Thoroughgood County has a municipal golf course and tennis club which is funded by the membership fees it charges.The club also has 6% bonds outstanding amounting to $20,000,000 on which it pays interest semi-annually.The club had the following transactions.
1.An addition to the golf clubhouse was added for $2,000,000,funded out of operations.
2.The following expenses were incurred and paid: $80,000 wages; $10,000 payroll taxes; $45,000 water bill; and $12,000 equipment repair.
3.Interest on the bonds was paid amounting to $600,000.
4.$5,000,000 of operating cash excess was repaid to the general fund for a previous loan.
5.Depreciation of $500,000 was recorded for the buildings.
Required:
Prepare the necessary journal entries for each of the above transactions for the Enterprise Fund.

Question

Quizplus · Accepted Answer

The Answer of Thoroughgood County has a municipal golf course and tennis club which is funded by the membership fees it charges.The club also has 6% bonds outstanding amounting to $20,000,000 on which it pays interest semi-annually.The club had the following transactions.
1.An addition to the golf clubhouse was added for $2,000,000,funded out of operations.
2.The following expenses were incurred and paid: $80,000 wages; $10,000 payroll taxes; $45,000 water bill; and $12,000 equipment repair.
3.Interest on the bonds was paid amounting to $600,000.
4.$5,000,000 of operating cash excess was repaid to the general fund for a previous loan.
5.Depreciation of $500,000 was recorded for the buildings.
Required:
Prepare the necessary journal entries for each of the above transactions for the Enterprise Fund.

Thoroughgood County Has a Municipal Golf Course and Tennis Club