Special Revenue Fund Transactions

The City of Memphis, Tennessee has a special revenue fund set up to account for funds received from the lease of park facilities within the Dr. Martin Luther King, Jr. Park. Funds are restricted for park operations. Suppose the following activities occur:

1. The general fund provides funding of $36,000 to purchase picnic tables, half of which will be repaid in the future, and half is a permanent transfer. The tables are purchased from a local craftsman.

2. Park fees of $15,000 are collected from residents, who pay in cash.

3. A new security system is installed, costing $25,000, paid in cash.

4. A $10,000 bill for lawn maintenance fees is received on account.

5. Park employee wages of $12,000 are paid.

Required

Record the above events in a special revenue fund.

(Options are: Accounts payable, Capital outlay, cash, Lawn maintenance expenditures, park fee revenue, transfer in, wage expenditures.)

Ref. Debit Credit Description Accounts payable Due to general fund To record transfer from general fund. To record purchase of equipment. To record collection of park fees. To record payment of cleanup fees. To record billing for lawn maintenance expense. To pay park employee wages