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: Cash Customer Accounts Receivable Estimated Uncollectible Accounts Receivable Materials and Supplies Advance to stores and Services Fund Restricted Aaseta Water Treatment Plant in service Construction Work in Progress Accumulated Depreciation Water Treatment Plant Accounts Payable Revenue Bonds Payable Net Position Totale Debita $102,000 80,000 20,000 30,000 117,000 4,200,000 303,000 Credits $ 4,500 1,200,000 96,500 2,500,000 959,000 $4,760,000 $4,760,000 Cash Flows from Operating Activities: Cash Received from Customers and Departments Cash Paid to Suppliers and Employees Net Cash Provided by Operating Activities Cash Flows from Capital Related Financing Activities: Acquisition of Capital Assets Interest Paid on Long-term Debt Partial Repayment of Advance from Water Utility Fund CITY OF MONROE PROPRIETARY FUNDS Statement of Cash Flows For the Year Ended December 31, 2020 000 S Business-Type Activities Enterprise Funds Water and Sewer 983,000 $ (427,200) 00 555,800 3,035,300 (162,500) Governmental Activities Internal Service Funds Stores and Service Fund 00 07 387,000 (367,500) 0 19,500 00 00 00 D Cash Flows from Investing Activities: Partial Receipt of Advance to Stores & Services Fund Net Increase (Decrease) in Cash Cash and Restricted Cash, January 11 Cash and Restricted Cash, December 31 Reconciliation of Operating Income to Net Cash Provided by (Used in) Operating Activities Operating Income Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities (Increase) Decrease in Customer Accounts Receivable (Increase) Decrease in Interfund Receivables (Increase) Decrease in Materials and Supplies Increase (Decrease) in Accounts Payable Increase (Decrease) in Payroll Taxes Payable Increase (Decrease) in Interfund Liabilities O 000000 $ S 15,000 00 15,000 3,443,600 102,000 3,545,000 $ 0 (110,000) O (84,000) 261,000 O 3,300 00 00 0 19,500 00 19,500 00 DO 00 00 Cash and Restricted Cash, December 31 Reconciliation of Operating Income to Net Cash Provided by (Used in) Operating Activities Operating Income Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities (Increase) Decrease in Customer Accounts Receivable (Increase) Decrease in Interfund Receivables (increase) Decrease in Materials and Supplies Increase (Decrease) in Accounts Payable Increase (Decrease) in Payroll Taxes Payable Increase (Decrease) in Interfund Liabilities Net Cash Provided by Operating Activities 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 employer's 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 i 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. 10 points The Stores and Service Fund of the City of Monroe had the following account balances as of January 1, 2020: Cash Due from Other Funds Materials and Supplies Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation-Equipment Accounts Payable Advance from Water Utility Fund Net Position Totals Debits $ 32,000 27,000 27,500 18,000 80,000 46,000 Credits $ 28,000 25,000 19,000 30,000 120,500 $230,500 $230,500 Required: a. Record the following transactions in the general journal of the City of Monroe Stores and Service Fund. (1) A budget was prepared for FY 2020. It was estimated that the price charged other departments for supplies should be 1.25% of cost to achieve the desired breakeven for the year. (2) The amount due from other funds as of January 1, 2020, was collected in full. (3) During the year, supplies were ordered and received in the amount of $312,000. This amount was posted to accounts payable. 10 points Required: a. Record the following transactions in the general journal of the City of Monroe Stores and Service Fund. (1) A budget was prepared for FY 2020. It was estimated that the price charged other departments for supplies should be 1.25% of cost to achieve the desired breakeven for the year. (2) The amount due from other funds as of January 1, 2020, was collected in full.. (3) During the year, supplies were ordered and received in the amount of $312,000. This amount was posted to accounts payable. (4) $15,000 of the advance from the Water Utility Fund, originally provided for construction, was repaid. No interest is charged. (5) During the year, supplies costing $250,560 were issued to the General Fund, and supplies costing $46,400 were issued to the Water Utility Fund. These funds were charged based on the previously determined markup ($ 313,200 to General Fund and 58,000 to the Water Utility Fund). (6) Operating expenses, exclusive of depreciation, were recorded in accounts payable as follows: Purchasing, $16,200; Warehousing, $16,900; Delivery, $17,500; and Administrative, $8,000. (7) Cash was received from the General Fund in the amount of $310,000 and from the Water Utility Fund in the amount of $50,000. (8) Accounts payable were paid in the amount of $367,500. (9) Depreciation in the amount of $8,400 was recorded for buildings and $6,200 for equipment