Option #2: Enterprise funds related to capital contributions, restricted assets, and landfills Desert Palms 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 countys 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 countys Parks & Recreation Department which benefits the entire community, so support for the aquatic center is warranted.

This years activities included:

Total cash received from customers totaled $1,520,615.

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.

Equipment was sold for its carrying value of $12,845. Accumulated depreciation totaled $7,155.

Transfer from the General Fund to the Aquatic Center totaled $120,000.

Prepare general journal entries to record the aquatic centers operating activities for the year.

Prepare the closing entries for the General Fund.