The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year: Credits $ Debits 337,000 204, 200 $ 30,700 122,800 255,000 7,007,000 Cash Customer accounts receivable Allowance for uncollectible accounts Materials and supplies Restricted assets (cash) Utility plant in service Accumulated depreciation-utility plant Construction work in progress Accounts payable Accrued expenses payable Revenue bonds payable Net position Totals 2,607,000 107,000 128, 400 80,300 3,507,000 1,679,600 $8,033,000 $ 8,033,000 During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund: 1. Accrued expenses at July 1 were paid in cash. 2. Billings to nongovernmental customers for water usage for the year amounted to $1,386,000; billings to the General Fund amounted to $112,000. 3. Liabilities for the following were recorded during the year: Materials and supplies Costs of sales and services Administrative expenses Construction work in progress $ 192,000 366,000 206,000 225,000 4. Materials and supplies were used in the amount of $282,000, all for costs of sales and services. 5. $14,400 of old accounts receivable were written off. 6. Accounts receivable collections totaled $1,503,600 from nongovernmental customers and $49,600 from the General Fund. 7. $1,060,600 of accounts payable were paid in cash. 8. One year's interest in the amount of $179,400 was paid. 9. Construction was completed on plant assets costing $255,000; that amount was transferred to Utility Plant in Service. 10. Depreciation was recorded in the amount of $265,100. 11. Interest in the amount of $25,500 was reclassified to Construction Work in Progress. (This was previously paid in item 8.) 12. The Allowance for Uncollectible Accounts was increased by $10,000. 13. As required by the loan agreement, cash in the amount of $107,000 was transferred to Restricted Assets for eventual redemption of the bonds. 14. Accrued expenses, all related to costs of sales and services, amounted to $95,000. 15. Nominal accounts for the year were closed. Required: a. Record the transactions for the year in general journal form. b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position. c. Prepare a Statement of Net Position as of June 30, 2017. d. Prepare a Statement of Cash Flows for the year ended June 30, 2017. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents. Operating RevenuesCharges for Sales and Services Operating ExpensesCosts of Sales and Services Operating Expenses-Administration Operating Expenses-Depreciation Nonoperating ExpensesInterest Required A Required B > TOWN OF WESTON WATER UTILITY FUND Statement of Revenues, Expenses, and Changes in Fund Net Position For the Year Ended June 30, 2017 Operating Revenues: Charges for Sales and Services Operating Expenses: Charges for Sales and Services Accrued Expenses Payable Depreciation 0 Total Operating Expenses Operating Income Nonoperating Revenues (Expenses): Interest on Long-term Debt Change in Net Position Net Position - July 1, 2016 Net Position - June 30, 2017 $ 0 Assets: Current and Accrued Assets: Cash Customer Accounts Receivable Less: Allowance for Uncollectible accounts $ 457,100 X $ 95,700 (26,100) X 69,600 0 % 31,800 X $ 558,500 35,400 X 725 7,254,000 (2,863,100) X Due From Other Funds Materials and Supplies Total Current and Accrued Assets Other Property and Investments: Restricted Assets Utility Plant: Utility Plant in Service Less: Accumulated Depreciation Utility Plant-Net Construction Work in Progress Net Utility Plant Total Assets Liabilities: Current Liabilities: Accounts Payable Accrued Expenses 4,390,900 96,200 4,487,100 $ 5,081,000 52,000 X 90,000 X 142,000 Total Current Liabilities Long-Term Debt: 142,000 3,501,000 X 3,643,000 Total Current Liabilities Long-Term Debt: Revenue Bonds Payable Total Liabilities Net Position: Unrestricted Restricted Assets Net Investment in Capital Assets Restricted 354,000 0 0 Total Net Position $ 354,000 TOWN OF WESTON WATER UTILITY FUND Statement of Cash Flows For the Year Ended June 30, 2017 Cash Flows From Operating Activities: Cash Paid to Suppliers and Employees Cash Received From Customers (1,365,900) 1,521,000 155, 100 Net Cash Provided by Operating Activities Cash Flows From Capital and Related Financing Activities: Interest Paid on Long-Term Debt Construction of Fixed Assets 176,100 (225,000) Net Cash Used for Capital and Related Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1, 2016 Cash and Cash Equivalents, June 30, 2017 (48,900) 227,100 % 584,000 811,100 $ Reconciliation of Operating Income to Net Cash Provided by Operating Activities: 288,900 X $ 262,100 Adjustments: Depreciation Expense Decrease in Customer Accounts Receivable (Net) Increase in Interfund Receivables Reconciliation of Operating Income to Net Cash Provided by Operating Activities: $ 288,900 $ 262,100 Adjustments: Depreciation Expense Decrease in Customer Accounts Receivable (Net) Increase in Interfund Receivables Decrease in Materials and Supplies Decrease in Accounts Payable Decrease in Accrued Expenses 89,000 (70,400) Total Adjustments Net Cash Provided by Operating Activities 280,700 569,600 $ The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year: Credits $ Debits 337,000 204, 200 $ 30,700 122,800 255,000 7,007,000 Cash Customer accounts receivable Allowance for uncollectible accounts Materials and supplies Restricted assets (cash) Utility plant in service Accumulated depreciation-utility plant Construction work in progress Accounts payable Accrued expenses payable Revenue bonds payable Net position Totals 2,607,000 107,000 128, 400 80,300 3,507,000 1,679,600 $8,033,000 $ 8,033,000 During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund: 1. Accrued expenses at July 1 were paid in cash. 2. Billings to nongovernmental customers for water usage for the year amounted to $1,386,000; billings to the General Fund amounted to $112,000. 3. Liabilities for the following were recorded during the year: Materials and supplies Costs of sales and services Administrative expenses Construction work in progress $ 192,000 366,000 206,000 225,000 4. Materials and supplies were used in the amount of $282,000, all for costs of sales and services. 5. $14,400 of old accounts receivable were written off. 6. Accounts receivable collections totaled $1,503,600 from nongovernmental customers and $49,600 from the General Fund. 7. $1,060,600 of accounts payable were paid in cash. 8. One year's interest in the amount of $179,400 was paid. 9. Construction was completed on plant assets costing $255,000; that amount was transferred to Utility Plant in Service. 10. Depreciation was recorded in the amount of $265,100. 11. Interest in the amount of $25,500 was reclassified to Construction Work in Progress. (This was previously paid in item 8.) 12. The Allowance for Uncollectible Accounts was increased by $10,000. 13. As required by the loan agreement, cash in the amount of $107,000 was transferred to Restricted Assets for eventual redemption of the bonds. 14. Accrued expenses, all related to costs of sales and services, amounted to $95,000. 15. Nominal accounts for the year were closed. Required: a. Record the transactions for the year in general journal form. b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position. c. Prepare a Statement of Net Position as of June 30, 2017. d. Prepare a Statement of Cash Flows for the year ended June 30, 2017. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents. Operating RevenuesCharges for Sales and Services Operating ExpensesCosts of Sales and Services Operating Expenses-Administration Operating Expenses-Depreciation Nonoperating ExpensesInterest Required A Required B > TOWN OF WESTON WATER UTILITY FUND Statement of Revenues, Expenses, and Changes in Fund Net Position For the Year Ended June 30, 2017 Operating Revenues: Charges for Sales and Services Operating Expenses: Charges for Sales and Services Accrued Expenses Payable Depreciation 0 Total Operating Expenses Operating Income Nonoperating Revenues (Expenses): Interest on Long-term Debt Change in Net Position Net Position - July 1, 2016 Net Position - June 30, 2017 $ 0 Assets: Current and Accrued Assets: Cash Customer Accounts Receivable Less: Allowance for Uncollectible accounts $ 457,100 X $ 95,700 (26,100) X 69,600 0 % 31,800 X $ 558,500 35,400 X 725 7,254,000 (2,863,100) X Due From Other Funds Materials and Supplies Total Current and Accrued Assets Other Property and Investments: Restricted Assets Utility Plant: Utility Plant in Service Less: Accumulated Depreciation Utility Plant-Net Construction Work in Progress Net Utility Plant Total Assets Liabilities: Current Liabilities: Accounts Payable Accrued Expenses 4,390,900 96,200 4,487,100 $ 5,081,000 52,000 X 90,000 X 142,000 Total Current Liabilities Long-Term Debt: 142,000 3,501,000 X 3,643,000 Total Current Liabilities Long-Term Debt: Revenue Bonds Payable Total Liabilities Net Position: Unrestricted Restricted Assets Net Investment in Capital Assets Restricted 354,000 0 0 Total Net Position $ 354,000 TOWN OF WESTON WATER UTILITY FUND Statement of Cash Flows For the Year Ended June 30, 2017 Cash Flows From Operating Activities: Cash Paid to Suppliers and Employees Cash Received From Customers (1,365,900) 1,521,000 155, 100 Net Cash Provided by Operating Activities Cash Flows From Capital and Related Financing Activities: Interest Paid on Long-Term Debt Construction of Fixed Assets 176,100 (225,000) Net Cash Used for Capital and Related Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1, 2016 Cash and Cash Equivalents, June 30, 2017 (48,900) 227,100 % 584,000 811,100 $ Reconciliation of Operating Income to Net Cash Provided by Operating Activities: 288,900 X $ 262,100 Adjustments: Depreciation Expense Decrease in Customer Accounts Receivable (Net) Increase in Interfund Receivables Reconciliation of Operating Income to Net Cash Provided by Operating Activities: $ 288,900 $ 262,100 Adjustments: Depreciation Expense Decrease in Customer Accounts Receivable (Net) Increase in Interfund Receivables Decrease in Materials and Supplies Decrease in Accounts Payable Decrease in Accrued Expenses 89,000 (70,400) Total Adjustments Net Cash Provided by Operating Activities 280,700 569,600 $