Question

Oceanside County has operated a municipal swimming pool and aquatic center for more than 30 years. Local patrons, as well as tourists, enjoy reasonable rates for swimming lessons, swimming meets, and general swimming. Ten years ago, the aquatic center was quite profitable, so the county created an Enterprise Fund and moved accounting for the swimming operations from the General Fund to the new Enterprise Fund. Over the years, however, interest in swimming has declined and the aquatic center usage has decreased while costs have increased. During the current year, the aquatic center suffered a $116,000 loss that had to be covered by the county’s General Fund. In the upcoming fiscal year, the county projects to shortfall to be more than $150,000. Some local taxpayers have criticized the county for injecting money into a business that should be primarily funded through user charges. Supporters of the aquatic center, though, note that the municipal pool is part of the county’s Parks & Recreation Department which benefits the entire community, so support for the aquatic center is warranted.

This year’s activities included:

1. Total cash received from customers totaled $1,520,615.
2. Cash payments included $1,310,469 for personnel expenses, $128,000 for utilities, $97,820 for repairs and maintenance, $53,300 for interest on bonds, and $48,200 for supplies.
3. Equipment was sold for its carrying value of $12,845. Accumulated depreciation totaled $7,155.
4. Transfer from the General Fund to the Aquatic Center totaled $120,000.
   • Prepare general journal entries (with specific account names) to record the aquatic center’s operating activities for the year.
   • Prepare the closing entries for the General Fund.

Please explain thought process as best as possible, thank you. **this question has been asked before but the answer was unclear to me so please do not direct me there**

Answer 1

Particulars	Dr/Cr	Debit	Credit
General Fund A/c	Dr	1,16,000.00
To Bank A/c	Cr		1,16,000.00
(Being fund transfer to aquatic center)
Cash A/c	Dr	15,20,615.00
To Debtors A/c	Cr		15,20,615.00
(Being Cash received from customer)
Personnel Expenses A/c	Dr	13,10,469.00
Utilities A/c	Dr	1,28,000.00
Repairs and Maintenance	Dr	97,820.00
Interest on Bonds	Dr	53,300.00
Supplies A/c	Dr	48,200.00
To Bank	Cr		16,37,789.00
(Payment made to the expesnes)
Bank A/c	Dr	12,845.00
Accumulated Depreciation A/c	Dr	7,155.00
To Equipement A/c	Cr		20000
(Being equipement sold at net book value)
General Fund A/c	Dr	1,20,000.00
To Bank A/c	Cr		1,20,000.00
(Being amount transfered from the General Fund to the Aquatic Center)