Chesco Water Company is owned by County was established on January 1, 2020 to provide water service to the borough of West Chester and its surrounding townships. The Chester County government accounts for Suburban Water Company in an enterprise fund. During 2022, Suburban Water Company engaged in the following transactions: 1. It issued $5,000,000 of revenue bonds, the proceeds of which are restricted for the purchase and improvement of plant and equipment. 2. For $4,600,000, it purchased (and paid cash for) the plant and equipment of the private water company that previously served the area. 3. It received a $500,000 cash contribution from a developer for the sole purpose of subsidizing the cost of connecting new houses to existing utility lines. 4. It billed customers for $1.5 million, of which it collected $1.1 million. 5. It billed and collected $310,000 in tap connection fees from developers. The actual cost of the hookups (paid in cash) was $220,000. 6. It paid the following operating costs: Purchases of water: $900,000 Labor and contract services: $400,000 Interest: $300,000 Supplies and miscellaneous: $200,000 7. It recognized depreciation of $350,000 on its capital assets.

Account Balances beginning of the year

Unrestricted cash 3.800,000 Acc receivable 800,000

Unrestricted Net position 4,600,000

a. Prepare journal entries to record the transactions in 2022. b. Prepare the Statement of Revenues, Expenses, and Changes in Net Position for the year ending December 31, 2022. In addition, prepare the Statement of Net Position at December 31, 2022.

c. Prepare T accounts showing the calculations and also Adjusting Entries