Preparing closing entries and financial statements from a trial balance.

Presented on the following page is the adjusted trial balance for the Water Enterprise Fund of the City of Delray Dunes at December 31, 2009, the end of the fiscal year. Based on this information,

a. prepare the entry necessary to close the accounts

b. compute the ending balances for

(1) net assets invested in capital assets, net of related debt

(2) restricted net assets

(3) unrestricted net assets

Debt related to the capital assets consists solely of the revenue bonds payable.

City of Delray Dunes

Water Enterprise Fund

Adjusted Trial Balance

December 31, 2009

Cash and cash equivalents

$ 860,750

Cash, restricted

47,500

Investments

2,037,000

Due from other funds

595,000

Land

976,000

Machinery and equipment

2,264,000

Accumulated depreciation, machinery and equipment

$ 1,840,000

Buildings

2,058,000

Accumulated depreciation, buildings

933,000

Accounts payable

398,250

Revenue bonds payable, current portion

50,000

Revenue bonds payable, noncurrent portion

1,650,000

Net assets

4,087,000

Revenues - charges for services

3,608,000

Revenues - other

61,200

Operating expenses - purchase of water

2,389,000

Operating expenses - materials and supplies

276,000

Operating expenses - personal services

827,195

Operating expenses - depreciation

253,000

Nonoperating revenues-investment gains (losses)

29,680

Nonoperating expenses-interest

14,325

_________

$12,627,450

$12,627,450

(a) Closing Entries

2009

Date

Account Titles and Explanation

PR

Debit

Credit

(b-1) Net Assets Invested in Capital Assets, net of Related Debt

(b-2) Restricted Net Assets

(b-3) Unrestricted Net Assets