Enterprise Fund Entries and Statements Augusta has a municipal water and gas utility district (MUD). 1 answer below »

Enterprise Fund Entries and Statements

Augusta has a municipal water and gas utility district (MUD). The trial balance on January 1,

20X1, foll o ws:

Debit

C r edit

Cash

$ 92,000

Accounts Receivable

25,000

Inventory of Supplies

8,000

Land

120,000

Plant & Equipment

480,000

Accumulated Depreciation

$ 80,000

Vouchers Payable

15,000

Bonds Payable, 6%

500,000

Net Assets:

Invested in Capital Assets, Net of Related Debt

20,000

Unrestricted

110,000

Total

$725,000

$725,000

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 contrac- tor 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; depre- ciation 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 assets for the fund for December 31, 20X1.

c . Prepare a statement of revenues, expenses, and changes in fund net assets 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.

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