The following Statement of Cash Receipts and Disbursements was prepared by the bookkeeper of The Anchorage Arboretum Authority. The Arboretum Authority is a component unit of the City of Anchorage and must be included in the City's financial statements. It began operations on January 1, 2017 with no outstanding liabilities or commitments and only 2 assets: (1) $15,000 cash and (2) land that it had paid $23,000 to acquire. Cash Basis 12 months Cash Receipts: Admission fees -- 375,200 Borrowing from bank -- 80,00 Total deposits -- 455,200 Cash Disbursements: Supplies -- 57,300 Labor -- 229,700 Utilities -- 54,700 Purchase of machinery -- 90,0
5. The following Statement of Cash Receipts and Disbursements was prepared by the bookkeeper of The Anchorage Arboretum Authority. The Arboretum Authority is a component unit of the City of Anchorage and must be included in the City's financial statements. It began operations on January 1, 2017 with no outstanding liabilities or commitments and only 2 assets: (1) $15,000 cash and (2) land that it had paid $23,000 to acquire.
Cash Basis
12 months
Cash Receipts:
Admission fees -- 375,200
Borrowing from bank -- 80,00
Total deposits -- 455,200
Cash Disbursements:
Supplies -- 57,300
Labor -- 229,700
Utilities -- 54,700
Purchase of machinery -- 90,000
Interest on bank note -- 1,600
Total checks -- 433,300
Excess of Receipts over Disbursements: 21,900
- The loan from the bank is dated April 1 and is for a five year period. Interest (4% annual rate) is paid on Oct. 1 and April 1 of each year, beginning October 1, 2017.
- The machinery was purchased on April 1 with the proceeds provided by the bank loan and has an estimated useful life of 10 years. (straight-line basis)
- Supplies on hand amounted to $ 3,760 at December 31, 2017. These included $650 of fertilizer that was received on December 29 and paid in January 2017. All other bills and salaries related to 2017 had been paid by close of business on December 31.
Required:
(1) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ended December 31, 2018 for the Arboretum assuming the City plans to account for its activities using the accrual basis.
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