The City of Evansville operated a summer camp program for at-risk youth. Businesses and nonprofit organizations sponsor one or more youth by paying the registration fee for program participants. The following Schedule of Cash Receipts and Disbursements summarizes the activity in the program’s bank account for the year. At the beginning of 2020, the program had unrestricted cash of $26,000. Cash Basis 12 months Cash receipts: Registration fees $ 130,000 Borrowing from bank 56,000 Total deposits 186,000 Cash disbursements: Wages 70,800 Payroll taxes 9,500 Insurance (paid monthly) 6,500 Purchase of bus 65,000 Interest on bank note 1,680 Total checks 153,480 Excess of receipts over disbursements $ 32,520 The loan from the bank is dated April 1 and is for a five-year period. Interest (6 percent annual rate) is paid on October 1 and April 1 of each year, beginning October 1, 2020. The bus was purchased on April 1 with the proceeds provided by the bank loan and has an estimated useful life of five years (straight-line basis—use monthly depreciation). All invoices and salaries related to 2020 had been paid by close of business on December 31, except for the employer’s portion of December payroll taxes, totaling $1,500. Required: a. Prepare the journal entries, closing entries, and a Statement of Revenues, Expenses, and Changes in Fund Net Position assuming the City intends to treat the summer camp program as an enterprise fund. b. Prepare the journal entries, closing entries, and a Statement of Revenues, Expenditures, and Changes in Fund Balance assuming the City intends to treat the summer camp program as a special revenue fund.

Essentials of Business Analytics (MindTap Course List)

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ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter11: Linear Optimization Models

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Problem 11P: The employee credit union at State University is planning the allocation of funds for the coming...

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The City of Evansville operated a summer camp program for at-risk youth. Businesses and nonprofit organizations sponsor one or more youth by paying the registration fee for program participants. The following Schedule of Cash Receipts and Disbursements summarizes the activity in the program’s bank account for the year.

At the beginning of 2020, the program had unrestricted cash of $26,000.

	Cash Basis
	12 months
Cash receipts:
Registration fees		$	130,000
Borrowing from bank			56,000
Total deposits			186,000
Cash disbursements:
Wages			70,800
Payroll taxes			9,500
Insurance (paid monthly)			6,500
Purchase of bus			65,000
Interest on bank note			1,680
Total checks			153,480
Excess of receipts over disbursements		$	32,520

The loan from the bank is dated April 1 and is for a five-year period. Interest (6 percent annual rate) is paid on October 1 and April 1 of each year, beginning October 1, 2020.
The bus was purchased on April 1 with the proceeds provided by the bank loan and has an estimated useful life of five years (straight-line basis—use monthly depreciation).
All invoices and salaries related to 2020 had been paid by close of business on December 31, except for the employer’s portion of December payroll taxes, totaling $1,500.

Required:
a. Prepare the journal entries, closing entries, and a Statement of Revenues, Expenses, and Changes in Fund Net Position assuming the City intends to treat the summer camp program as an enterprise fund.
b. Prepare the journal entries, closing entries, and a Statement of Revenues, Expenditures, and Changes in Fund Balance assuming the City intends to treat the summer camp program as a special revenue fund.

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