The following entries were made in the books of Saratoga Springs Swimming Pool F
ID: 2570299 • Letter: T
Question
The following entries were made in the books of Saratoga Springs Swimming Pool Fund for the year ended December 31, 2017. 1) Cash 1,200,000 Transfers In 1,200,000 2) Cash 1,000,000 Note Payable 1,000,000 3) Land Building Land Improvements Equipment Supplies 300,000 600,000 400,000 300,000 190,000 Cash 1,790,000 4) Cash 720,000 Operating Revenues-Charges for Services 720,000 5) Operating Expense - Salaries Operating Expense - Utilities Nonoperating Expense- Interest 275,000 140,000 60,000 Cash 475,000 6) Operating Expense - Supplies 120,000 Supplies 120,000 7) Operating Expense - Depreciation 100,000 Accumulated Depreciation-Building Accumulated Depreciation- Land Improvements Accumulated Depreciation-Equipment 30,000 40,000 30,000 8) Operating Revenues-Charges for Services 720,000 1,200,000 Transfers In Operating Expense-Salaries Operating Expense- Utilities Nonoperating Expense-Interest Operating Expense-Supplies Operating Expense- Depreciation Net Position 275,000 140,000 60,000 120,000 100,000 1,225,000 Required: Prepare a Statement of Revenues, Expenses, and Changes in Net Position, in good form, for the City of Saratoga Springs Swimming Pool Fund for the year ended December 31, 2017.Explanation / Answer
Saratoga Springs swimming Pool Fund Statement of Revenues, expenses, and changes in fund
Net position year ended December,31st, 2017
Operating Revenues:
Charges for services
$720,000
Operating Expenses:
Salaries
$275,000
Utilities
140,000
Supplies
120,000
Depreciation
100,000
total operating expenses
635,000
Operating income
85,000
Non-Operating expneses:
Interest
60,000
Income (loss) before transfers
25,000
Transfers in
1,200,000
Changes in net position
1,225,000
Net position on 1/1/2017
0
Net position on 31/12/2017
1,225,000
Saratoga springs Swimming Pool Fund Statement of Fund Net Position December,31st,2017
Assets:
$
$
$
Current Assets:
Cash (1)
$655,000
Supplies (3)
70,000
Total current Assets
725,000
Capital assets:
Land
300,000
Land improvements
400,000
Less: Accumulated depreciation
40,000
360,000
Buildings
600,000
Less: Accumulated depreciation
30,000
570,000
Equipment
300,000
Less: Accumulated depreciation
30,000
270,000
total capital assets
1,500,000
Total assets
2,225,000
Liabilities:
Long term liabilities:
Notes payable
1,000,000
Net position: (2)
Net investment in capital assets
unrestricted
500,000
restricted
725,000
total net position
1,225,000
Working note: 1 Calculation of cash balance:
Cash account
transaction
Dr
$
transaction
Cr
$
transfers in
1,200,000
land
300,000
Notes payable
1000,000
building
600,000
operating revenue services
720,000
land improvements
400,000
equipment
300,000
supplies
190,000
balance c/d
655,000
(2920,000-2265,000)
total
2,920,000
total
2,920,000
Working note :2 Calculation of net position
unrestricted
Calculation of capital assets (net)
1,500,000
Less: related debt (notes)
1,000,000
$ 500,000
Restricted:
total assets
2,225,000
Less: capital assets
1,500,000
net
$725,000
Working note: 3
calculation of supplies balance:
supplies purchases - operating expenses
=
190,000 - 120,000 =
70,000
Operating Revenues:
Charges for services
$720,000
Operating Expenses:
Salaries
$275,000
Utilities
140,000
Supplies
120,000
Depreciation
100,000
total operating expenses
635,000
Operating income
85,000
Non-Operating expneses:
Interest
60,000
Income (loss) before transfers
25,000
Transfers in
1,200,000
Changes in net position
1,225,000
Net position on 1/1/2017
0
Net position on 31/12/2017
1,225,000
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