Question

. As of July 1, 2018, the City of Saratoga Springs decided to purchase a privately operated swimming pool and to construct a Swimming Pool (Enterprise) Fund. During the year, the following transactions occurred:

(a) A permanent contribution of $600,000 was received from the General Fund.

(b) Revenue Bonds were sold at par in the amount of $1,200,000.

(c) Purchased for cash several items, the cost breakdown was: land, $300,000; building, $400,000, land improvement, $400,000; equipment, $200,000; supplies, $150,000.

(d) Charges for services amounted to $600,000, all received in cash.

(e) Cash expenses included: salaries, $200,000; utilities, $100,000; interest (paid on 6/30/09), $72,000.

(f) Supplies were consumed in the amount of $120,000.

(g) Depreciation was recorded for: building, $20,000, land improvement, $20,000; equipment, $20,000.

(h) The books were closed. Close all accounts to Net Assets.

How would you first the above transactions in general journal form .

How would you then construct in good form, a Statement of Revenues, Expenses, and Changes in Fund Net Assets for the City of Saratoga Springs Swimming Pool Fund for the Year Ended June 30, 2019.

After this how would you construct, in good form, a Statement of Fund Net Assets for the City of Saratoga Springs Swimming Pool Fund as of June 30, 2019.

Finally how would you construct, in good form, a Statement of Cash Flows for the City of Saratoga Springs Swimming Pool Fund for the Year Ended June 30, 2019.

Answer 1

City of Saratoga Springs Journal Enteries Trans. Particulars a. Cash a/c To Transfers In Debit in $ Credit in $ 600000 600000 b. 1200000 Cash a/c To Note Payable 1200000 C. Land a/c Building a/c Land Improvements a/c Dr. Equipment a/c Supplies a/c To Cash 300000 400000 400000 200000 150000 Dr. 1450000 d. Dr. 600000 Cash a/c To Operating Revenues-Charges for Services 600000 e. Operating Expense - Salaries a/c Dr. Operating Expense - Utilities a/c Dr. Nonoperating Expense - Interest a/c Dr. To Cash 200000 100000 72000 372000 f. Dr. 120000 Operating Expense - Supplies a/c To Supplies 120000 40000 Operating Expense - Depreciation ac Dr. To Accumulated Deprecation-Building To Accumulated Depreciation-Land Improvements To Accumulated Depreciation-Equipment 20000 20000 20000 h. 600000 600000 Operating Revenues-Charges for Services a/c Dr. Transfers In a/c Dr. To Operating Expense - Salaries To Operating Expense - Utilities To Nonoperating Expense - Interest To Operating Expense - Supplies To Operating Expense - Depreciation To Net Assets 200000 100000 72000 120000 40000 668000

600000 Statement of Revenues, Expenses and Changes in Fund Net Assets Year ended 30.6.2019 Operating Revenues: Charges for Services Operating Expenses: Salaries Utilities Supplies Depreciation Total Operating Expenses Operating Income Nonoperating Expenses: Interest Income (Loss) Before Transfers Transfers In Change in Net Assets Net Assets, July 1, 2018 Net Assets, June 30, 2019 200000 100000 120000 40000 460000 140000 72000 68000 600000 668000 668000 578000 30000 608000 300000 380000 Statement of Fund Net Assets Year ended 30.6.2019 Assets: Current Assets: Cash Supplies Total Current Assets Capital assets: Land Land Improvement Less: Accumulated Depreciation Building Less: Accumulated Depreciation Equipment Less: Accumulated Depreciation Total Capital assets Total Assets Liabilities: Long-Term Liabilities: Note Payable Net Assets: Invested in Capital Assets, Net of Related Debt Unrestricted Total Net Assets 400000 -20000 400000 -20000 200000 -20000 380000 180000 1240000 1848000 1200000 40000 608000 648000 Capital Assets (Net) Related Debt 1240000 1200000 40000

Statement of Cashflows Year ended 30.6.2019 Cash flows from Operating Activities: Cash received from Customers Cash Paid to Suppliers and Employees Net Cash Provided by Operating Activities Cash Flows from Non-Capital Financing Activities: Transfer from General Fund 600000 450000 150000 600000 Cash Flows from Capital and Related Financing Activities: Proceeds of Note Payable Interest Paid on Revenue Bonds Acquisition of Capital Assets Net Cash Used for Capital and Related Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1, 2018 Cash and Cash Equivalents, June 30, 2019 1200000 -72000 - 1300000 -172000 578000 578000 140000 Reconciliation of Operating Net Income To Net Cash provided by Operating Activities Net Operating Income Adjustments: Depreciation Expense Increase in Supplies Inventory Total Adjustments Net Cash Provided by Operating Activities 40000 -30000 10000 150000