Assume that Croton City operates a municipal swimming pool. It started the year with cash of $5; net capital assets of $510 (the swimming pool cost $600 and the accumulated depreciation was $90); and outstanding bonds of $480 (original debt of $600 was being paid off over 15 years in equal annual principal installments of $40 at December 31 of each year, with interest of 5 percent per annum on the outstanding balance). Prepare journal entries, as appropriate, to record these transactions in the Croton City Swimming Pool Enterprise Fund.

1. Croton City received swimming pool admissions fees of $70.

2. Salaries totaling $8 were paid to a lifeguard and a clerk.

3. The city paid the annual debt service requirement on the swimming pool bonds.

4. The city recorded depreciation on the swimming pool. The cost of the pool is being depreciated over 20 years.

Answer rating: 100% (QA)

Journal Entries for Croton City Swimming Pool Enterprise Fund 1 Swimming Pool Admissions Fees Cash ... View the full answer