ACCY 4070 - Ch. 7 HW Problem 2 Journal Entries

City of Bay Lake Water Utility Fund - FY2027 journal and closing entries (fill in the blank)

1 - WATER UTILITY FUND: The amount in the Accrued Utility Revenue account (from the prior year) was reversed. / Dr ________ / Cr ________

Dr Sales of Water 500,100 / Cr Accrued Utility Revenue 500,100

2 - WATER UTILITY FUND: Billings to customers for water usage during the year, part of which was billed to the General Fund. / Dr ________ / Dr ________ / Cr ________

Dr Accounts Receivable 2,717,486 / Dr Due From General Fund 188,916 / Cr Sales of Water 2,906,402

3 - WATER UTILITY FUND: Cash was received for interest earned on investments, including the accrued interest from the prior year. / Dr ________ / Cr ________ / Cr ________

Dr Cash 253,362 / Cr Interest Receivable 79,907 / Cr Interest Income 173,455

4 - WATER UTILITY FUND: Expenses accrued for the period: management and administration, maintenance and distribution, and treatment plant. / Dr ________ / Dr ________ / Dr ________ / Cr ________

Dr Management and Administration Expense 351,207 / Dr Maintenance and Distribution Expense 671,510 / Dr Treatment Plant Expense 677,489 / Cr Accounts Payable 1,700,206

5 - WATER UTILITY FUND: Cash receipts for customer deposits. / Dr ________ / Cr ________

Dr Cash—Restricted 2,367 / Cr Customer Deposits 2,367

6 - WATER UTILITY FUND: Cash collections on customer accounts, part of which was from the General Fund. / Dr ________ / Cr ________ / Cr ________

Dr Cash 2,870,636 / Cr Accounts Receivable 2,666,285 / Cr Due From General Fund 204,351

7 - WATER UTILITY FUND: Cash payments for the period: accounts payable; interest (including the interest payable); bond principal; machinery and equipment; and return of customer deposits. / Dr ________ / Dr ________ / Dr ________ / Dr ________ / Dr ________ / Dr ________ / Cr ________ / Cr ________

Dr Accounts Payable 1,426,436 / Dr Interest Payable 131,842 / Dr Interest Expense 254,285 / Dr Current Portion of Long-Term Debt 395,000 / Dr Machinery and Equipment 576,133 / Dr Customer Deposits 900 / Cr Cash 2,783,696 / Cr Cash—Restricted 900

8 - WATER UTILITY FUND: A state grant was received to help pay for new water treatment equipment. / Dr ________ / Cr ________

Dr Cash 468,750 / Cr Contribution—Capital Grant 468,750

9 - WATER UTILITY FUND: Accounts were written off as uncollectible. / Dr ________ / Cr ________

Dr Accumulated Provision for Uncollectible Accounts 9,882 / Cr Accounts Receivable 9,882

10 - WATER UTILITY FUND: The utility fund transferred excess operating income to the General Fund. / Dr ________ / Cr ________

Dr Interfund Transfers Out 789,533 / Cr Cash 789,533

11 - WATER UTILITY FUND: Adjusting entries: depreciation on buildings and on machinery and equipment; increase in the allowance for uncollectible accounts; accrual for unbilled customer receivables; accrued interest income; and accrued interest expense. / Dr ________ / Dr ________ / Dr ________ / Dr ________ / Dr ________ / Cr ________ / Cr ________ / Cr ________ / Cr ________ / Cr ________ / Cr ________

Dr Depreciation Expense 592,283 / Dr Uncollectible Accounts 14,718 / Dr Accrued Utility Revenue 690,847 / Dr Interest Receivable 15,641 / Dr Interest Expense 60,600 / Cr Accumulated Depreciation—Buildings 236,913 / Cr Accumulated Depreciation—Machinery and Equipment 355,370 / Cr Accumulated Provision for Uncollectible Accounts 14,718 / Cr Sales of Water 690,847 / Cr Interest Income 15,641 / Cr Interest Payable 60,600

12 - WATER UTILITY FUND: The Revenue Bond Payable account was adjusted to record the current portion of the bond. / Dr ________ / Cr ________

Dr Revenue Bond Payable 395,000 / Cr Current Portion of Long-Term Debt 395,000

13a - WATER UTILITY FUND (Closing): Close the revenue, contribution, expense, and transfer accounts to net position. / Dr ________ / Dr ________ / Dr ________ / Cr ________ / Cr ________ / Cr ________ / Cr ________ / Cr ________ / Cr ________ / Cr ________ / Cr ________

Dr Sales of Water 3,097,149 / Dr Interest Income 189,096 / Dr Contribution—Capital Grant 468,750 / Cr Management and Administration Expense 351,207 / Cr Maintenance and Distribution Expense 671,510 / Cr Treatment Plant Expense 677,489 / Cr Interest Expense 314,885 / Cr Uncollectible Accounts 14,718 / Cr Depreciation Expense 592,283 / Cr Interfund Transfers Out 789,533 / Cr Net Position—Unrestricted 343,370

13b - WATER UTILITY FUND (Closing): Adjust net position for the change in net investment in capital assets (increased by equipment purchased and bond principal repaid; decreased by depreciation). / Dr ________ / Cr ________

Dr Net Position—Unrestricted 378,850 / Cr Net Position—Net Investment in Capital Assets 378,8