Chapter 13 – Financial Statement Analysis

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Stores & Services Fund

		STORES AND SERVICES INTERNAL SERVICE FUND
											INVENTORY OF				DUE FROM
reference		Account Titles		Debits	Credits		CASH				SUPPLIES				OTHER FUNDS				LAND
						bb	28,000	15,000	4	bb	27,500	296,960	5	bb	27,000	27,000	2	bb	18,000
6-C-1	1	no entry				2	27,000	365,000	8	3	307,000			5	371,200	360,000	7
						7	360,000
	2	cash		27,000
			due from other funds		27,000
			(to record cash collected due from other funds)
	3	Inventory of suppliers		307,000			35,000				37,540				11,200				18,000
			Accounts payable		307,000
			(to record purchase of supplies)
	4	Advanced from water utility fund		15,000							ACCUMULATED DEPR'								ACCUMULATED DEPR'
			Cash		15,000		BUILDINGS				BUILDINGS				EQUIPMENT				EQUIPMENT
			(to record repayment of advance of water utility fund)			bb	84,000					30,000	bb	bb	46,000					25,000	bb
	5	Operating expenses - Cost of sales (250560+46400)		296,960								10,000	9	.						4,600	9	.
			Inventory of supplies		296,960
			(to record issue of supplies)
	5	Due from other funds (313200+58000)		371,200			84,000					40,000			46,000					29,600
			Revenue charged for sales & services		371,200
			(to record change of supplies)								ADVANCE FROM				NET POSITION
	6	Operating expense cost of sale & services (15000+16900+17500)		49,400			ACCOUNTS PAYABLE				ENTERPRISE FUND				( beginning)
		operating expense cost of administration		9,000		8	365,000	19,000	bb	4	15,000	30,000	bb			126,500	bb
			Accounts payable		58,400			307,000	3	.
			(to record operating expenses)					49,400	6	.
	7	Cash (50000+310000)		360,000						.
			Due from other funds		360,000
			(to record cash received)					10,400				15,000				126,500
	8	Accounts payable		365,000
			Cash		365,000
			(to record payment made)				REVENUES - CHARGES				OPERATING EXPENSES				OPERATING EXPENSES				OPERATING EXPENSES
	9	Operating expense costs of depreciation		14,600			FOR SALES & SERVICES				COST OF SALES & SERVs				ADMINISTRATION				DEPRECIATION
			Accumulated Dep- Buildings		10,000			371,200	5	5	296,960			6	9,000			9	14,600
			accumulated Dep- Equipment		4,600					6	49,400
			(to record depreciation expense)
								371,200			346,360				9,000				14,600
									Total Debits			601,700
									Total Credits			592,700
															-

&16City of MonroeStores & Services Internal Service Fund &16

Water & Sewer Fund

		WATER AND SEWER ENTERPRISE FUND
							CASH				CUSTOMER				ESTIMATED				DUE FROM
reference		Account Titles		Debits	Credits	bb	98,000	162,500	7		ACCOUNTS RECEIVABLE				UNCOLLECTIBLE ACCNTS				GENERAL FUND
						2	976,000	397,200	12	bb	84,000	976,000	2	10	2,890	4,000	bb	1	37,000
6-C-2	1	customer Acc receivable		1,018,000				50,000	13	1	1,018,000	2,890	10	11	5,500
		General fund		37,000				25,000	15			5,500	11
			Revenue		1,055,000			351,900	6
			(to record revenue )
	2	Cash		976,000
			customer accounts receivables		976,000		87,400				117,610					(4,390)			37,000
			(to record amount received)
	3	water and		15,000
			store and service fund		15,000		MATERIALS & SUPPLIES				ADVANCE TO SUPPLIES				WATER TREATMENT				ACCUMULATED DEPR'
			(To store and service fund)				INVENTORIES				AND STORES FUND				PLANT				- WATER PLANT
	4	Material and supplies		261,000		bb	28,000	252,500	5	bb	30,000			bb	4,200,000					1,200,000	bb
			Accs payable		261,000	4	261,000							9	203,000					286,000	14
			(to record accounts payable)			13	58,000
	5	Cost of sales and services		169,500
		operaing expenses Selling		15,000
		operating expenses Administration		18,000			94,500				30,000				4,403,000					1,486,000
		Construction work in progress		50,000
			materials and supplies		252,500		CONSTRUCTION												PAYROLL
			(to record materials issued)				IN PROCESS				RESTRICTED ASSETS				ACCOUNTS PAYABLE				TAXES PAYABLE
	6	operating expenses Administration-payroll cost		450,400		bb	203,000	203,000	9	bb	117,000			12	302,000	97,000	bb			-	bb
			Payroll tax payable		98,500	5	50,000			15	25,000					261,000	4	12	95,200	64,300	6
			cash		351,900	8	17,000
			(to record operating expenses)
		Cost of sales and services		265,800
		Selling		43,900
		Administration		91,400			67,000				142,000					56,000				(30,900)
		Construction in progress		49,300
			To payroll Cost		450,400
			(To payroll cost)				DUE TO STORES				REVENUE				NET POSITION				REVENUES - CHARGES
	7	Bond int.		162,500		RESERVE FOR ENCUMBRANCES	& SERVICES FUND				BONDS PAYABLE				( beginning)				FOR SALES & SERVICES
			cash		162,500	13	50,000	-	bb			2,500,000	bb			959,000	bb			1,018,000	1
			(to record bond interest paid)					15,000	3											37,000	1
								58,000	13
	8	Construction work in progress		17,000
			non operating expenses interest		17,000			23,000				2,500,000				959,000				1,055,000
			(to record reclassification)
	9	Water treatment plant		203,000			OPERATING EXPENSES				OPERATING EXPENSES				OPERATING EXPENSES				OPERATING EXPENSES
			construction work in progress		203,000		COST OF SALES & SERVs				SELLING				ADMINISTRATION				DEPRECIATION
			(To construction work in progress)			3	15,000			5	15,000			5	18,000			14	286,000
	10	Estimated uncollectable		2,890		5	169,500							6	416,200
			Customer acc receivable		2,890
			(to record debts unreceivable)
	11	Estimated Uncollectable Accounts Receivable		5,500			184,500				15,000				434,200				286,000
			Customer Accounts Receivable		5,500
			(To Customer Accounts Receivable)				NON- OPERATING EXPENSES
	12	Accounts payable		302,000			INTEREST
		Payroll Tax		95,200		7	162,500	17,000	8				Total Debits			6,043,710
			To cash		397,200								Total Credits			6,043,710
			(to payment of taxes and accounts payable)
	13	Supplies		58,000			145,500
			To Store and Service Fund		58,000
			(to transfer from stores to supplies)																-
		Store and Service Fund		50,000
			To cash		50,000
			(to record cash paid)
	14	Depreciation		286,000
			To Accumulated Depreciation		286,000
			(to record depreciation)
	15	Restricted assets.		25,000
			To cash		25,000
			(to record cash paid)
							37,000

&"Arial,Bold"&14City of Monroe - Water and Sewer Enterprise Fund

Closing Entries

Stores and Services Internal Service Fund Closing Entry
Account Title	Debits	Credits	NET POSITION
Operating Rev. -charges for sales & service	371,200
Operating Exp.-costs of sales & services		296,960		126,500	Preclosing
Operating Exp.-administration		9,000		1,240	closing entry
Operating Exp.-Depreciation		14,600
selling		49,400
Net position		1,240		127,740
	Net Investment in Capital Assets	Restricted	Unrestricted	Total
Net Investment in Capital Assets
Capital Assets	189,000			189,000
Less: Accumulated Depreciation	(70,600)			(70,600)
Less: Advance from Enterprise fund	(15,000)			(15,000)
Restricted		0		-
Unrestricted			-	-
	103,400	-	-	103,400
Water and Sewer Enterprise Fund Closing Entry
Account Title	Debits	Credits	NET POSITION
Operating Rev. -charges for sales & service	1,055,000
Operating Exp.-costs of sales & services		184,500		959,000	Preclosing
Operating Exp.-administration		434,200		135,300	closing entry
Operating Exp.-Depreciation		286,000
selling		15,000
Net position		135,300
				1,094,300
	Net Investment in Capital Assets	Restricted	Unrestricted	Total
Net Investment in Capital Assets
Capital Assets	4,403,000			4,403,000
Less: Accumulated Depreciation	(1,486,000)			(1,486,000)
Less: Revenue Bond Payable	(2,500,000)			(2,500,000)
Restricted		142,000		142,000
Unrestricted			-	-
	417,000	142,000	-	559,000

&14City of Monroe &14 PROPRIETARY FUNDS- Closing Entries

Stmt of revenues & expenses

	Business-Type Activities Enterprise Funds Water and Sewer	Governmental Activities Internal Service Funds
Operating Revenues
Charges for Services	$ 1,055,000	$ 371,200
Total Current Assets	1,055,000	371,200
Operating Expenses
Cost of Sales and Services	184,500	296,960
Selling	15,000	49,400
Administration	434,200	9,000
Depreciation	286,000	14,600
Total Operating Expenses	919,700	369,960
Operting Income	135,300	1,240
Nonoperating Expenses
Interest Expense	145,500	-
Change in Net Position	(10,200)	1,240
Net Position, January 1	959,000	126,500
Net Position, December 31	$ 948,800	$ 127,740

&"Times New Roman,Regular"&14City of MonroeStatement of Revenues, Expenses and Changes in Fund Net PositionProprietary-type FundsFor the year ended December 31, 2017

Stmt of net position

	Business-Type Activities Enterprise Funds Water and Sewer	Governmental Activities Internal Service Funds
Assets
Current Assets
Cash	$ 87,400	$ 35,000
Customer Accounts Receivable (Net)	117,610
Due from Other Funds	37,000	11,200
Inventories	94,500	37,540
Total Current Assets	336,510	83,740
Noncurrent Assets
Advance to Stores and Services Fund	30,000	15,000
Restricted Assets (Cash)	142,000
Capital Assets, Net of Accumulated Depreciation	2,917,000	78,400
Total Noncurrent Assets	3,089,000	93,400
Total Assets	3,425,510	177,140
Liabilities
Current Liabilities
Accounts Payable	56,000	10,400
Payroll Taxes Payable	(30,900)
Due to Internal Service Fund	37,000
Total Current Liabilities	62,100	10,400
Noncurrent Liabilities
Revenue Bonds Payable	2,500,000
Advance from Water Utility Fund	30,000
Total Noncurrent Liabilities	2,530,000	-
Total Liabilities	2,592,100	10,400
Net Position
Net Investment in Capital Assets	417,000	103,400
Restricted	142,000
Unrestricted
Total Net Position	$ 559,000	$ 103,400

&"Times New Roman,Regular"&14City of MonroeStatement of Net PositionProprietary-type FundsAs of December 31, 2017

Stmt of Cash Flows

	Business-Type Activities Enterprise Funds Water and Sewer	Governmental Activities Internal Service Funds
Cash Flows from Operating Activities
Cash Received from Customers and Departments	$ 976,000	$ 387,000
Cash Paid to Suppliers and Employees	986,600	380,000
Net Cash Provided by Operating Activities	(10,600)	7,000
Cash Flows from Capital Related Financing Activities
Acquisition of Capital Assets
Interest Paid on Long-term Debt
Partial Repayment of Advance from Enterprise Fund
Net Cash Used in Capital Related Financing Activities	-	-
Cash Flows from Investing Activities
Partial Receipt of Advance to Internal Service Fund
Net Cash Provided from Investing Activities	-	-
Net Increase (Decrease) in Cash	(10,600)	7,000
Cash and Restricted Cash, January 1	98,000	28,000
Cash and Restricted Cash, December 31	$ 87,400	$ 35,000
Reconciliation of Operating Income to Net Cash Provided by Operating Activities
Operating Income
Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Actitities
Depreciation
(Increase) Decrease in Customer Accounts Receivable
(Increase)Decrease in Interfund Receivables
(Increase) Decrease in Inventories
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Payroll Taxes Payable
Increase (Decrease) in Interfund Liabilities
Net Cash Provided by Operating Activities	$ -	$ -
Non-cash investing, capital, and financing activities:	0	0

&"Arial,Bold"City of MonroeStatement of Cash FlowsProprietary-type FundsFor the year ended December 31, 2017