Question

Augusta has a municipal water and gas utility district (MUD). The trial balance on January 1, 20X1, follows:

Debit Credit

Cash $ 92,700

Accounts Receivable 26,500

Inventory of Supplies 9,400

Land 120,100

Plant and Equipment 492,000

Accumulated Depreciation $ 80,700

Vouchers Payable 15,500

Bonds Payable, 6% 518,000

Net Position:

Invested in Capital Assets, Net of Related Debt 13,400

Unrestricted 113,100

Total $ 740,700 $ 740,700

Additional Information for 20X1:

Charges to customers for water and gas were $421,700; collections were $433,000.

A loan of $31,080 for two years was received from the general fund.

The water and gas lines were extended to a new development at a cost of $75,700. The contractor was paid.

Supplies were acquired from central stores (internal service fund) for $12,800. Operating expenses were $329,200, and interest expense was $31,080. Payment was made for the interest and the payable to central stores, and $325,500 of the vouchers were paid.

Adjusting entries were as follows: estimated uncollectible accounts receivable, $6,900; depreciation expense, $33,500; and supplies expense, $16,400.

Required:

a. Prepare entries for the MUD enterprise fund for 20X1 and closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) journal entries I-M. IRecord the entry to adjust the depreciation for the period.

JRecord the entry for supplies expense to adjust supplies on hand.

KRecord the entry to close the nominal accounts.

LRecord the entry to close the profit and loss summary.

MRecord the increase in the net assets invested.