Required information Exercise 7-25 (Static) 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. $ 1,775,019 306,869 500,000 29, 311 82,000 2,693, 199 9,193 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 $13,367 provision for uncollectible accounts) Accrued utility revenue Due from General Fund Interest receivable Total current assets Restricted assets: Cash Capital assets: Land $1,780,945 Buildings (net of $3,420,000 in accumulated depreciation) 5,214,407 Machinery and equipment (net of $5,129,928 in accumulated depreciation) 8,488,395 Total capital assets (net) Total Assets Liabilities Current liabilities: Accounts payable 532,047 Interest payable 131,772 Current portion of long-term debt 400,000 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 15,483, 747 18,186,139 1,063,819 9,193 11,600,000 12,673,012 3,483, 747 2,029,380 $ 5,513, 127 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 $2,982,557; $193,866 of the total was billed to the General Fund. 3. Cash in the amount of $260,000 was received. The cash was for interest earned on investments and $82,000 in accrued interest. 4. Expenses accrued for the period were management and administration, $360,408; maintenance and distribution, $689,103; and treatment plant, $695,237. 5. Cash receipts for customer deposits totaled $2,427. 6. Cash collections on customer accounts totaled $2,943,401, of which $209,531 was from the General Fund. 7. Cash payments for the period were as follows: Accounts Payable, $1,462,596; interest (which includes the interest payable), $395,917, bond principal, $400,000; machinery and equipment, $583,425; and return of customer deposits, $912. 8. A state grant amounting to $475,000 was received to help pay for new water treatment equipment. Ironin 8. A state grant amounting to $475,000 was received to help pay for new water treatment equipment. 9. Accounts written off as uncollectible totaled $10,013. 10. The utility fund transferred $800,000 in excess operating income to the General Fund. 11. 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. 12. The Revenue Bond Payable account was adjusted by $400,000 to record the current portion of the bond. 13. Closing entries and necessary adjustments were made to the net position accounts. Exercise 7-25 (Static) 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 For The Year Ended June 30, 2023 Operating Income: Operating Expenses: Total Operating Expenses 0 0 Nonoperating Revenue/Expenses: 0 Total Nonoperating Revenue/Expenses Income Before Transfers and Contributions Interfund Transfers Out Capital Contributions Change in Net Position Net Position, July 1, 2022 Net Position, June 30, 2023 0 $ 0