Question

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year: Credits $ Debits 337,000 204,200 $ 30,700 122,800 255,000 7,007,000 Cash Customer accounts receivable Allowance for uncollectible accounts Materials and supplies Restricted assets (cash) Utility plant in service Accumulated depreciation-utility plant Construction work in progress Accounts payable Accrued expenses payable Revenue bonds payable Net position Totals 2,607,000 107,000 128,400 80, 300 3,507,000 1,679,600 $8,033,000 $8,033,000 During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund: 1. Accrued expenses at July 1 were paid in cash. 2. Billings to nongovernmental customers for water usage for the year amounted to $1,386,000; billings to the General Fund amounted to $112,000. 3. Liabilities for the following were recorded during the year:

Answer 1

Sage inc. Journal Enteries Trans. Particulars 1 Accrued Expenses a/c To Cash Dr. Debit in $ Credit in $ 80300 80300 Customer Accounts Receivable a/c Dr. Due from Other Funds a/c Dr. To Operating Revenues - Charges for sales and services 1386000 112000 1498000 3 Dr. Materials and Supplies a/c Operating Expenses - Cost of Sales and Services a/c Dr. Operating Expenses - Administration a/c Dr. Construction Work in Progress a/c Dr. To Accounts Payable 192000 366000 206000 225000 989000 4 282000 Operating Expenses - Cost of Sales and Services a/c Dr. To Materials and Supplies 282000 5 Dr. 14400 Allowance for Uncollectible accounts To Customer Accounts Receivable 14400 6 1553200 Cash a/c To Customer Accounts Receivable To Due from Other Funds 1503600 49600 7 1060600 Accounts Payable a/c To Cash 1060600 179400 Non Operating Expense - Interest a/c To Cash 179400 9 255000 Utility Plant in Service a/c To Construction Work in Progress 255000 10 265100 Operating Expense - Depreciation a/c Dr. To Accum. Depreciation of Utility Plant 265100 11 25500 Construction Work in Progress a/c Dr. To Non Operating Expenses - Interest 25500 12 Dr. 10000 Operating Revenues - Charges for sales and services a/c To Allowance fro Uncollectible accounts 10000 13 Dr. 107000 Restricted Assets a/c To Cash 107000 14 95000 Operating Expenses - Cost of Sales and Services a/c Dr. To Accrued Expenses 95000 15 1488000 Operating Revenues - Charges for sales and services a/c Dr. To Operating Expenses - Cost of Sales and Services To Operating Expenses - Administration To Operating Expenses - Depreciation To Non Operating Expenses - Interest To Net Assets 743000 206000 265100 153900 120000

Statement of Revenues and changes in Net Fund Assets For the Year ended in 30.6.2017 Operating Revenue: Charges for Sales and Services 1488000 Operating Expenses: Cost of Sales and Services Administration Depreciation Total Operating Expenses 743000 206000 265100 1214100 273900 Operating Income Non Operating Revenue (Expenses) Interest on Long Term Debt 153900 Change in Net Assets Net Assets 1.7.2016 Net Assets 30.6.2017 120000 1679600 1799600