Use the provided information to complete the steps in the box below.

City's Water and Sewer Enterprise Fund is used to account for the city's Water and Sewer Department. This department serves city residents and also provides services to the city's own departments and agencies. City policy is that the charges for water and sewer services should be set at rates sufficient to recover the full cost of providing the services.

Beginning 2017 Trial Balance

The January 1, 2017, trial balance for the Water and Sewer Enterprise Fund of City is presented here:

City Water and Sewer Enterprise Fund
Trial Balance
1-Jan-17
	Debit	Credit
Cash	180,000
Accounts Receivable	40,000
Allowance for Uncollectible Accounts		1,200
Inventory of Materials and Supplies	25,000
Customer Deposits - Cash	25,000
Land	22,000
Buildings	1,215,000
Accumulated Depreciation - Buildings		315,000
Furniture and Equipment	2,250,000
Accumulated Depreciation - Furniture and Equipment		1,250,000
Water and Sewer Lines	4,600,000
Accumulated Depreciation - Water and Sewer		3,350,000
Vouchers Payable		70,000
Accrued Interest Payable		600
Customer Deposits Payable		35,000
Bonds Payable		850,000
Long-term Claims and Judgement Payable		30,000
Net Position		2,455,200
Totals	8,357,000	8,357,000

Transactions and Events-2017

1. Water sales for 2017 totaled $630,000 and sewer charges amounted to $220,000; $5,160 of receivables for water sales and $3,015 of receivables for sewer sales are expected to prove uncollectible. The charges included $22,000 billed to the General Fund.
2. The department collected $825,000 of accounts receivable during the year.
3. The department wrote off accounts receivable totaling $6,500 during the year.
4. New deposits of $4,000 were collected from new customers during the year.
5. Payroll of $200,000 was paid, and an additional $14,000 was contributed to the statewide defined contribution retirement plan.
6. The department purchased investments for $125,000.
7. The Water and Sewer Department was billed $30,000 by the Central Communications Network Internal Services Fund for services used; $27,000 was paid at this time.
8. Investment income of $9,000 was received during the year, with no accrued interest at year end, and the fair value of the investments at year end approximately equaled their cost.
9. The department purchased materials and supplies costing $91,900, and a voucher payable in that amount was approved.
10. Materials and supplies costing $88,700 were used by the Water and Sewer Department during 2017.
11. The city paid interest, $42,000 (including $600 accrued interest payable at the beginning of the year) and principal, $78,500, on the outstanding bonds of the Water and Sewer Department.
12. Vouchers payable of $80,000 were paid.
13. Depreciation for the year was:
    • On equipment$148,000
    • On buildings$38,000
    • On lines$115,000
14. Cash of $100,000 was transferred from the Water and Sewer Fund to the General Fund.
15. Salaries and wages payable of $13,000 was accrued at year end.
16. Accrued interest on the Water and Sewer Fund bonds at December 31, 2017, was $420.

Required Steps

1. Prepare a worksheet for the Water and Sewer Enterprise Fund. Enter the effects of the following transactions and events in the appropriate columns of the worksheet.
2. Enter the preclosing trial balance in the appropriate worksheet columns.
3. Enter the preclosing trial balance amounts in the closing entry (operating statement data) and postclosing trial balance (statement of net position data) columns, as appropriate.
4. Prepare the 2017 statement of revenues, expenses, and changes in fund net position for the Water and Sewer Enterprise Fund.
5. Prepare the year end 2017 statement of net position for the Water and Sewer Enterprise Fund.