Journal entries for an enterprise fund fiscal year ended June 30, 2008
1. The general fund made a permanent contribution of $2 million for working capital to start a municipal airport. The city used part of that money, together with the proceeds from $25 mil revenue bond issue, to purchase an airport from a private company. The fair values of the assets and liabilities were as follows: accts rec 8,000, land 19 mil, build 5 mil, equip 1.8 mil, and acct pay (12,000). The city purchased the airport for the fair market value of its net assets.
2. Airlines were billed 3.9mil for rental rights. Of this amount, 3,890,000 is expected to be collectible.
3. Supplies totaling 4,500 were purchase on credit
4. Collections from airlines totaled 3,850,000
5. Salaries of 200,000 were paid to airport personnel employed by the city
6. Utility bills totaling 100,000 were paid
7. Interest of 1,825,000 was paid to the bondholders
8. The airport purchase additional equipment for 300,000 cash
9. Interest expense of 350,000 was accrued at the end of the year
10. Other accrued expenses totaled 55,000
11. Paid 12,500 of acct pay
12. Received 150,000 of interest revenue
These are the accounts that I have to work with:
Cash
Accounts receivable
Allowance for uncollectible accounts
Investments
Supplies
Land
Buildings
Accumulated depreciation—buildings
Accumulated depreciation—buildings
Equipment
Accumulated depreciation—equipment
Accounts payable
Accrued interest payable
Accrued operating expenses
Advance from General Fund
Revenue bonds payable
Transfers in from General Fund—capital contribution
Airline rental revenue
Interest revenue
Salaries expense
Supplies expense
Utilities expense
Interest expense
Bad debts expense
Depreciation expense--buildings
Depreciation expense--equipment
Other operating expenses
How would you journalize these entries for an enterprise fund?
File name: enterprise-fund.doc File type: application/msword Price: $10
