[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					$	1,775,019
Accounts receivable (net of $13,367 provision for uncollectible accounts)						306,869
Accrued utility revenue						500,000
Due from General Fund						29,311
Interest receivable						82,000
Total current assets						2,693,199
Restricted assets:
Cash						9,193
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)						15,483,747
Total Assets						18,186,139
Liabilities
Current liabilities:
Accounts payable		532,047
Interest payable		131,772
Current portion of long-term debt		400,000
Total current liabilities						1,063,819
Liabilities payable from restricted assets:
Customer deposits						9,193
Long-term liabilities:
Revenue bond payable						11,600,000
Total Liabilities						12,673,012
Net Position
Net investment in capital assets						3,483,747
Unrestricted						2,029,380
					$	5,513,127

Following is the information of the Water Utility Fund for fiscal year 2023.

The amount in the Accrued Utility Revenue account was reversed.

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.

Cash in the amount of $260,000 was received. The cash was for interest earned on investments and $82,000 in accrued interest.

Expenses accrued for the period were management and administration, $360,408; maintenance and distribution, $689,103; and treatment plant, $695,237.

Cash receipts for customer deposits totaled $2,427.

Cash collections on customer accounts totaled $2,943,401, of which $209,531 was from the General Fund.

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.

A state grant amounting to $475,000 was received to help pay for new water treatment equipment.

Accounts written off as uncollectible totaled $10,013.

The utility fund transferred $800,000 in excess operating income to the General Fund.

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.

The Revenue Bond Payable account was adjusted by $400,000 to record the current portion of the bond.

Closing entries and necessary adjustments were made to the net position accounts.

Reconciliation of Cash and Cash Equivalents to the Balance Sheet Reconciliation of Operating Income to Net Cash Provided by Operations Operating Income Adjustments