Q&A Hero

Question

The following transactions relate to a municipal golf course and tennis club, financed with debt secured by membership fees.

1. The General Fund loaned $25,000,000 cash to the Enterprise Fund. The note is not interest-bearing.

2. The municipal golf course and tennis club purchased land and constructed the facilities which totaled expenditures of $23,700,000.

3. Bonds were issued by the municipal golf course and tennis club for $20,000,000, par value of the bonds.

4. Membership fees were billed in the amount of $4,800,000. $4,200,000 was collected.

5. $5,000,000 was repaid to the general fund, with the anticipation of repaying $5,000,000 more per year for the next four years.

Required:

Prepare the necessary journal entries for each of the above transactions for the Enterprise Fund.