The Town of Weston has a Water Utility Fund with the followingtrial balance as of July 1, 2016, the first day of the fiscalyear:
| Debits | Credits |
Cash | $ 333,000 | |
Customer accounts receivable | 201,800 | |
Allowance for uncollectible accounts | | $ 30,300 |
Materials and supplies | 121,200 | |
Restricted assets (cash) | 253,000 | |
Utility plant in service | 7,004,000 | |
Accumulated depreciation-utility plant | | 2,603,000 |
Construction work in progress | 103,000 | |
Accounts payable | | 123,600 |
Accrued expenses payable | | 77,300 |
Revenue bonds payable | | 3,503,000 |
Net position | | 1,678,800 |
Total | $8,016,000 | $8,016,000 |
During the year ended June 30, 2017, the following transactionsand 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 theyear amounted to $1,383,000; billings to the General Fund amountedto $110,000.
- Liabilities for the following were recorded during theyear:
Materials and supplies | $ 189,000 |
Costs of sales and services | 363,000 |
Administrative expenses | 204,000 |
Construction work in progress | 222,000 |
- Materials and supplies were used in the amount of $278,000 allfor costs of sale and services.
- $14,200 of old accounts receivable were written off.
- Accounts receivable collections totaled $1,482,800 fromnongovernmental customers and $49,000 from the General Fund.
- $1,047,800 of accounts payable were paid in cash.
- One year’s interest in the amount of $177,200 was paid.
- Construction was completed on plant assets costing $253,000;that amount was transferred to Utility Plant in Service.
- Depreciation was recorded in the amount of $263,100.
- Interest in the amount of $25,300 was reclassified toConstruction Work in Progress. (This was previously paid in item8).
- The Allowance for Uncollectible Accounts was increased by$10,000.
- As required by the loan agreement, cash in the amount of$103,000 was transferred to Restricted Assets for eventualredemption of the bonds.
- Accrued expenses, all related to costs of sales and services,amounted to $92,000.
- Nominal accounts for the year were closed.
Required:
- Record the transactions for the year in general journalform.
- Prepare a Statement of Revenues, Expenses, and Changes in FundNet Position.
- Prepare a Statement of Net Position as of June 30, 2017.
- 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 item3) was paid in entry 7. Include restricted assets as cash and cashequivalents.
