On April 1, 2020, the City purchased a swimming pool from a private operator for $500,000 and created a Swimming Pool (Enterprise) Fund. The city has a calendar year as its fiscal year. During the...

On April 1, 2020, the City purchased a swimming pool from a private operator for $500,000 and created a Swimming Pool (Enterprise) Fund. The city has a calendar year as its fiscal year. During the year ended December 31, 2020, the following transactions occurred related to the City’s Swimming Pool Fund:

1. On April 1, 2020, $300,000 was provided by a one-time contribution from the General Fund, and $200,000 was provided by a loan from a local bank (secured by a note), both of which were received in cash. The loan (Notes Payable) has an annual interest rate of 5%, payable semiannually on October 1 and April 1.


2. The purchase of the pool was recorded (paid in cash). Based on an appraisal, it was decided to allocate $100,000 to the land, $300,000 to improvements other than buildings (the pool), and $100,000 to the building.


3. Charges for services amounted to $270,000, all received in cash.


4. Salaries paid to employees amounted to $172,500, all paid in cash, of which $100,000 was cost of services and $72,500 was administration.


5. The first interest payment (for the loan in transaction #1) was made to the bank.


6. Depreciation of $28,125 for the pool and $7,500 on the building was recorded for the nine months they were in operation.


7. Interest (for the loan in transaction #1) was accrued for the year.

Required:

Prepare journal entries to record the transactions of the swimming pool (enterprise) fund for the fiscal year ended December 31, 2020.
(If no entry is required for a transaction/event,

state “No entry.”
)