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 $ 335,000 Customer accounts receivable 203,000 Allowance for uncollectible accounts $ 30,500 Materials and supplies 122,000 Restricted assets (cash) 254,000 Utility plant in service 7,005,000 Accumulated depreciationutility plant 2,605,000 Construction work in progress 105,000 Accounts payable 126,000 Accrued expenses payable 78,800 Revenue bonds payable 3,505,000 Net position 1,678,700 Totals $ 8,024,000 $ 8,024,000 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 $1,385,000 billings to the General Fund amounted to $111,000 Liabilities for the following were recorded during the year Materials and supplies $ 190,000 Costs of sales and services 364,000 Administrative expenses 205,000 Construction work in progress 224,000 Materials and supplies were used in the amount of $280,000, all for costs of sales and services After collection efforts were unsuccessful, $14,300 of old accounts receivable were written off Accounts receivable collections totaled $1,493,200 from nongovernmental customers and $49,300 from the General Fund $1,054,200 of accounts payable were paid in cash One years interest in the amount of $178,300 was paid Construction was completed on plant assets costing $254,000 that amount was transferred to Utility Plant in Service Depreciation was recorded in the amount of $264,100 The Allowance for Uncollectible Accounts was increased by $10,000 As required by the loan agreement, cash in the amount of $105,000 was transferred to Restricted Assets for eventual redemption of the bonds Accrued expenses, all related to costs of sales and services, amounted to $93,000 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 18, 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	$	335,000
Customer accounts receivable		203,000
Allowance for uncollectible accounts			$	30,500
Materials and supplies		122,000
Restricted assets (cash)		254,000
Utility plant in service		7,005,000
Accumulated depreciationutility plant				2,605,000
Construction work in progress		105,000
Accounts payable				126,000
Accrued expenses payable				78,800
Revenue bonds payable				3,505,000
Net position				1,678,700
Totals	$	8,024,000	$	8,024,000

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 $1,385,000; billings to the General Fund amounted to $111,000.
Liabilities for the following were recorded during the year:


Materials and supplies	$	190,000
Costs of sales and services		364,000
Administrative expenses		205,000
Construction work in progress		224,000

Materials and supplies were used in the amount of $280,000, all for costs of sales and services.
After collection efforts were unsuccessful, $14,300 of old accounts receivable were written off.
Accounts receivable collections totaled $1,493,200 from nongovernmental customers and $49,300 from the General Fund.
$1,054,200 of accounts payable were paid in cash.
One years interest in the amount of $178,300 was paid.
Construction was completed on plant assets costing $254,000; that amount was transferred to Utility Plant in Service.
Depreciation was recorded in the amount of $264,100.
The Allowance for Uncollectible Accounts was increased by $10,000.
As required by the loan agreement, cash in the amount of $105,000 was transferred to Restricted Assets for eventual redemption of the bonds.
Accrued expenses, all related to costs of sales and services, amounted to $93,000.
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.