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. 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.
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. 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.
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. 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.
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 2024, the program had unrestricted cash of $7,000.
Cash Basis 12 months
Cash receipts:
Registration fees
$96,500
Borrowing from bank
75,000
Total deposits
171,500
Cash disbursements:
Wages
44,000
Payroll taxes and employee benefits
9,575
Insurance (paid monthly)
8,000
Purchase of bus
80,000
Interest on bank note
2,250
Total checks
143,825
Excess of receipts over disbursements
$27,675
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, 2024.
The bus was purchased on April 1 with the proceeds provided by the bank loan and has an estimated useful life of eight years (straight-line basis—use monthly depreciation).
All invoices and salaries related to 2024 had been paid by close of business on December 31, except for the employer’s portion of December payroll taxes, totaling $712.
Required:
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.
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.
Transcribed Image Text:B
C
D
E
F
G
1b
1c
02
03
4a
4b
Cash
Long-term Note Payable
Wages Expense
Payroll Taxes and Employee Benefits
Interest Expense
Equipment
Cash
Interest Payable
Interest Payable
Depreciation Expense
Accumulated Depreciation
Payroll Taxes and Employee Benefits
Payroll Taxes Payable
Operating Revenues
Wages Expense
Payroll Taxes and Employee Benefits
Insurance Expense
Accumulated Depreciation
Interest Expense
Net Position
Statement of Revenues, Expenses, and Changes
in Fund Net Position
For the Year Ended December 31, 2024
Revenues:
Charges for Services
Total Revenues
Operating Expenses:
Wages Expense
Payroll Taxes and Employee Benefits
Insurance Expense
Depreciation Expense
Total Operating Expenses
Operating Income
Nonoperating Income (Expenses):
Interest Expense
Change in Net Position
Total Nonoperating Income (Expenses)
Net Position - Beginning of Year
Net Position - End of Year
✓ $
3333
*33
✓
✓
✓
✓
✓
✓
X
x
✓
✓
✓
››
30*3000
x
96,500✔
96,500
44,000
10,287
8,000
833 X
63,120
33,380
2,250 x
31,130 X
33,380
66,760
7,000
$ 73,760
75,000✔
3333
44,000✔
9,575
2,250✔
80,000✓✔
3
1,125✔
833 x
3
712✔
96,500✔
75,000✔
135,825 X
1,125✓
833
712
X
3
10,287 X
44,000 X
8,000✓✔
833 x
2,250 x
31,130 X
Transcribed Image Text:B
C
D
E
F
G
1b
1c
02
03
4a
4b
Cash
Other Financing Sources - Proceeds of Note Payable
Wages Expenditure
Payroll Taxes Expenditure
Interest Expenditure
Cash
Payroll Taxes Payable
Payroll Taxes Expenditure
Operating Revenues
Payroll Taxes Expenditure
Payroll Taxes Expenditure
Payroll Taxes Payable
Operating Revenues
Payroll Taxes Expenditure
Wages Expenditure
Insurance Expenditure
Interest Expenditure
Fund Balance
Revenues:
Charges for Services
Total Revenues
Expenditures:
Current:
Wages Expenditures
Payroll Taxes Expenditures
Insurance Expenditures
debt
outlay
Statement of Revenues, Expenditures, and Changes
in Fund Balance
For the Year Ended December 31, 2024
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources:
Debt Proceeds
Fund Balance, January 1
Fund Balance, December 31
> >
**333
333
✓
X
XX
x
X
33
3 3 3 3 * 3
✓ $ $ 96,500
96,500
144,537
(48,037)
75,000 ✓
44,000✔
10,287✔
8,000
2,250✔
80,000✔
$ 65,926
44,000✔
9,575✔
2,250
80,000✔
75,000
31,963 x
58,926
7,000✔
3
96,500
3
3333
712 X
712✔
3
3
75,000✔
13,825 x
X
712 X
712
3
10,287 x
44,000✔
8,000✔
2,250
31,963 X
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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