Question: Augusta has a municipal water and gas
Augusta has a municipal water and gas utility district (MUD). The trial balance on January 1, 20X1, follows:
Additional Information for 20X1:
1. Charges to customers for water and gas were $420,000; collections were $432,000.
2. A loan of $30,000 for two years was received from the general fund.
3. The water and gas lines were extended to a new development at a cost of $75,000. The contractor was paid.
4. Supplies were acquired from central stores (internal service fund) for $12,400. Operating expenses were $328,000, and interest expense was $30,000. Payment was made for the interest and the payable to central stores, and $325,000 of the vouchers were paid.
5. Adjusting entries were as follows: estimated uncollectible accounts receivable, $6,300; depreciation expense, $32,000; and supplies expense, $15,200.
Required:
a. Prepare entries for the MUD enterprise fund for 20X1 and closing entries.
b. Prepare a statement of net position for the fund for December 31, 20X1.
c. Prepare a statement of revenues, expenses, and changes in fund net position for 20X1. Assume that the $500,000 of the 6 percent bonds is related to the net capital assets of land and of plant and equipment.
d. Prepare a statement of cash flows for 20X1.
Transcribed Image Text:
Debit Credit Cash Accounts Receivable Inventory of Supplies Land Plant & Equipment Accumulated Depreciation Vouchers Payable Bonds Payable, 6% $ 92,000 25,000 8,000 120,000 480,000 $ 80,000 15,000 500,000 Net Position: Invested in Capital Assets, Net of Related Debt Unrestricted 20,000 110,000 $725,000 Total $725,000
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