The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2019, the first day of the fiscal year: During the year ended June 30, 2020, the following transactions and 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 the year amounted to $1,423,000; billings to the General Fund amounted to $118,000. Liabilities for the following were recorded during the year: Materials and supplies $ 202,000 Costs of sales and services 376,000 Administrative expenses 211,000 Construction work in progress 230,000 Materials and supplies were used in the amount of $294,000, all for costs of sales and services. After collection efforts were unsuccessful, $14,900 of old accounts receivable were written off. Accounts receivable collections totaled $1,518,000 from nongovernmental customers and $51,100 from the General Fund. $1,092,600 of accounts payable were paid in cash. One year’s interest in the amount of $184,900 was paid. Construction was completed on plant assets costing $260,000; that amount was transferred to Utility Plant in Service. Depreciation was recorded in the amount of $270,100. The Allowance for Uncollectible Accounts was increased by $10,000. As required by the loan agreement, cash in the amount of $112,000 was transferred to Restricted Assets for eventual redemption of the bonds. Accrued expenses, all related to costs of sales and services, amounted to $105,000. Nominal accounts for the year were closed. Required: a. Record the transactions for the year in general journal form.
The Town of Weston has a Water Utility Fund with the following
During the year ended June 30, 2020, the following transactions and 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 the year amounted to $1,423,000; billings to the General Fund amounted to $118,000.
Liabilities for the following were recorded during the year:
Materials and supplies $ 202,000
Costs of sales and services 376,000
Administrative expenses 211,000
Construction work in progress 230,000
Materials and supplies were used in the amount of $294,000, all for costs of sales and services.
After collection efforts were unsuccessful, $14,900 of old accounts receivable were written off.
Accounts receivable collections totaled $1,518,000 from nongovernmental customers and $51,100 from the General Fund.
$1,092,600 of accounts payable were paid in cash.
One year’s interest in the amount of $184,900 was paid.
Construction was completed on plant assets costing $260,000; that amount was transferred to Utility Plant in Service.
The Allowance for Uncollectible Accounts was increased by $10,000.
As required by the loan agreement, cash in the amount of $112,000 was transferred to Restricted Assets for eventual redemption of the bonds.
Accrued expenses, all related to costs of sales and services, amounted to $105,000.
Nominal accounts for the year were closed.
Required:
a. Record the transactions for the year in general journal form.
b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
c. Prepare a Statement of Net Position as of June 30, 2020.
d. Prepare a Statement of
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