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.

1. The city billed its customers $2 million for services provided during the year.
2. The city received $600,000 from a developer to connect new houses to the existing utility lines.
3. Revenue bonds in the amount of $2 million were issued at par to finance new construction. The bond agreement requires that the city retain $400,000 of the bond proceeds for purposes of servicing the debt if revenues are not sufficient to do so.
4. Depreciation on existing physical plant was $500,000.