Exercise $7-25($Static$)$ Enterprise Fund Journal Entries and Financial Statements $[$LO $7-5]$

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Following is the June $30,2022,$ statement of net position for the City of Bay Lake Water Utility Fund.

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CITY OF BAY LAKE$$Water Utility Fund$$Statement of Fund Net Position$$June $30,2022$Assets$$Current assets:$$Cash and investments$$$$1,775,019$Accounts receivable $($net of $$13,367$ provision for uncollectible accounts$)306,869$Accrued utility revenue$500,000$Due from General Fund$29,311$Interest receivable$82,000$Total current assets$2,693,199$Restricted assets:$$Cash$9,193$Capital assets:$$Land$$1,780,945$Buildings $($net of $$3,420,000$ in accumulated depreciation$)5,214,407$Machinery and equipment $($net of $$5,129,928$ in accumulated depreciation$)8,488,395$Total capital assets $($net$)15,483,747$Total Assets$18,186,139$Liabilities$$Current liabilities:$$Accounts payable$532,047$Interest payable$131,772$Current portion of long$-$term debt$400,000$Total current liabilities$1,063,819$Liabilities payable from restricted assets:$$Customer deposits$9,193$Long$-$term liabilities:$$Revenue bond payable$11,600,000$Total Liabilities$12,673,012$Net Position$$Net investment in capital assets$3,483,747$Unrestricted$2,029,380$$$5,513,127$

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Following is the information of the Water Utility Fund for fiscal year $2023.$

The amount in the Accrued Utility Revenue account was reversed.

Billings to customers for water usage during fiscal year $2023$ totaled $$2,982,557$; $$193,866$ of the total was billed to the General Fund.

Cash in the amount of $$260,000$ was received. The cash was for interest earned on investments and $$82,000$ in accrued interest.

Expenses accrued for the period were management and administration, $$360,408$; maintenance and distribution, $$689,103$; and treatment plant, $$695,237.$

Cash receipts for customer deposits totaled $$2,427.$

Cash collections on customer accounts totaled $$2,943,401,$ of which $$209,531$ was from the General Fund.

Cash payments for the period were as follows: Accounts Payable, $$1,462,596$; interest $($which includes the interest payable$),$ $$395,917$; bond principal, $$400,000$; machinery and equipment, $$583,425$; and return of customer deposits, $$912.$

A state grant amounting to $$475,000$ was received to help pay for new water treatment equipment.

Accounts written off as uncollectible totaled $$10,013.$

The utility fund transferred $$800,000$ in excess operating income to the General Fund.

Adjusting entries for the period were recorded as follows: depreciation on buildings was $$240,053$ and on machinery and equipment was $$360,079$; the allowance for uncollectible accounts was increased by $$14,913$; an accrual for unbilled customer receivables was made for $$700,000$; accrued interest income was $$15,849$; and accrued interest expense was $$61,406.$

The Revenue Bond Payable account was adjusted by $$400,000$ to record the current portion of the bond.

Closing entries and necessary adjustments were made to the net position accounts.

Exercise $7-25($Static$)$ Part a

Required

a$-1.$ For fiscal year $2023,$ prepare general journal entries for the Water Utility Fund. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$