$6$C$.$ Part $2.$ Enterprise Fund Transactions

The City of Monroe maintains a Water and Sewer Fund to provide utility services to its citizens. As of January $1,2020,$ the City of Monroe Water and Sewer Fund had the following account balances:

Debits Credits

Cash $ $102,000$

Customer Accounts Receivable $80,000$

Estimated Uncollectible Accounts Receivable $ $4,500$

Materials and Supplies $28,000$

Advance to Stores and Services Fund $30,000$

Restricted Assets $117,000$

Water Treatment Plant in Service $4,200,000$

Construction Work in Progress $203,000$

Accumulated Depreciation $-$ Water Treatment Plant $1,200,000$

Accounts Payable $96,500$

Revenue Bonds Payable $2,500,000$

Net Position $959,000$

Totals $ $4,760,000$ $ $4,760,000$

Required:

a$.$ Record the following transactions in the general journal of the City of Monroe Water and Sewer Utility Fund.

$(1)$ During the year, sales of water to non$-$government customers amounted to $$1,025,000$ and sales of water to the General Fund amounted to $$37,000.$

$(2)$ Collections from non$-$government customers amounted to $$983,000.$

$(3)$ The Stores and Services Fund repaid $$15,000$ of the long$-$term advance to the Water and Sewer Fund.

$(4)$ Materials and supplies in the amount of $$261,000$ were received. A liability in that amount was recorded.

$(5)$ Materials and supplies were issued and were charged to the following accounts: cost of sales and services, $$180,000$; selling, $$15,000$; administration, $$18,000$; construction work in progress, $$50,000.$

$(6)$ Payroll costs for the year totaled $$416,200$ plus $$34,200$ for the employer$$s share of payroll taxes. Of that amount, $$351,900$ was paid in cash, and the remainder was withheld for taxes. The $$450,400(416,200+34,200)$ was distributed as follows: cost of sales and services, $$265,800$; sales, $$43,900$; administration, $$91,400$; construction work in progress, $$49,300.$

$(7)$ Bond interest $(6(1)/(2)\%)$ in the amount of $$162,500$ was paid.

$(8)$ In accord with the revenue bond indenture, $$25,000$ cash was transferred from operating cash to restricted assets.

$(9)$ Construction projects at the water treatment plant $($reflected in the beginning balance of construction in process$)$ were completed in the amount of $$214,000,$ and the assets were placed in service. Payments for these amounts were made in the previous year $($no effect on $2020$ Statement of Cash Flows$).$

$(10)$ Collection efforts were discontinued on bills totaling $$3,500.$ The unpaid receivables were written off.

$(11)$ An analysis of customer receivable balances indicated the Estimated Uncollectible Accounts needed to be increased by $$6,500.$

$(12)$ Payment of accounts payable amounted to $$332,000.$ Payments of payroll taxes totaled $$95,200.$

$(13)$ Supplies transferred from the Stores and Services Fund amounted to $$58,000.$ Cash in the amount of $$50,000$ was paid to the Stores and Services Fund for supplies.

$(14)$ Depreciation expense for the year was computed to be $$267,000.$

b$.$ Post the entries to the Water and Sewer Fund ledger $($t$-$accounts$).$

c$.$ Prepare and post an entry closing all nominal accounts to Net Position. Compute the balance in the Net Position accounts, assuming the only restricted assets are those identified with the bond indenture and the outstanding bonds are associated with the purchase of capital assets.