Question

$ 1,775,142 | 306,870 499,600 29, 288 81,936 2,692,836 9,194 CITY OF BAY LAKE Water Utility Fund Statement of Fund Net Position June 30, 2019 Assets Current assets: Cash and investments Accounts receivable (net of $13,367 provision for uncollectible accounts) Accrued utility revenue Due from General Fund Interest receivable Total current assets Restricted assets: Cash Capital assets: Land Buildings (net of $3,420,381 in accumulated depreciation) Machinery and equipment (net of $5,130,505 in accumulated depreciation) Total capital assets (net) Total Assets Liabilities Current liabilities: Accounts payable Interest payable Current portion of long-term debt Total current liabilities Liabilities payable from restricted assets: Customer deposits Long-term liabilities: Revenue bond payable Total Liabilities Net Position Net investment in capital assets Unrestricted $1,781,141 5,214,991 8,489,354 15,485,486 | 18,187,516 532,087 131, 782 397,000 1,060,869 9,194 11,513,000 12,583,063 3,613,290 1,991,163 $ 5,604, 453

Answer 1

13(a) Credit Trn. 1 Debit $499,600 General Journal Water sales Accrued utility revenue (To reverse the Accrued utility revenue account) $499.600 $2.834.888 $197,077 Accounts Receivable ($3031965-$197077) Due from General Fund Water Sales (To record billing to customers for water use) $3,031,965 $264,307 Cash Interest Income ($264307-$83358) Accrued Interest Receivable (To record interest on investment) $180,949 $83,358 Management and Administration expenses Management and Distribution expenses Plant Treatment expense Accounts payable $366.374 $700,509 $706,747 $1,773,630

$2,471 Cash Restricted Customer Deposit (To record cash deposit from customers) $2,471 6 $2.996.766 Cash Accounts Receivable Due from General fund (To record cash collection from customers) $2,783,435 $213,331 7 Accounts payable Accrued Interest payable Interest Expense Current Portion of Long Term Debt Machinery and Equipment Customer Deposit Cash Cash Restricted (To record cash payment during the period) $1,489,117 $131,782 $271,311 $397,000 $579,053 $903 $2,868,263 $903 8 $470,315 Cash Contribution-Capital Grant (To record Grant received in cash) $470.315 $9.915 Accumulated Provision- Uncollectible Accounts Receivable (To record accounts written off as uncollectible) $9.915

10 $792,172 Interfund Transfer out Cash (To record utility fund transferred) $792,172 11 $594,270 $14,769 $60,812 Depreciation Expense Uncollectible accounts Interest expense Accumulated depreciation- Building Accumulated depreciation- Machinery & Equip Accumulated Provision- Uncollectible Accrued Interest payable |(To record adjusting entries for the period) $237,708 $356,562 $14.769 $60,812 $693,241 $15,695 Accrued Utility Revenue Accrued Interest Receivable Water sales Interest Income (To record adjusting entries for the period) $693,241 $15,695 12 $397,000 Revenue Bond payable Current portion Long term debt (To record the adjustment) $397,000

$3,225,606 $196,644 $470,315 13 Water sales Interest Income Contribution-Capital Grant Management and Administration expenses Management and Distribution expenses Plant Treatment expense Depreciation Expense Uncollectible accounts Interfund Transfer out Interest Expense Net Assets Unrestricted (To record closing entries) $366,374 $700,509 $706,747 $594,270 $14,769 $792,172 $332,123 $385,601 13(b) Credit Debit $381,783 General Journal Net Position-Unrestricted Net Position-net Investment in capital assets ($579053-$594270+397000) $381,783