Augusta has a municipal water and gas utility district (MUD). The trial balance on January 1, 20X1, follows: Cash Accounts Receivable Inventory of Supplies Land Plant and Equipment Accumulated Depreciation Vouchers Payable Bonds Payable, 6% Net Position: Invested in Capital Assets, Net of Related Debt Unrestricted Total Additional Information for 20X1: Debit $ 93,100 26,100 8,500 Credit 121,600 488,000 $ 81,000 16,500 510,000 18,600 111,200 $737,300 $737,300 1. Charges to customers for water and gas were $420,200; collections were $433,800. 2. A loan of $30,600 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 $76,700. The contractor was paid. 4. Supplies were acquired from central stores (internal service fund) for $12,800. Operating expenses were $328,200, and interest expense was $30,600. Payment was made for the interest and the payable to central stores, and $326,700 of the vouchers were paid. 5. Adjusting entries were as follows: estimated uncollectible accounts receivable, $8,100; depreciation expense, $33,900; and supplies expense, $17,000. 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 $510,000 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.
Augusta has a municipal water and gas utility district (MUD). The trial balance on January 1, 20X1, follows: Cash Accounts Receivable Inventory of Supplies Land Plant and Equipment Accumulated Depreciation Vouchers Payable Bonds Payable, 6% Net Position: Invested in Capital Assets, Net of Related Debt Unrestricted Total Additional Information for 20X1: Debit $ 93,100 26,100 8,500 Credit 121,600 488,000 $ 81,000 16,500 510,000 18,600 111,200 $737,300 $737,300 1. Charges to customers for water and gas were $420,200; collections were $433,800. 2. A loan of $30,600 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 $76,700. The contractor was paid. 4. Supplies were acquired from central stores (internal service fund) for $12,800. Operating expenses were $328,200, and interest expense was $30,600. Payment was made for the interest and the payable to central stores, and $326,700 of the vouchers were paid. 5. Adjusting entries were as follows: estimated uncollectible accounts receivable, $8,100; depreciation expense, $33,900; and supplies expense, $17,000. 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 $510,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Augusta has a municipal water and gas utility district (MUD). The trial balance on January 1, 20X1, follows:
Cash
Accounts Receivable
Inventory of Supplies
Land
Plant and Equipment
Accumulated Depreciation
Vouchers Payable
Bonds Payable, 6%
Net Position:
Invested in Capital Assets, Net of Related Debt
Unrestricted
Total
Additional Information for 20X1:
Debit
$ 93,100
26,100
8,500
Credit
121,600
488,000
$ 81,000
16,500
510,000
18,600
111,200
$737,300
$737,300
1. Charges to customers for water and gas were $420,200; collections were $433,800.
2. A loan of $30,600 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 $76,700. The contractor was paid.
4. Supplies were acquired from central stores (internal service fund) for $12,800. Operating expenses were $328,200, and interest expense was
$30,600. Payment was made for the interest and the payable to central stores, and $326,700 of the vouchers were paid.
5. Adjusting entries were as follows: estimated uncollectible accounts receivable, $8,100; depreciation expense, $33,900; and supplies expense,
$17,000.
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 $510,000 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.
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