(Solution) - Following is the June 30 2017 statement of net position -(2025 Original AI-Free Solution)
Paper Details
Following is the June 30, 2017, statement of net position for the City of Bay Lake Water Utility Fund.
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(1) The amount in the Accrued Utility Revenue account was reversed.
(2) Billings to customers for water usage during fiscal year 2017 totaled $2,982,557; $193,866 of the total was billed to the General Fund.
(3) Cash in the amount of $260,000 was received. The cash was for interest earned on investments and $82,000 in accrued interest.
(4) Expenses accrued for the period were: management and administration, $360,408; maintenance and distribution, $689,103; and treatment plant, $695,237.
(5) Cash receipts for customer deposits totaled $2,427.
(6) Cash collections on customer accounts totaled $2,943,401, of which $209,531 was from the General Fund.
(7) Cash payments for the period were as follows: Accounts Payable, $1,462,596; interest (which includes the interest payable), $395,917; bond principal, $400,000; machinery and equipment, $583,425; and return of customer deposits, $912.
(8) A state grant amounting to $475,000 was received to help pay for new water treatment equipment.
(9) Accounts written off as uncollectible totaled $10,013.
(10) The utility fund transferred $800,000 in excess operating income to the General Fund.
(11) Adjusting entries for the period were recorded as follows: depreciation on buildings was $240,053 and on machinery and equipment was $360,079; the allowance for uncollectible accounts was increased by $14,913; an accrual for unbilled customer receivables was made for $700,000; accrued interest income was $15,849; and accrued interest expense was $61,406.
(12) The Revenue Bond Payable account was adjusted by $400,000 to record the current portion of the bond.
(13) Closing entries and necessary adjustments were made to the net position accounts.
b. Prepare a statement of revenues, expenses, and changes in fund net position for the Water Utility Fund for the year ended June 30, 2017.
c. Prepare a statement of net position for the Water Utility Fund as of June 30, 2017.
d. Prepare a statement of cash flows for the Water Utility Fund as of June 30, 2017.