721 Central Station Enterprise Fund. The Town of Elizabeth operates the old

train station as an enterprise fund. The train station is on the national register

of historic buildings. Since the town has held the building for such a long

time, the Central Station Fund has no long-term debt. The only capital assets

recorded by the Central Station Fund are machinery and equipment. Busi-

nesses rent space in the building and the town provides all services related to

the operation and maintenance of the building. Following is information re-

lated to the funds 2017 operating activities.

1. Rental income of $94,444 was accrued. Subsequently, cash in the amount of

$90,210 was received on accounts.

2. Cash expenses for the period included: administrative services, $25,205;

maintenance and repairs, $72,882; supplies and materials, $7,792; and utili-

ties, $30,124.

3. The Central Station Fund received a $60,000 transfer of funds from the

General Fund.

4. Adjustments were made for depreciation ($3,519) and for uncollectible

accounts ($667).

5. At the end of the period, nominal accounts were closed.

Required

a. Prepare general journal entries to record the Central Station Funds operating

activities for the year.

b. Prepare a statement of revenues, expenses, and changes in fund net position.

The net position balance at the beginning of the period was $60,129.

c. Based on the information provided, does it appear that the Central Station

Fund is required to be recognized as an enterprise fund under GASB

standards? Explain your answer.

d. Assuming you are the towns manager, discuss your concerns about the

Central Station Fund.