The City of Sandwich Enterprise Fund The City of Sandwich purchased a swimming pool from a private operator as of April 1, 2017, for $400,000, of which $200,000 was provided by a one-time contribution from the General Fund, and $200,000 was 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 $100,000 are to be made annually, beginning on April 1, 2018. The city has a calendar year as its fiscal year. During the year ended December 31, 2017, the following transactions occurred related to the City of Sandwich Swimming Pool: 1. 2. 3. 4. 45 5. The amounts were received from the City General Fund and the First National Bank. A loan was provided in the amount of $130,000 from the Water Utility Fund to provide working capital. The purchase of the pool was recorded. Based on an appraisal, it was decided to allocate $100,000 to the land, $200,000 to improvements other than buildings (the pool), and $100,000 to the building. Charges to patrons during the season amounted to $260,000, all received in cash. Salaries paid to employees amounted to $115,000, all paid in cash, of which $75,000 was cost of services and $40,000 was administration. 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 services. Administrative expenses amounted to $11,000. paid in cash. The first interest payment was made to the First National Bank. 6. 7. 8. 9. The short-term loan was repaid to the Water Utility Fund. 10. 11. 12. Depreciation of $22,500 for the pool and $7,500 on the building was recorded for the 9 months they were in operation. Interest was accrued for the year. Closing entries were prepared. Required: a. b. C. d. Prepare entries to record the transactions. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31, 2017, for the City of Sandwich Swimming Pool Fund. Prepare a Statement of Net Position as of December 31, 2017, for the City of Sandwich Swimming Pool Fund. Prepare a Statement of Cash Flows for the year ended December 31, 2017, for the City of Sandwich Swimming Pool Fund.