ENTERPRISE FUND JOURNAL ENTRIES AND FINANCIAL STATEMENTS In the Assignment 3 -- TEMPLATE (provided as an attachment to the dropbox), you are provided with the statement of net position for the City of Bay Lake Water Utility Fund as of June 30, 2016. Required A. For fiscal year 2017, prepare journal entries in the General Journal for the Water Utility Fund using the following information. a. The amount in the Accrued Utility Revenue account was reversed. b. Total billings to customers for water usage during fiscal year 2017 totaled $2,982,557 out of which $193,866 was billed to the General Fund. c. Cash in the amount of $260,000 was received for interest earned on investments and $82,000 in accrued interest. d. Expenses accrued for the period were: management and administration, $360,408, maintenance and distribution, $689,103, and treatment plant, $695,237 e. Cash receipts for customer deposits totaled $2,427. Cash received from customer deposits is considered a restricted asset. f. Cash collections on customer accounts totaled $2.943.401. of which $209,531 was from the General Fund. 9. Cash payments for the period were as follows: Accounts Payable, $1,462,596; interest (which includes the interest payable of 131,772), $395,917, bond principal, $400,000; machinery and equipment, $583,425; and return of customer deposits, $912. h. A state grant amounting to $475,000 was received as capital grant to help pay for new water treatment equipment. I. Accounts written off as uncollectible totaled $10,013. 1. The utility fund transferred $800,000 in excess operating income to the General Fund. k. Adjusting entries for the period were recorded as follows: depreciation on buildings was $240,053 and on machinery and equipment was $360,079, the allowance for uncollectible accounts was increased by $14,913, an accrual for unbilled customer receivables was made for $700,000; accrued interest income was $15,849, and accrued interest expense was $61,406. 1. The Revenue Bond Payable account was adjusted by $400,000 to record the current portion of the bond. m. Closing entries and necessary adjustments were made to the net position accounts. B. Prepare a statement of revenues, expenses, and changes in fund net position for the Water Utility Fund for the year ended June 30, 2017 C. Prepare a statement of net position for the Water Utility Fund as of June 30, 2017 D. Prepare a statement of cash flows for the Water Utility Fund as of June 30, 2017 OTY OF RAY LAKE Water Utty Fund Statement of Fund NetPosition June 30, 2016 1,775,019 320,236 (13,367) 306,869 500,000 29,311 82,000 2,693,199 Assets Current assets: Cash and investments Accounts receivable net Accounts receivable Provision for uncollectible accounts Total net accounts receivable Accued utility reverne Due from General Fund Interest receivable Total arrent assets Restricted assets: Cash Capital assets: Land Building Building 8,634, 407 Accumulated depreciation - building (3,420,000) Total net bulding Machinery and equipment Machinery and equipment 13,618,323 Accumulated depreciation - machinery and equipment (5,129,928) Total net machinery and equipment Total capital assets (net) Total Assets 9,193 1,780,945 5,214,407 8,488,395 15,483,747 18,186,139 532,047 131,772 400,CED Liaties Current liabilities: Accounts payable Interest payable Current portion of long-term debt Total aurrent liabilities Liabilities payable from restricted assets: Customer deposits Long-term liabilities: Reverwe bond payable Total Liabilities 1,063,819 9,193 11,600,000 12,63,0112 Net Position Net investment in capital assets Urrestricted Total Net Position 3,483,747 2,629,390 5,513,127 OTY OF RAY LAKE Water uity Fund Statement of Cash Flows lune 30, 2017 Cash flows froin operating activities: Cash received from austomers Cash paid to employees and suppliers Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Transfer to General Fund Customer deposits Net cash provided (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 Net cash provided (used) by capital and related financing activities Cash flows from imesting activities: Interest received on investments Net increase in cash and cash equivalents Cash and cash equivalents, July 31, 2016 Cash and cash equivalents, June 30, 2017 Recondation of Cash and Cash Equivalents to the Balance Sheet Ending Beginning Cash and cash equivalents in arrent and accrued assets Restricted cash and cash equivalents Recondituation of Operating Income to Net Cash Provided by Operations Operating income Adjustments Depreciation expense Uncollectible accounts Decrease increase) in accounts receivable Decrease increase in acowed utility reverne Decrease increase in due from general fund Increase (decrease) in accounts payable Total net adjustments Net cash provided by operating activities