Palo Alto 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 received $1 million from a developer to connect new houses to the existing utility lines.
2. The city billed its customers $750,000 for services provided during the year.
3. Depreciation on existing physical plant was $400,000.
4. Revenue bonds in the amount of $5 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.