As of January 1, 2017, Ajman Tourism Agency decided to establish a privately-operated tourism zone (Enterprise)...

Transcribed Image Text:

As of January 1, 2017, Ajman Tourism Agency decided to establish a privately-operated tourism zone (Enterprise) Fund under Al-Zora name. During the year, the following transactions occurred:(000 AED) 1. A permanent contribution of 10,000 was received from the General Fund. 2. An amount of 20,000 was borrowed with a Note Payable from Ajman Bank at an interest rate of 5%. 50% of the notes have been used to finance capital assets. 3. Purchased for cash several items, the cost breakdown was: land improvement, 4,000; building, 7,000; equipment, 3,000; supplies, 6,000. 4. Charges for services amounted to 17,000, all received in cash. s. Cash expenses included: salaries, 3,000; utilities, 1,000; and paid annual interest. 6. Supplies were consumed in the amount of 5,000. 7. Depreciation was recorded for: building, 1,200, land improvement, 500; equipment, 300. Required: 1. Record the above transactions in general journal form. 2. Prepare, in good form, a Statement of Revenues, Expenses, and Changes in Fund Net Assets for the Al- Zora for the Year Ended December 31, 2017. 3. Prepare, in good form, a Statement of Fund Net Assets as of Dec. 31, 2017. As of January 1, 2017, Ajman Tourism Agency decided to establish a privately-operated tourism zone (Enterprise) Fund under Al-Zora name. During the year, the following transactions occurred:(000 AED) 1. A permanent contribution of 10,000 was received from the General Fund. 2. An amount of 20,000 was borrowed with a Note Payable from Ajman Bank at an interest rate of 5%. 50% of the notes have been used to finance capital assets. 3. Purchased for cash several items, the cost breakdown was: land improvement, 4,000; building, 7,000; equipment, 3,000; supplies, 6,000. 4. Charges for services amounted to 17,000, all received in cash. s. Cash expenses included: salaries, 3,000; utilities, 1,000; and paid annual interest. 6. Supplies were consumed in the amount of 5,000. 7. Depreciation was recorded for: building, 1,200, land improvement, 500; equipment, 300. Required: 1. Record the above transactions in general journal form. 2. Prepare, in good form, a Statement of Revenues, Expenses, and Changes in Fund Net Assets for the Al- Zora for the Year Ended December 31, 2017. 3. Prepare, in good form, a Statement of Fund Net Assets as of Dec. 31, 2017.

Answer rating: 100% (QA)

1 The thought process of the preparation of a general journal is as f... View the full answer