Enterprise Fund Journal Entries and Financial Statements. Following is the June 30, 2010, statement of net assets for the City of Bay Lake Water Utility Fund.
Current assets: Cash and investments Accounts receivable (net of $13,367 provision for uncollectible accounts) Accrued utility revenue Due from General Fund Accrued interest receivable $ 1,775,019 306,869 500,000 29,311 82,000
Total current assets Restricted assets: Cash Capital assets: Land Buildings (net of $3,420,000 in accumulated depreciation) Machinery and equipment (net of $5,129,928 in accumulated depreciation) $1,780,945 5,214,407 8,488,395 2,693,199 9,193 Total capital assets (net) 15,483,747 Total Assets 18,186,139
Current liabilities: Accounts payable Accrued interest payable Current portion of long-term debt 532,047 131,772 400,000
Total current liabilities Liabilities payable from restricted assets: Customer deposits
Long-term liabilities: Revenue bond payable 1,063,819 9,193 11,600,000 Total Liabilities 12,673,012 Invested in capital assets, net of related debt Unrestricted 3,483,747 2,029,380 $ 5,513,127
Required
a. For fiscal year 2011, prepare general journal entries for the Water Utility Fund using the following information.
(1) The amount in the Accrued Utility Revenue account was reversed.
(2) Billings to customers for water usage during fiscal year 2011 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 accrued 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 it 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 asset accounts.
b. Prepare a statement of revenues, expenses, and changes in fund net assets for the Water Utility Fund for the year ended June 30, 2011.
c. Prepare a statement of net assets for the Water Utility Fund as of June 30, 2011.
d. Prepare a statement of cash flows for the Water Utility Fund as of June 30, 2011.