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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
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)
- A permanent contribution of 10,000 was received from the General Fund.
- 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.
- Purchased for cash several items, the cost breakdown was: land improvement, 4,000; building, 7,000; equipment, 3,000; supplies, 6,000.
- Charges for services amounted to 17,000, all received in cash.
- Cash expenses included: salaries, 3,000; utilities, 1,000; and paid annual interest.
- Supplies were consumed in the amount of 5,000.
- Depreciation was recorded for: building, 1,200, land improvement, 500; equipment, 300. Record the above transactions in general journal form.
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