15,000 355,700 6-C-1 1 Cash 27,000 Due from other funds 27,000 303,500 Inventory of Supplies Accounts Payable 303,500 47,300 34,040 3,200 18,000 15,000 Advance from Enterprise Fund Cash 15,000 296,960 Operating Expenses-cost of Sales and Services Inventory of Supplies BUILDINGS 84,000 EQUIPMENT 46,000 296,960 BUILDINGS 33,000 bb 11,000 bb bb EQUIPMENT 25,000 bb 4,600 Enterprise Fund Other Funds Revenues-Change of Sales and Services 58,000 313,200 371,200 84,000 44,000 46,000 29,600 Operating Expenses- Cost of Sales and Services Operating Expenses-Administrative Accounts Payable 48,500 9,200 ADVANCE FROM ENTERPRISE FUND 15,000 30,000 bb 58,000 50,000 NET POSITION (beginning) 126,500 bb ACCOUNTS PAYABLE 355,700 19,000 bb 303,500 57,700 57,700 Cash 360,000 Enterprise Other Funds 50,000 310,000 24,500 7,000 126,500 355,700 Accounts Payable Cash 355,700 15,600 Operating Expenses-Depreciation Accumulated Depreciation-Building Accumulated Depreciation-Equipment REVENUES - CHARGES FOR SALES & SERVICES 371,200 OPERATING EXPENSES COST OF SALES & SERVs 296,960 48,500 OPERATING EXPENSES ADMINISTRATION 9,200 OPERATING EXPENSES DEPRECIATION 15,600 11,000 4,600 371,200 345,460 9,200 15,600 Total Debits 602,800 602,800 Total Credits WATER AND SEWER ENTERPRISE FUND DUE FROM GENERAL FUND reference Account Titles Dets Credits CASE 98,000 976,000 15,000 CUSTOMER ACCOUNTS RECEIVABLE 84,000 976,000 1,018.000 2,890 ESTIMATED UNCOLLECTIBLE ACCNTS 4,000 bb 5,500 bb bb 351,900 162,500 397,200 50,000 25,000 6-C-2 1 Customer Accounts Receivable Due from General Fund Revenues Charges for Sales and Services 37,000 1,018,000 37,000 1,055,000 Cash 976,000 Customer Accounts Receivable 976,000 102,400 102,0 123,110 9,500 37,000 Cash 15.000 Advance to Supplies and Stores Fund 15,000 MATERIALS & SUPPLIES ADVANCE TO SUPPLIES WATER TREATMENT ACCUMULATED DEPR 1 2 3 4 5 3 7 3 3 261.00 Materials and Supplies Inventories Accounts Payable 261,000 261,000 Cost of Sales and Services 261,000 INVENTORIES 28,000 252,500 261,000 AND STORES FUND 30.000 15,000 Db bb PLANT 4,200,000 203,000 - WATER PLANT 1,200,000 DO 282,000 1 2 3 Cost of Sales and Services Selling Administration Construction Work in progress Materials and Supplies Inventories 169.500 15.000 18,000 50,000 252,500 36,500 15,000 4,403,000 1,482,000 5 3 7 3 3 Cost of Sales and Services Selling Administration Construction Work in Progress payroll taxes payable 265,00 43,900 91,400 49,300 CONSTRUCTION IN PROCESS 203,000 203,000 PAYROLL TAXES PAYABLE RESTRICTED ASSETS 117.000 ACCOUNTS PAYABLE 302.000 97.000 bb bb 450,400 25,000 261,000 450,400 351.900 95,200 351,900 50,000 49,300 17,000 Payroll Taxes Payable Cash 351,900 1 2 3 4 5 3 162,500 116,300 142,000 56,000 3,300 Non-operation Expenses Interest Cash 162,500 17.000 Construction Work in Progress Non-operating Expenses Interest 17,000 DUE TO STORES & SERVICES FUND - bb 50.000 58.000 REVENUE BONDS PAYABLE 2.500,000 bb NET POSITION (beginning 999,000 bb 3 3 3 1 2 3 REVENUES - CHARGES FOR SALES & SERVICES 1,055,000 203,000 Water Treatment Plant Construction work in progress 203,000 8,390 8,000 2,500,000 959.000 1,055,000 Administration Customer Accounts Payable Receivable Estimated Uncollectible Accounts 2,890 5,500 5 3 7 3 3 OPERATING EXPENSES COST OF SALES & SERV: 169,500 265,800 OPERATING EXPENSES SELLING 15,000 43,900 OPERATING EXPENSES DEPRECIATION 212,000 Accounts Payable Payroll Taxes Payable Cash OPERATING EXPENSES ADMINISTRATION 18,000 91.400 8,390 302,000 95,200 397,200 58,00 58,000 493,300 Cost of Sales and Services Due to Stores and Service Fund 58.900 117,790 282,000 58,000 1 2 3 4 5 5 7 3 50,000 Due to Stores and Service Fund Cash NON-OPERATING EXPENSES INTEREST 162,500 17,000 50,000 Total Debits Total Credits 6,072,800 6,072,800 282.000 Depreciation Accumulated Depreciation Water Plant 282,000 145,500 1 25,000 Restricted Assets Cash 25,000 STORES AND SERVICES INTERNAL SERVICE FUND reference Account Titles Debits Credits INVENTORY OF SUPPLIES 27,500 296,960 303,500 DUE FROM OTHER FUNDS 27,000 27,000 bb 313,200 310,000 LAND 18,000 bb bb CASH 31,000 27,000 360,000 bb bb 15,000 355,700 6-C-1 1 Cash 27,000 Due from other funds 27,000 303,500 Inventory of Supplies Accounts Payable 303,500 47,300 34,040 3,200 18,000 15,000 Advance from Enterprise Fund Cash 15,000 296,960 Operating Expenses-cost of Sales and Services Inventory of Supplies BUILDINGS 84,000 EQUIPMENT 46,000 296,960 BUILDINGS 33,000 bb 11,000 bb bb EQUIPMENT 25,000 bb 4,600 Enterprise Fund Other Funds Revenues-Change of Sales and Services 58,000 313,200 371,200 84,000 44,000 46,000 29,600 Operating Expenses- Cost of Sales and Services Operating Expenses-Administrative Accounts Payable 48,500 9,200 ADVANCE FROM ENTERPRISE FUND 15,000 30,000 bb 58,000 50,000 NET POSITION (beginning) 126,500 bb ACCOUNTS PAYABLE 355,700 19,000 bb 303,500 57,700 57,700 Cash 360,000 Enterprise Other Funds 50,000 310,000 24,500 7,000 126,500 355,700 Accounts Payable Cash 355,700 15,600 Operating Expenses-Depreciation Accumulated Depreciation-Building Accumulated Depreciation-Equipment REVENUES - CHARGES FOR SALES & SERVICES 371,200 OPERATING EXPENSES COST OF SALES & SERVs 296,960 48,500 OPERATING EXPENSES ADMINISTRATION 9,200 OPERATING EXPENSES DEPRECIATION 15,600 11,000 4,600 371,200 345,460 9,200 15,600 Total Debits 602,800 602,800 Total Credits WATER AND SEWER ENTERPRISE FUND DUE FROM GENERAL FUND reference Account Titles Dets Credits CASE 98,000 976,000 15,000 CUSTOMER ACCOUNTS RECEIVABLE 84,000 976,000 1,018.000 2,890 ESTIMATED UNCOLLECTIBLE ACCNTS 4,000 bb 5,500 bb bb 351,900 162,500 397,200 50,000 25,000 6-C-2 1 Customer Accounts Receivable Due from General Fund Revenues Charges for Sales and Services 37,000 1,018,000 37,000 1,055,000 Cash 976,000 Customer Accounts Receivable 976,000 102,400 102,0 123,110 9,500 37,000 Cash 15.000 Advance to Supplies and Stores Fund 15,000 MATERIALS & SUPPLIES ADVANCE TO SUPPLIES WATER TREATMENT ACCUMULATED DEPR 1 2 3 4 5 3 7 3 3 261.00 Materials and Supplies Inventories Accounts Payable 261,000 261,000 Cost of Sales and Services 261,000 INVENTORIES 28,000 252,500 261,000 AND STORES FUND 30.000 15,000 Db bb PLANT 4,200,000 203,000 - WATER PLANT 1,200,000 DO 282,000 1 2 3 Cost of Sales and Services Selling Administration Construction Work in progress Materials and Supplies Inventories 169.500 15.000 18,000 50,000 252,500 36,500 15,000 4,403,000 1,482,000 5 3 7 3 3 Cost of Sales and Services Selling Administration Construction Work in Progress payroll taxes payable 265,00 43,900 91,400 49,300 CONSTRUCTION IN PROCESS 203,000 203,000 PAYROLL TAXES PAYABLE RESTRICTED ASSETS 117.000 ACCOUNTS PAYABLE 302.000 97.000 bb bb 450,400 25,000 261,000 450,400 351.900 95,200 351,900 50,000 49,300 17,000 Payroll Taxes Payable Cash 351,900 1 2 3 4 5 3 162,500 116,300 142,000 56,000 3,300 Non-operation Expenses Interest Cash 162,500 17.000 Construction Work in Progress Non-operating Expenses Interest 17,000 DUE TO STORES & SERVICES FUND - bb 50.000 58.000 REVENUE BONDS PAYABLE 2.500,000 bb NET POSITION (beginning 999,000 bb 3 3 3 1 2 3 REVENUES - CHARGES FOR SALES & SERVICES 1,055,000 203,000 Water Treatment Plant Construction work in progress 203,000 8,390 8,000 2,500,000 959.000 1,055,000 Administration Customer Accounts Payable Receivable Estimated Uncollectible Accounts 2,890 5,500 5 3 7 3 3 OPERATING EXPENSES COST OF SALES & SERV: 169,500 265,800 OPERATING EXPENSES SELLING 15,000 43,900 OPERATING EXPENSES DEPRECIATION 212,000 Accounts Payable Payroll Taxes Payable Cash OPERATING EXPENSES ADMINISTRATION 18,000 91.400 8,390 302,000 95,200 397,200 58,00 58,000 493,300 Cost of Sales and Services Due to Stores and Service Fund 58.900 117,790 282,000 58,000 1 2 3 4 5 5 7 3 50,000 Due to Stores and Service Fund Cash NON-OPERATING EXPENSES INTEREST 162,500 17,000 50,000 Total Debits Total Credits 6,072,800 6,072,800 282.000 Depreciation Accumulated Depreciation Water Plant 282,000 145,500 1 25,000 Restricted Assets Cash 25,000