The Stores and Service Fund of the City of Monroe is responsible for purchasing office supplies for the Water and Sewer Department as well as departments within the General Fund. Office supplies are ordered in bulk, to take advantage of favorable pricing. Office supplies are then issued $($sold$)$ to departments at a markup intended to assure the Stores and Services Fund approximately breaks even. The fund had the following account balances as of January $1,2024$:

Debits Credits

Cash $$34,500$

Due from Other Funds $27,000$

Inventory of supplies $25,000$

Land $18,000$

Buildings $80,000$

Accumulated Depreciation$$Buildings $$41,500$

Equipment $46,000$

Accumulated Depreciation$$Equipment $30,000$

Accounts Payable $21,000$

Advance from Water Utility Fund $30,000$

Net Position $108,000$

Totals $$230,500$ $$230,500$

Required:

Record the following transactions.

In preparing for the FY $2024,$ the government desires the Stores and Services Fund revenues to approximately equal expenses. It was estimated that the price charged other departments for supplies should be $1\mathrm{.}25\%$ of cost to achieve the desired breakeven for the year.

The amount due from other funds as of January $1,2024,$ was collected in full.

During the year, supplies were ordered and received in the amount of $$312,000.$ This amount was posted to accounts payable.

$$15,000$ of the advance from the Water Utility Fund, $($originally provided for equipment$),$ was repaid. No interest is charged.

During the year, supplies with a cost of $$250,560$ were issued $($sold$)$ to the General Fund, and supplies costing $$46,400$ were issued to the Water Utility Fund. These funds were invoiced based on the previously determined markup $($$$313,200$ to General Fund and $$58,000$ to the Water Utility Fund$)$

Note: The Stores and Services Fund reports expenses within $3$ categories;

Cost of sales and services

Administration

Depreciation

Operating expenses, exclusive of depreciation, were recorded in accounts payable as follows: Cost of Sales and Services $$45,500$ and Administration, $$18,500.$

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.$

Accounts payable were paid in the amount of $$367,000.$

Depreciation in the amount of $$4,300$ was recorded for buildings and $$5,800$ for equipment.

Post the entries to the Stores and Service Fund ledger $($t$-$accounts$).$

Prepare an entry closing all nominal accounts to Net position. Compute the balance in the net position accounts, assuming there are no Restricted Net position.

$6$C$.$ Part $2.$ Enterprise Fund Transactions

The City of Monroe maintains a Water and Sewer Fund to provide utility services to its citizens. As of January $1,2024,$ the City of Monroe Water and Sewer Fund had the following account balances:

Debits Credits

Cash $$85,000$

Customer Accounts Receivable $79,000$

Estimated Uncollectible Accounts $$4,500$

Materials and Supplies $36,000$

Advance to Stores and Services Fund $30,000$

Restricted Assets $131,000$

Water Treatment Plant in Service $4,200,000$

Construction Work in Progress $189,000$

Accumulated Depreciation$$Utility Plant $1,200,000$

Accounts Payable $52,000$

Revenue$$Bonds Payable $2,500,000$

Net position $993,500$

Totals $$4,750,000$ $$4,750,000$

Required:

Open a general journal for the City of Monroe Water and Sewer Utility Fund and record the following transactions.

During the year, sales of water to non$-$government customers amounted to $$1,150,000$ and sales of water to the General Fund amounted to $$37,000.$

Collections from non$-$government customers amounted to $$1,008,000.$

The Stores and Services Fund repaid $$15,000$ of the long$-$term advance to the Water and Sewer Fund.

Materials and supplies in the amount of $$265,000$ were received. A liability in that amount was recorded.

Materials and supplies were issued and were charged to the following accounts: cost of sales and services, $$207,000$; selling, $$15,000$; administration, $$18,000.$

Note: The Water and Sewer Fund reports expenses within $4$ categories;

Cost of sales and services

Selling

Administration

Depreciation

Payroll costs for the year totaled $$401,100($this includes the employer$$s share of payroll taxes$).$ Of that amount, $$302,600$ was paid in cash, and the remainder represent payroll taxes payable. The $$401,100$ was attributable: cost of sales and services, $$265,800$; sales, $$43,900$; administration, $$91,400.$

Bond interest $(6(1)/(2)\%)$ in the amount of $$162,500$ was paid.

By terms of the revenue bond indenture, $$25,000$ cash was transferred from operating cash to restricted assets.

Construction projects at the water treatment plant $($reflected in the beginning balance of construction in process$)$ were completed in the amount of $$162,000,$ and the assets were placed in service. Payments for these amounts were made in the previous year $($no effect on $2024$ Statement of Cash Flows$).$

Collection efforts were discontinued on bi