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Enterprise Fund Journal Entries Listed below are selected transactions for the Maury County Enterprise Fund: Purchased a building on January 2, 20X2, by paying $50,000
Enterprise Fund Journal Entries
Listed below are selected transactions for the Maury County Enterprise Fund:
- Purchased a building on January 2, 20X2, by paying $50,000 down and borrowing $650,000 on a 4.5%, 30-year mortgage. Assume monthly mortgage payments are due each month, beginning next month. The building will be depreciated over 40 years with no salvage value using the straight-line method.
- Ordered supplies, $45,000.
- Purchased supplies on account, $47,000 (see #2). The fund uses the perpetual inventory method when accounting for supplies.
- Paid employee salaries, $150,000. Accrued salaries at year end were $21,000.
- Billed General Fund departments $75,000 for services provided to those departments. Billings to the Internal Service Fund totaled $4,500. 90% of these billings were collected by year end. The remaining 10% is not expected to be collected from the other funds until the second quarter of the next fiscal year.
- The first monthly mortgage payment was made (principal and interest).
Requirements:
Prepare the journal entries required in the Internal Service Fund. If no entry is required, state No entry required and explain why.
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