The city of trawville has a water enterprise fund

The city of Trawville has a Water Enterprise Fund that provides potable water for use by the
residents and businesses of the city. The Water Enterprise Fund also provides potable
water to other city departments. The Water Enterprise Fund bills the General Fund ($1,800)
and the Golf Course Enterprise Fund ($1,600) for their water use during the most recent
month. What journal entry should be recorded in the Water Enterprise Fund?
Select one:
a.
Due from General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800
Due from Golf Course Enterprise Fund . . . . . . . . . . . . . . . . . 1,600
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400
b.

Due from General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800
Due from Golf Course Enterprise Fund . . . . . . . . . . . . . . . . . . 1,600
Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400
c.
Due from General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800
Due from Golf Course Enterprise Fund . . . . . . . . . . . . . . . . . . . . 1,600
Transfer in from General Fund . . . . . . . . . . . . . . . . . . . . . . . . 1,800
Transfer in from Golf Course Enterprise Fund . . . . . . . . . . . 1,600
d.
Expenditures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400
Due to General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800
Due to Golf Course Enterprise Fund. . . . . . . . . . . . . . . . . . 1,600
Due from General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800
Due from Golf Course Enterprise Fund . . . . . . . . . . . . . . . . . 1,600
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400
An Enterprise Fund purchases $100,000 of capital assets for cash. How should the
purchase of capital assets be reported in the Enterprise Fund?
Select one:
a.

Expenses—capital asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
b.
Capital assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
c.
Expenditures—capital outlay . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
d. None of the above.
Capital assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000