The City of Clifton provides electric energy for its citizens through an operating department. All transactions of the Electric Department are recorded in a self-sustaining fund supported by revenues from the sales of energy. Plant expansion is financed by the issuance of bonds that are repaid out of revenues. All cash of the Electric Department is held by the city treasurer. Receipts from customers and others are deposited in the treasurers account. Disbursements are made by drawing warrants on the treasurer.The following is the postclosing trial balance of the department as of June 30, 20X7:

Cash and Investments with City Treasurer. . . . . . . . . $2,250,000

Due from Customers. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,120,000

Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . 130,000

Construction in Progress. . . . . . . . . . . . . . . . . . . . . . . . 500,000

Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000

Electric Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000

Accumulated DepreciationElectric Plant. . . . . . . . $10,000,000

Accounts Payable and Accrued Operating Liabilities. . 3,270,000

5% Electric Revenue Bonds Payable . . . . . . . . . . . . . 20,000,000

Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,730,000

$60,000,000. $60,000,000

The plant is being depreciated on the basis of a 50-year composite life.During the year ended June 30, 20X8, the department had the following transactions:

1.Sales of electric energy on account, $10,700,000.

2.Purchases of fuel and operating supplies on account, $2,950,000.

3.Construction expenditures relating to miscellaneous system improvements in progress(financed from operations), $750,000 to be paid later.

4.Fuel consumed, $2,790,000.

5.Miscellaneous plant additions and improvements completed and placed in service at midyear,$1,000,000.

6.Wages and salaries paid, $4,280,000.

7.Sale at par on December 31, 20X7, of $5,000,000, 20-year, 5% Electric Revenue Bonds, datedJanuary 1, 20X8, with interest payable semiannually.

8.Expenditures out of bond proceeds for construction of Clifton Steam Plant Unit No. 1,$2,800,000.

9.Operating materials and supplies consumed, $150,000.

10.Payments received from customers, $10,500,000.

11.Expenditures out of bond proceeds for construction of Clifton Steam Plant Unit No. 2,$2,200,000.

12.Warrants drawn on city treasurer in settlement of accounts payable, $3,045,000, which includes item #3 above.

13.Both units of the Clifton Steam Plant were placed in service June 30, 20X8.

14.Interest on bonds paid during the year, $500,000.Required

a.Prepare a worksheet for the Electric Department Fund showing:

1.The Statement of Net Position amounts at June 30, 20X7.

2.The transactions for the year and closing entries. (Note: Formal journal entries are notrequired and interest capitalization may be ignored, but record depreciation.)

3.The Statement of Net Position amounts at June 30, 20X8.

b.Compute the correct June 30, 20X7, and June 30, 20X8, balances for each component of net position

.c.Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position for theElectric Department Fund for the fiscal year ended June 30, 20X8.

d.Prepare a Statement of Cash Flows for the Electric Department Fund for the year ended June 30, 20X8