Exercise 6-6 (Algo) The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2019, the first day of the fiscal year. Credits Debits $ 332,800 201,200 $ 30, 200 129,800 252,00 7,882,00 Cash Customer accounts receivable Allowance for uncollectible accounts Materials and supplies Restricted assets (cash) Utility plant in service Accumulated depreciation-utility plant Construction work in progress Accounts payable Accrued expenses payable Revenue bonds payable Net position Totals 2,681,800 102,800 122,400 76,500 3,581, eee 1,678,909 $8,010, Bea $8,010,eee During the year ended June 30, 2020, the following transactions and events occurred in the Town of Weston Water Utility Fund: 1. Accrued expenses at July 1 were paid in cash. 2. Billings to nongovernmental customers for water usage for the year amounted to $1,381.000; billings to the General Fund amounted to $109.000. 3. Liabilities for the following were recorded during the year: Materials and supplies Costs of sales and services Administrative expenses Construction work in rogres $187,eee 361, Bee 282, eee 221, eee 4. Materials and supplies were used in the amount of $276.000, all for costs of sales and services. 5. After collection efforts were unsuccessful. $14.100 of old accounts receivable were written off. 6. Accounts receivable collections totaled $1.472.400 from nongovernmental customers and $48,700 from the General Fund. 7. $1,041.400 of accounts payable were paid in cash. 8. One year's interest in the amount of $176.100 was paid. 9. Construction was completed on plant assets costing $252,000: that amount was transferred to Utility Plant in Service. 10. Depreciation was recorded in the amount of $262,100. 11. The Allowance for Uncollectible Accounts was increased by $10.000. 12. As required by the loan agreement, cash in the amount of $102,000 was transferred to Restricted Assets for eventual redemption of the bonds. 13. Accrued expenses, all related to costs of sales and services, amounted to $90.000. 14. Nominal accounts for the year were closed. Required: a. Record the transactions for the year in general journal form. b. Prepare a Statement of Revenues. Expenses, and Changes in Fund Net Position. c. Prepare a Statement of Net Position as of June 30, 2020. d. Prepare a Statement of Cash Flows for the year ended June 30, 2020. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents. 1 1 78,500 Accrued Expenses Payable Cash 78,500 2 2 Customer Accounts Receivable Due From Other Funds Operating Revenues-Charges for Sales 1,272,000 109,000 1,381,000 3 3 Materials and Supplies Operating Expenses-Costs of Sales Operating Expenses-Administrative Construction Work in Progress Accounts Payable OOO OOOOO 187,000 381,000 202.000 221,000 971.000 4 4 278,000 Operating Expenses-Costs of Sales Materials and Supplies OOO 276,000 5 5 O 14,100 Allowance for Uncollectible Accounts Customer Accounts Receivable 14,100 6 6 1,472,400 Cash Due From Other Funds Customer Accounts Receivable OOO 48,700 1.423.700 7 7 1,041,400 Accounts Payable Cash OO 1.041.400 8 8 178,100 Nonoperating Expenses-Interest Cash slo 176,100 9 9 252,000 Utility Plant in Service Construction Work in Progress : 252,000 10 10 262,100 Operating ExpensesDepreciation Accumulated Depreciation OO 262,100 11 11 10,000 Operating Revenues-Charges for Sales Allowance for Uncollectible Accounts 10,000 12 12 102,000 Restricted Assets Cash 102,000 13 13 90,000 Is Accrued Expenses Payable Operating Expenses-Costs of Sales 90,000 14 14 1,381,000 Operating Revenues-Charges for Sales Operating Expenses-Costs of Sales Operating Expenses-Administrative Operating ExpensesDepreciation Nonoperating Expenses-Interest Net Position OOOOOO 261,000 202,000 262,100 176,100 479,800 Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position. (Deductions should be entered as a negative amount.) TOWN OF WESTON WATER UTILITY FUND Statement of Revenues, Expenses, and Changes in Fund Net Position For the Year Ended June 30, 2020 Revenues: Operating Revenues-Charges for Sales $ 1,381,000 X 1,381,000 Total Revenues Operating Expenses: Depreciation Expenses Administrative Expenses Costs of Sales OOO 282,100 202,000 261,000 x Total Operating Expenses 725,100 655.900 Nonoperating Income (Expenses): Interest Expense 178,100X Total Nonoperating (Expense) Change in Net Position Net Position - Beginning of Year Net Position - End of Year 178,100 832,000 0 % $ 832,000 Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Prepare a Statement of Net Position as of June 30, 2020. (Deductions should be entered as a negative amount.) TOWN OF WESTON WATER UTILITY FUND Statement of Net Position June 30, 2020 Assets Current Assets Cash $ 332.000 Customer Fees Receivable 201,200 Less: Allowance for Uncollectible accounts (30,200) Due From Other Funds 59,300 X Supplies Inventory 187,000 749.300 Total Current Assets Noncurrent Assets: Utility Plant in Service Less: Accumulated Depreciation Construction Work in Progress ololo 7.002.000 (2,601,000) X 102.000 $5.252.300 Total Assets Liabilities and Fund Equity Liabilities Current Liabilities: Accounts Payable Accrued Expenses Payable slo 122.400 $ 76,500 198,900 Total Current Liabilities Noncurrent Liabilities: Revenue Bonds Payable 3,501.000 3,699,900 Total Liabilities Net Position Net Investment in Capital Assets Restricted Unrestricted olol 1,002.000 X Total Net Position Total Liabilities and Net Position $ 1.002.000 $ 4.701.900 Prepare a Statement of Cash Flows for the year ended June 30, 2020. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents. (Deductions should be entered as a negative amount.) TOWN OF WESTON WATER UTILITY FUND Statement of Cash Flows For the Year Ended June 30, 2020 Cash Flows from Operating Activities: 0 Cash Flows from Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: 0 Cash Flows from Investing Activities: Cash and Cash Equivalents Beginning of Year Cash and Cash Equivalents End of Year $ 0 Reconciliation of Operating Income to Net Cash Provided by Operating Activities: $ 0