Enterprise fund journal entries and trial balance
The following transactions relate to the Fiedler County Utility Plant, a newly established municipal facility financed with debt secured solely by net revenue from fees and charges to external users.
1. The general fund made a $30,000,000 contribution to establish the working capital of the new utility enterprise fund.
2. The utility fund purchased a utility plant for $25,250,000.
3. The utility fund issued a $5,000,000 revenue bond for renovations to the facility.
4. Utility bills of $4,500,000 were mailed to customers.
5. Utility collections totaled $4,400,000.
6. Renovations of $3,500,000 were completed during the year and recorded as building improvements.
7. Salaries of $700,000 were paid to employees.
8. Interest expense of $300,000 related to the revenue bonds was paid during the year, and
$100,000 was accrued at year end.
9. Operating expenses totaling $1,000,000 were paid during the year, and an additional $100,000 of operating expenses was accrued at year end.
10. Depreciation of $1,050,000 was recorded.
REQUIRED: Prepare all necessary journal entries and an adjusted trial balance for the utility enterprise fund for the year.