The following water and sewer fund information is available for the preparation of the financial statements for the City of Western Sands for the year ended December 31, 2017:.
Operating revenues-charges for services $18,087,000
Operating expenses:
Personnel services 6,177,000
Contractual services 2,995,000
Utilities 888,000
Repairs and maintenance 1,992,000
Depreciation 5,422,000
Interest revenue 29,000
State aid (intergovernmental revenue) 100,000
Interest expense 434,000
Capital contributions 1,632,000
Transfer to General Fund 365,000
Net position, January 1, 2017 2,700,000
From the information given above, prepare, in good form, a Water and Sewer Fund column for the proprietary fund Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31, 2017.

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:-

                                Water and Sewer fund

                      Statement of Revenues, Expenses,

                            and Changes in Fund Net Position

                       for the year ended December 31, 2017

Particulars                                                 Amount

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