I am completely lost on my non profit homework. Somebody help please
Government Activity – Part Three
Background Information
The following information relates to the Town of Johnsonville for the fiscal years ending 9/30/14 and 9/30/15.
Following is selected information from the Statement of Net Position prepared for the Town’s Water and Sewer Utility Fund for the year ended 9/30/14.
Cash and investments $ 1,800,000
Restricted cash and investments 1,700,000
Accounts receivable – customers 450,000
Unbilled water and sewer revenues 400,000
Accrued interest receivable 50,000
Property, plant and equipment
o Land 500,000
o Buildings 1,500,000
o Water Plant 5,000,000
o Sewer Plant 8,000,000
o Water Lines 15,000,000
o Sewer Lines 20,000,000
o Machinery and equipment 700,000
o Construction in progress – sewer plant upgrade 500,000
Accumulated depreciation 15,000,000
Accounts payable 100,000
Liabilities payable from restricted assets – customer deposits 200,000
Accrued interest payable 400,000
Accrued salaries and benefits 105,000
Bonds payable – current portion 600,000
Bonds payable – long-term portion 20,000,000
Net position
o Net investment in capital assets 17,100,000
o Restricted
Unspent bond proceeds – sewer plant upgrade 1,500,000
o Unrestricted 595,000
The following transactions occurred in the Town’s Water and Sewer Utility Fund during the fiscal year ending 9/30/15.
1. Water and sewer revenues billed to customers throughout the year $ 6,000,000
2. Salaries and benefits paid throughout the year – operations $ 1,800,000
3. Salaries and benefits paid throughout the year – general/administrative $ 400,000
4. Operating expenses paid throughout the year $ 600,000
5. General/administrative expenses paid throughout the year $ 150,000
6. Investment income received during the year – unrestricted investments $ 50,000
7. Investment income received during the year – invested customer deposits $ 10,000
8. Recorded estimated depreciation based on actual from prior year $ 1,600,000
9. Completed the sewer treatment plant upgrades in progress 9/30/14 $ 1,500,000
10. Paid interest on bonds $ 1,200,000
11. Paid principal on bonds $ 600,000
12. Information about water and sewer billings for October and
November 2015
a. Amounts billed
i. 10/1/15 for water and sewer service 8/11/15 – 9/10/15 $ 155,200
ii. 10/15/15 for water and sewer service 8/25/15 – 9/24/15 140,500
iii. 11/1/15 for water and sewer service 9/11/15 – 10/13/15 176,550
iv. 11/15/15 for water and sewer service 9/25/15 – 10/27/15 143,000
13. Additional information at 9/30/15:
a. Interest earned but not received on unrestricted
fixed income investments $ 15,000
b. Interest incurred but not paid on bonds payable 200,000
c. Accrued salaries and benefits incurred but unpaid at 9/30/15 60,000
d. Unrealized gains due to increase in fair value of
i. Unrestricted investments 25,000
ii. Restricted investments 35,000
e. Actual depreciation expense 1,700,000
14. Additional background information
a. During the current year, $5,800,000 was collected from customers for amounts billed.
b. There was no net change in the number of utility customers from 9/30/14 to 9/30/15.
c. All bonds were issued to construct or acquire property, plant, or equipment for the Water and Sewer Utility Fund.
d. The Town issued $2,000,000 in bonds in June 2014 to provide funds for sewer system upgrades estimated to cost $2,000,000.
e. All investments consist of U.S. Treasury bonds, municipal bonds, and stocks actively traded on U.S. exchanges.
f. No assets were retired, traded, or sold during the year ended 9/30/15.
g. The Town is not required to, and therefore does not, allocate/pay interest earned on invested customer deposits to customers.
h. For purposes of this assignment, ignore the effects of capitalized interest.
i. Water and sewer services are consumed equally throughout a month.
The following information relates to the Town’s governmental funds.
1. Total fund balance for all governmental funds at 9/30/15 $ 100,000
2. The following transactions occurred during the year related to governmental funds and government-type activities
a. General obligation bonds of $5,000,000 were issued on 11/1/14 at 105 the proceeds of which were used to purchase park land on 12/15/14.
b. An additional $250,000 of general capital assets was purchased during the year.
c. Accounts payable at 9/30/14 amounted to $50,000 and at 9/30/15 amounted to $75,000.
d. Amounts paid on outstanding general obligation bonds were $500,000 for principal and $400,000 for interest.
e. Depreciation expense for general capital assets for the year ending 9/30/15 is $3,000,000.
f. At 9/30/15, $90,000 of property taxes receivable was expected to be collected in the spring of 2016.
0 comments