Required information Exercise 7-25 (Algo) Enterprise Fund Journal Entries and Financial Statements [LO 7-5] [The following information applies to the questions displayed below.] Following is the June 30, 2022, statement of net position for the City of Bay Lake Water Utility Fund. CITY OF BAY LAKE Water Utility Fund Statement of Fund Net Position June 30, 2022 Assets Current assets: Cash and investments Accounts receivable (net of $13,378 provision for uncollectible accounts) Accrued utility revenue Due from General Fund Interest receivable Total current assets Restricted assets: Cash Capital assets: Land Buildings (net of $3,422,984 in accumulated depreciation) Machinery and equipment (net of $5,134,408 in accumulated depreciation) Total capital assets (net) Total Assets Liabilities Current liabilities: Accounts payable Interest payable Current portion of long-term debt Total current liabilities Liabilities payable from restricted assets: Customer deposits Long-term liabilities: Revenue bond payable Total Liabilities Net Position Net investment in capital assets Unrestricted $ 1,776,616 307,122 500,100 29,317 82,017 2,695,172 9,201 $1,782,497 5,218,959 8,495,811 15,497,267 18,201,640 532,500 131,885 410,000 1,074,385 9,201 11,890,000 12,973,586 3,175,094 2,052,960 $ 5,228,054 Following is the information of the Water Utility Fund for fiscal year 2023. 1. The amount in the Accrued Utility Revenue account was reversed. 2. Billings to customers for water usage during fiscal year 2023 totaled $2,828,336; $183,842 of the total was billed to the General Fund. 3. Cash in the amount of $246,557 was received. The cash was for interest earned on investments and $77,761 in accrued interest. 4. Expenses accrued for the period were management and administration, $341,774; maintenance and distribution, $653,474; and treatment plant, $659,294. 5. Cash receipts for customer deposits totaled $2,305. 6. Cash collections on customer accounts totaled $2,795,445, of which $198,999 was from the General Fund. 7. Cash payments for the period were as follows: Accounts Payable, $1,389,076; interest (which includes the interest payable), $376,013; bond principal, $410,000; machinery and equipment, $598,015; and return of customer deposits, $932. 8. A state grant amounting to $485,420 was received to help pay for new water treatment equipment. 9. Accounts written off as uncollectible totaled $10,233. 10. The utility fund transferred $817,580 in excess operating income to the General Fund. 11. Adjusting entries for the period were recorded as follows: depreciation on buildings was $245,333 and on machinery and equipment was $367,999; the allowance for uncollectible accounts was increased by $15,243; an accrual for unbilled customer receivables was made for $715,490; accrued interest income was $16,199; and accrued interest expense was $62,766. 12. The Revenue Bond Payable account was adjusted by $410,000 to record the current portion of the bond. 13. Closing entries and necessary adjustments were made to the net position accounts. c. Prepare a statement of net position for the Water Utility Fund as of June 30, 2023. Current Assets: Cash and Investments Accounts Receivable Accrued Utility Revenue Due from General Fund Interest Receivable Assets Total Current Assets Restricted Assets: Cash Capital Assets: Land Buildings Machinery and Equipment Total Capital Assets Total Assets Current Liabilities: CITY OF BAY LAKE Water Utility Fund Statement of Net Position June 30, 2023 Liabilities Accounts Payable Interest Payable Current Portion of Long-Term Debt 410,000 Total Current Liabilities Liabilities Payable from Restricted Assets: Customer Deposits Long-Term Liabilities: Revenue Bond Payable Total Liabilities S 0 $ 0 410,000 S 410,000 Net Position Net Investment In Capital Assets Unrestricted Total Net Position $ 0 Exercise 7-25 (Algo) Part b b. Prepare a statement of revenues, expenses, and changes in fund net position for the Water Utility Fund for the year ended June 30, 2023. (Deductions should be indicated by a minus sign.) CITY OF BAY LAKE Water Utility Fund Statement of Revenue, Expenses, and Changes in Fund Net Position Operating Income: For The Year Ended June 30, 2023 Sales of Water Operating Expenses: Management and Administration Maintenance and Distribution Treatment Plant Depreciation Total Operating Expenses Operating Income Nonoperating Revenue/Expenses: Interest Income $ 341,774 653,474 659,294 613,332 $ 3,012,993 2,267,874 745,119 184,995 Interest Expense (306,894) Total Nonoperating Revenue/Expenses (121,899) Income Before Transfers and Contributions 616,060 Interfund Transfers Out Capital Contributions Change in Net Position Net Position, July 1, 2022 Net Position, June 30, 2023 (817,580) 485,420 283,900 5,228,054 $ 5,511,954