On June 14, 2018, Fred City agreed to transfer cash of $52,000 from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund. The cash was transferred on June 30, 2018.Required:(A) Prepare all the required journal entries and identify the fund in which each entry was recorded for the fund financial statements.(B) Prepare all the required journal entries and identify the type of activity for the government-wide financial statements.
What will be an ideal response?
| (A) Fund financial statements - General fund | |||
| 6/14 | Other financing use - Transfers out - Enterprise fund | 52,000 | |
| Due to Enterprise fund | 52,000 | ||
| 6/30 | Due to Enterprise fund | 52,000 | |
| Cash | 52,000 | ||
| Fund Financial Statements - Enterprise fund | |||
| 6/14 | Due from General fund | 52,000 | |
| Other financing Source - Transfers in - General fund | 52,000 | ||
| 6/30 | Cash | 52,000 | |
| Due from General fund | 52,000 | ||
| (B) Government-wide financial statements - Governmental activities | |||
| 6/14 | No entry | ||
| 6/30 | Transfers out - Swimming pool | 52,000 | |
| Cash | 52,000 | ||
| Government-wide financial statements - Business-type activities | |||
| 6/14 | No entry | ||
| 6/30 | Cash | 52,000 | |
| Transfers in - General fund | 52,000 | ||
Business
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