Following are the transaction for the city of Bay lake water utility fund by jun
ID: 2449617 • Letter: F
Question
Following are the transaction for the city of Bay lake water utility fund by june 30, 2017. Please make journal entries
(1) The $700,000 amount in the accrued utility revenue account was reversed.
(2) Billings to customers for water usage during fiscal year 2017 totaled $3,000,000; $198,000 of the total was billed to the General fund
(3) Expenses accrued for the period were ; management and administration $368,000, maintenance and distribution $704,000 and treatment plant $710,000.
(4) Cash receips for customer deposits totaled $2,485
(5) Cash collections on customer account totaled $3,013,000 of which $214,000 was from the general fund
(6) Accounts written off as uncollectible totaled $9,800
(7) The utility fund transfered $790,400 in excess operating income to the general fund
(8)Adjusting entries for the period were recorded as follows; depreciation was $655,000; the allowance for uncollectible accounts was increased by $14,000; an accrual for unbilled customer receivable was made for $691,000
(9) Closing entries and necessary adjustments were made to the net position accounts.
NOTE: Hi chegg expert, i have made journal entries for questions # 1 to 8, I need help with question number 9.
Explanation / Answer
The sequence of the closing process and the associated closing entries is: 1. Close revenue accounts to income summary, by debiting revenue and crediting income summary. 2. Close expense accounts to income summary, by debiting income summary and crediting expense. 3. Close income summary to retained earnings, by debiting income summary and crediting retained earnings. 4. Close dividends to retained earnings, by debiting retained earnings and crediting dividends. Closing entries Particulars Debit Credit Revenue account 3,000,000 Income Summary account 3,000,000 Income Summary account 1,736,800 management and administration 368,000 maintenance and distribution 704,000 Bad debts- account written off 9,800 Depreciation account 655,000 Note: treatment plant is capital expenditure is not a temporary account hence not requried to be closed. Income summary account 1,263,200 Retained Earning account 1,263,200