The city of Sandwhich purchased a swimming pool from a private operator as of April 1, 2020 for $400,000, of which $200,000 was provided by a one-time contribution from the General Fund, and $200,000was provided by a loan from the First National Bank, secured by a note. The loan has an annual interest rate of 6 percent, payable semiannually on October 1 and April 1; principal payments of $100,000are to be made annually, begining on April 1, 2021. The city has a calander year as its fiscal year. During the year ended December 31, 2020, the following transactions occured related to the City of Sandwhich Swimming Pool. 1. The amounts were received from the City General Fund and the Fist National Bank. 2. A loan was provided in the amount of $125,000 from the Water Utility Fund to provide the working capital. 3. The purchase of the pool was recorded. Based on the appraisal, it was decided to allocate $100,000 to the land, $200,000 to imporvements other then buildings ( the pool), and $100,000 to the building. 4. Charges to patrons during the season amounted to $242,000, all received in cash. 5. salaries paid to employees amounted to $115,000, all paid ion cash, of which $75,000 was cost of services and $40,000 was administrative. 6. Supplies purchased amounted to $40,000; all but $5,000 was used. Cash was paid for the supplies, all of which was for cost of sales and service. 7. Administrative expenses amounted to $16,500, paid in cash. 8. The first interest payment was made to First National Bank. 9. The short ter loan was repaid to the wter Utility Fund. 10. Depreciation of $18,500 for the pool and $6,000 on the building was recorded for the nine months they were in operation. 11. Interest was accured for the year. 12. Closing entries were prepared. Required: a. Prepare entried to record the transactions.
The city of Sandwhich purchased a swimming pool from a private operator as of April 1, 2020 for $400,000, of which $200,000 was provided by a one-time contribution from the General Fund, and $200,000was provided by a loan from the First National Bank, secured by a note. The loan has an annual interest rate of 6 percent, payable semiannually on October 1 and April 1; principal payments of $100,000are to be made annually, begining on April 1, 2021. The city has a calander year as its fiscal year. During the year ended December 31, 2020, the following transactions occured related to the City of Sandwhich Swimming Pool.
1. The amounts were received from the City General Fund and the Fist National Bank.
2. A loan was provided in the amount of $125,000 from the Water Utility Fund to provide the
3. The purchase of the pool was recorded. Based on the appraisal, it was decided to allocate $100,000 to the land, $200,000 to imporvements other then buildings ( the pool), and $100,000 to the building.
4. Charges to patrons during the season amounted to $242,000, all received in cash.
5. salaries paid to employees amounted to $115,000, all paid ion cash, of which $75,000 was cost of services and $40,000 was administrative.
6. Supplies purchased amounted to $40,000; all but $5,000 was used. Cash was paid for the supplies, all of which was for cost of sales and service.
7. Administrative expenses amounted to $16,500, paid in cash.
8. The first interest payment was made to First National Bank.
9. The short ter loan was repaid to the wter Utility Fund.
10.
11. Interest was accured for the year.
12. Closing entries were prepared.
Required:
a. Prepare entried to record the transactions.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Net Position for the year ended December 31, 2020, For the City of Sandwhich Swimming Pool Fund.
c. Prepare a Statement of Net Positionas of December 31, 2020, for the City of Sandwhich Swimming Pool Fund.
d. Prepare a Statement of Cash Flows for the year December 31, 2020, for the City of Sandwhich Swimming Pool Fund.
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