The Following Transactions Relate to a Municipal Golf Course and Tennis

Question 25
Essay

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.