Carlton City has operated a City Utility (Enterprise) Fund for a number of years. The fund accounts for the activities of the city-owned electric, water and sewer systems. During the current year, the city engaged in the following transactions related to the city utility Fund.
REQUIRED:
Prepare the appropriate journal entries. If none is required, write "No entry required."
a) The city billed its customers $1 million for services provided during the year.
b) The city received $260,000 from a developer to connect new houses to the existing utility lines.
c) Depreciation on existing physical plant was $700,000.
d) Revenue bonds in the amount of $2 million were issued at par to finance new construction. The bond agreement requires that the city retain $200,000 of the bond proceeds for purposes of servicing the debt if revenues are not sufficient to do so.

Question

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The Answer of Carlton City has operated a City Utility (Enterprise) Fund for a number of years. The fund accounts for the activities of the city-owned electric, water and sewer systems. During the current year, the city engaged in the following transactions related to the city utility Fund.
REQUIRED:
Prepare the appropriate journal entries. If none is required, write "No entry required."
a) The city billed its customers $1 million for services provided during the year.
b) The city received $260,000 from a developer to connect new houses to the existing utility lines.
c) Depreciation on existing physical plant was $700,000.
d) Revenue bonds in the amount of $2 million were issued at par to finance new construction. The bond agreement requires that the city retain $200,000 of the bond proceeds for purposes of servicing the debt if revenues are not sufficient to do so.

Carlton City Has Operated a City Utility (Enterprise) Fund for a Number