Reference no: EM132582448

Using the fact scenario below, please respond in Excel to the following exercises:

Question 1: Prepare the journal entries to record revenues and disbursements if the city treats the program as an enterprise fund.

Question 2: Prepare the journal entries to record revenues and disbursements if the city treats the program as a special revenue fund.

Facts:

• The City of Duluth teamed with a professional football franchise to offer one day "Learn to Play Football" clinics for kids during the summer. The City provided the Town Green as a location, and the franchise covered all costs.

• 1,500 kids registered for the Duluth clinics during 2018. The franchise contributed upfront $100 per registered child to the city to cover expenses. Each child attending received a replica jersey of the team.

• The city also had a four-year loan from the bank for $24,000 at a 7% interest rate.

• Cash disbursements occurred for wages of clinic workers and on-site medical staff in the amount of $31,000, advertising and promotional items $40,000, payroll taxes $9,300, insurance $10,000, equipment rentals $12,800, interest on banknote paid semi-annually $840, landscaping repairs and clean up services $6,700, refreshments, $20,400, and parking for volunteers $2,300. All disbursements occurred at year end except $5,000 of wages and $1,500 of payroll taxes.