The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2019, the first day of the fiscal year Debits Credits Cash $ 342,000 Customer accounts receivable 207,200 Allowance for uncollectible accounts $ 31,200 Materials and supplies 126,400 Restricted assets (cash) 260,000 Utility plant in service 7,017,000 Accumulated depreciationutility plant 2,617,000 Construction work in progress 112,000 Accounts payable 134,400 Accrued expenses payable 81,500 Revenue bonds payable 3,517,000 Net position 1,683,500 Totals $ 8,064,600 $ 8,064,600 During the year ended June 30, 2020, the following transactions and events occurred in the Town of Weston Water Utility Fund Accrued expenses at July 1 were paid in cash Billings to nongovernmental customers for water usage for the year amounted to $1,423,000 billings to the General Fund amounted to $118,000 Liabilities for the following were recorded during the year Materials and supplies $ 202,000 Costs of sales and services 376,000 Administrative expenses 211,000 Construction work in progress 230,000 Materials and supplies were used in the amount of $294,000, all for costs of sales and services After collection efforts were unsuccessful, $14,900 of old accounts receivable were written off Accounts receivable collections totaled $1,518,000 from nongovernmental customers and $51,100 from the General Fund $1,092,600 of accounts payable were paid in cash One years interest in the amount of $184,900 was paid Construction was completed on plant assets costing $260,000 that amount was transferred to Utility Plant in Service Depreciation was recorded in the amount of $270,100 The Allowance for Uncollectible Accounts was increased by $10,000 As required by the loan agreement, cash in the amount of $112,000 was transferred to Restricted Assets for eventual redemption of the bonds Accrued expenses, all related to costs of sales and services, amounted to $105,000 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, 2020 d Prepare a Statement of Cash Flows for the year ended June 30, 2020 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

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 15, 2024

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2019, the first day of the fiscal

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2019, the first day of the fiscal year:

	Debits		Credits
Cash	$	342,000
Customer accounts receivable		207,200
Allowance for uncollectible accounts			$	31,200
Materials and supplies		126,400
Restricted assets (cash)		260,000
Utility plant in service		7,017,000
Accumulated depreciationutility plant				2,617,000
Construction work in progress		112,000
Accounts payable				134,400
Accrued expenses payable				81,500
Revenue bonds payable				3,517,000
Net position				1,683,500
Totals	$	8,064,600	$	8,064,600

During the year ended June 30, 2020, the following transactions and events occurred in the Town of Weston Water Utility Fund:

Accrued expenses at July 1 were paid in cash.
Billings to nongovernmental customers for water usage for the year amounted to $1,423,000; billings to the General Fund amounted to $118,000.
Liabilities for the following were recorded during the year:


Materials and supplies	$	202,000
Costs of sales and services		376,000
Administrative expenses		211,000
Construction work in progress		230,000

Materials and supplies were used in the amount of $294,000, all for costs of sales and services.
After collection efforts were unsuccessful, $14,900 of old accounts receivable were written off.
Accounts receivable collections totaled $1,518,000 from nongovernmental customers and $51,100 from the General Fund.
$1,092,600 of accounts payable were paid in cash.
One years interest in the amount of $184,900 was paid.
Construction was completed on plant assets costing $260,000; that amount was transferred to Utility Plant in Service.
Depreciation was recorded in the amount of $270,100.
The Allowance for Uncollectible Accounts was increased by $10,000.
As required by the loan agreement, cash in the amount of $112,000 was transferred to Restricted Assets for eventual redemption of the bonds.
Accrued expenses, all related to costs of sales and services, amounted to $105,000.
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, 2020. d. Prepare a Statement of Cash Flows for the year ended June 30, 2020. 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.