Do not give solution in image As of July 1, 2017, the Village of Boiling Springs decided to purchase a privately operated swimming pool and to create a swimming pool (enterprise) fund. During the year, thefollowing transactions occurred:A permanent contribution of $600,000 was received from the general fund.Revenue bonds were sold at par in the amount of $1,200,000.Several items were purchased for cash, with a cost breakdown as follows: land, $300,000;building, $400,000, land improvement, $400,000; equipment, $200,000; and supplies,$150,000.Charges for services amounted to $600,000, all received in cash.Cash expenses included salaries of $200,000; utilities of $100,000, and interest of$72,000.Supplies were consumed in the amount of $120,000.Depreciation was recorded as follows: building, $20,000, land improvement, $20,000; andequipment, $20,000.The books were closed. Close all accounts to net position.Required:Record the above transactions in general journal form (on the books of the swimming poolfund)

A journal entry is a record of the business transactions in the accounting books of a business.

Answered: As of July 1, 2017, the Village of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The City of Pfeiffer starts the year of 2017 with the general fund and an enterprise fund. The general fund has two activities: education and parks/recreation. For convenience, assume that the general fund holds $123,000 cash and a new school building costing $1 million. The city utilizes straight-line depreciation. The building has a 20-year life and no salvage value. The enterprise fund has $62,000 cash and a new $600,000 civic auditorium with a 30-year life and no salvage value. The enterprise fund monitors just one activity, the rental of the civic auditorium for entertainment and other cultural affairs.The following transactions for the city take place during 2017. Assume that the city’s fiscal year ends on December 31.a. Decides to build a municipal park and transfers $70,000 into a capital projects fund and immediately expends $20,000 for a piece of land. The creation of this fund and this transfer were made by the highest level of government authority.b. Borrows $110,000 cash…
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This year Southfork began work on a senior center to hold activities for its growing senior citizen population. It is to be financed by a $5,000,000 bond issue, a $500,000 grant, and a $500,000 General Fund transfer. The following transactions occurred during the current year: The General Fund transferred $500,000 to the Senior Center Capital Projects Fund. A plot of land was purchased for $400,000 in cash. (This cost had not been encumbered.) Preliminary planning and engineering costs of $95,000 were vouchered. (This cost had not been encumbered.) A contract was signed with Sunset Construction Company for the major part of the project on a bid of $4,950,000. The $5,000,000 bonds were issued at par. Temporary investments were purchased at a cost of $3,500,000. A payable was recorded for a $49,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new building. (This cost had not been encumbered.) An invoice in the amount of $1,500,000 was…
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