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:

	Debits			Credits
Cash	$	337,000
Customer accounts receivable		204,200
Allowance for uncollectible accounts				$	30,700
Materials and supplies		122,800
Restricted assets (cash)		255,000
Utility plant in service		7,007,000
Accumulated depreciation—utility plant					2,607,000
Construction work in progress		107,000
Accounts payable					128,400
Accrued expenses payable					80,300
Revenue bonds payable					3,507,000
Net position					1,679,600
Totals	$	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:

Materials and supplies	$	192,000
Costs of sales and services		366,000
Administrative expenses		206,000
Construction work in progress		225,000

4. Materials and supplies were used in the amount of $282,000, all for costs of sales and services.
5. $14,400 of old accounts receivable were written off.
6. Accounts receivable collections totaled $1,503,600 from nongovernmental customers and $49,600 from the General Fund.
7. $1,060,600 of accounts payable were paid in cash.
8. One year’s interest in the amount of $179,400 was paid.
9. Construction was completed on plant assets costing $255,000; that amount was transferred to Utility Plant in Service.
10. Depreciation was recorded in the amount of $265,100.
11. Interest in the amount of $25,500 was reclassified to Construction Work in Progress. (This was previously paid in item 8.)
12. The Allowance for Uncollectible Accounts was increased by $10,000.
13. As required by the loan agreement, cash in the amount of $107,000 was transferred to Restricted Assets for eventual redemption of the bonds.
14. Accrued expenses, all related to costs of sales and services, amounted to $95,000.
15. Nominal accounts for the year were closed.

Prepare a Statement of Net Position as of June 30, 2017. (Deductions should be entered as a negative amount.)

TOWN OF WESTON WATER UTILITY FUND Statement of Net Position As of June 30, 2017 Assets: Current and Accrued Assets: Customer Accounts Receivable Allowance for Uncollectible Accounts 0 Total Current and Accrued Assets $0 Other Property and Investments: Utility Plant: Utility Plant-Net 0 Net Utility Plant 0 Total Assets $0 Liabilities: Current Liabilities: Total Current Liabilities 0 Long-Term Debt: Total Liabilities 0 Net Position: Total Net Position $0

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 item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents. (Deductions should be entered as a negative amount.)

	TOWN OF WESTON WATER UTILITY FUND Statement of Cash Flows For the Year Ended June 30, 2017 Cash Flows From Operating Activities: 0 Cash Flows From Capital and Related Financing Activities: 0 Cash and Cash Equivalents, July 1, 2016 Cash and Cash Equivalents, June 30, 2017 $0 Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Adjustments: Total Adjustments 0 $0

Answer 1

A Statement of Net Position as of June 30, 2017.

Assets	Debit	Credit	Balance
Current and Accrued Assets
Cash(337000-80300+(1503600+49600)-1060600-107000-179400)		462900
Customer Accounts Receivable(204200+1386000-1503600-14400)	72200
Less: allowance for uncollectable accounts(30700-14400+10000)	26300	45900
Due from general fund(112000-49600)		62400
Material & Supplies(122800+192000-282000)		32800
Total Current & Accrued Assets			604000
Other Property & Investments
Restricted Assets(255000+107000)		362000
Utility Plant
Utlity plant in service(7,007,000+255,000)	7262000
Less: Accumulated Depreciation(2607000+265000)	2872100
Utility Plant- Net(7262000-2872100)		4389900
Construction work in progress(107000+225000-255000+25500)		102500
Net Utlity plant			4854400
Total Assets			5458400
Liabilities
Current Liabilities
Accounts Payable(128400+(192000+366000+206000+225000)-1060600)		56800
Accrued Expense(80300-80300+95000)		95000
Total Current Liabilities			151800
Long term debt:
Revenues Bonds Payable			3507000
Total Liabilities
Net position
Net investment in capital assets restricted (4854400-3507000)		882900
Restricted Assets		362000
Unrestricted		554700
Total Net Position(882900+362000+554700)			1799600

Therefore Total Net Position = $ 1799600

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