Q) City xyz has decided to construct a town swimming pool which they will charge for admissions. The following are the facts that are integral to the journal entries and explanation that have to be made.

1- Indicate what fund will be operating out of ?

2- City xyz issued $400,000 of 6% percent revenue bonds, it used the fund to build the swimming pool and the swimming pool is complete, bonds were issued at par.

3- Consistent with the bond covenant, City xyz set aside 1% of the bond's gross receipts for future repairs. City xyz has designated an equal dollar amount of net position as restricted to repairs.

4- City xyz has accrued 6 months of bond interest.

5- City xyz has incurred $25,000 of repairs paying them with cash set aside repair contingencies.