Enterprise Funds - Journal Entries

Required: Book journal entries for the following transactions for the Water Utility Fund ONLY:

1. In order to provide cash to be used for acquisition of a building and equipment needed to handle the Supply Fund efficiently, the towns Water Utility Fund provides a long-term, interest-free interfund loan of $130,000 to the Supply Fund which will be repaid in 20 equal annual installments. The entry to record the loan is as follows:

Water Utility Fund:

2. Utility customers are billed during the year with bills to nongovernmental customers totaling $696,000 and bills to the General Fund amounted to $30,000. All revenue was from the sale of water:

Water Utility Fund:

3. Collections on receivables from nongovernmental water customers totaled $680,000:

Water Utility Fund:

4. Materials and supplies in the amount of $138,000 were purchased during the year by the Water Utility Fund:

Water Utility Fund:

5. Customers deposits amounting to $1,320 were refunded by check to customers discontinuing service. Deposits totaling $2,525 were received from new customers.

Water Utility Fund: