The City of Melbourne has created an enterprise fund to provide recreational activities for the community through
Question:
The City of Melbourne has created an enterprise fund to provide recreational activities for the community through a city owned health club. Listed below are transactions related to the City of Melbourne Health Club. Prepare the following assorted journal entries for the health club and classify each transaction on the proprietary fund's cash flow statement - Operating, Investing, Capital Financing, Non-Capital Financing, or None. Each question is worth 2 points.
1 The City of Melbourne Health Club receives $1,000,000 cash contribution from the general fund to acquire athletic equipment. (1 point)
What is the classification on the Cash Flow Statement? (1 point)
2 The City of Melbourne Health Club Collects $125,275 in health club memberships from community members. (1 point)
What is the classification on the Cash Flow Statement?
3 Athletic Equipment and exercise machines costing $800,000 was purchased and paid for by the enterprise fund. (1 point)
What is the classification on the Cash Flow Statement?
4 The general fund bills the health club enterprise fund for reimbursement for athletic equipment installation that was performed by employees of the general fund. The general fund bills the health club enterprise fund $75,000 for these services. (1 point)
What is the classification on the Cash Flow Statement?
5 The city council of the City of Melbourne becomes concerned about the economic viability of the health club enterprise fund and votes to transfer $325,000 to the health club enterprise fund for ongoing operations to be repaid to the general fund (without interest) during the following fiscal year. (1 point)
What is the classification on the Cash Flow Statement?
Accounting For Governmental And Nonprofit Entities
ISBN: 9781260118858
19th Edition
Authors: Jacqueline Reck, Suzanne Lowensohn, Daniel Neely