Answer and Explanation:
The Preparation of water and sewer fund Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31, 2017 is shown below:-
<u>Water and Sewer fund</u>
<u>Statement of Revenues, Expenses,</u>
<u>and Changes in Fund Net Position </u>
<u>for the year ended December 31, 2017</u>
<u>Particulars Amount</u>
Operating revenue - Charges for
services $18,087,000
Operating expenses
Personal services $6,177,000
Contractual services $2,995,000
Utilities $888,000
Repair and Maintenance $1,992,000
Depreciation $5,422,000
Total operating expenses $17,474,000
Operating income $613,000
Non operating revenues
Interest revenue $29,000
Interest expenses ($434,000)
State aid $100,000
Total of non operation revenue ($305,000)
Capital contribution $1,632,000
Transfer to general fund ($365,000)
Change in net assets $1,575,000
Jan 1 Net assets $2,700,000
Dec 31 Net assets $4,275,000
We simply deduct all expenses from revenue to arrive ending net assets