Question: Leisure City has an Electric Utility Enterprise Fund EUEF that

Leisure City has an Electric Utility Enterprise Fund (EUEF) that provides electric power to its residents and to city agencies. Following is the EUEF opening trial balance at January 1, 2013 (all amounts are in thousands of dollars):

The EUEF had the following transactions during 2013 (amounts in thousands of dollars):
1. EUEF billed residents of Leisure City $ 4,000 for electric power.
2. EUEF collected $ 4,500 of its accounts receivable.
3. EUEF established a $ 40 allowance for uncollectible accounts.
4. EUEF billed Leisure City’s General Fund $ 200 for electric power provided to city departments.
5. EUEF collected the entire amount billed to the city’s General Fund.
6. EUEF paid $ 1,300 in salaries to its employees and $ 400 in other operating expenses.
7. The outstanding serial bonds of $ 26,000 are being paid at the rate of $ 2,000 every year, starting October 1, 2013, with interest of 4 percent per annum on the outstanding debt. (The $ 260 interest payable shown in the trial balance had been accrued on December 31, 2012.) EUEF paid the debt service due on October 1, 2013.
8. The short- term investments shown in the trial balance matured. EUEF received $ 1,050, which included investment income of $ 50.
9. At year- end, EUEF accrued interest on its outstanding debt.
10. At year- end, EUEF recorded $ 1,600 depreciation on its capital assets.
11. At year- end, EUEF made an adjusting entry to report the current portion of its serial bonds payable as a current liability.
Use the preceding information to do the following:
a. Prepare the journal entries necessary to record these transactions in the EUEF.
b. Prepare a statement of revenues, expenses, and changes in net position.
c. Prepare a statement of net position for theEUEF.

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  • CreatedDecember 30, 2014
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