entry 7. Include restricted assets as cash and cash equivale! 6-7. The City of Sandwich purchased a swimming pool from a private operator as of April 1, 2020, 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, 2021. The City has a calendar year as its fiscal year. During the year ended December 31, 2020, the following transactions occurred related to the City of Sandwich Swimming Pool: 1. The amounts were received from the City General Fund and the First National Bank. 2. A loan was provided in the amount of $125,000 from the Water Utility Fund to provide working capital. 3. 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. 4. Charges to patrons during the season amounted to $242,000, all received in cash. 5. 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. 6. 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. 7. Administrative expenses amounted to $16,500, paid in cash. 8. The first interest payment was made to the First National Bank. 9. The short-term loan was repaid to the Water Utility Fund. 10. Depreciation of $18,500 for the pool and $6,000 on the building was recorded for the nine months they were in operation. 11. Interest was accrued for the year. 12. Closing entries were prepared. page 172 Required: a. Prepare entries to record the transactions. b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31, 2020, for the City of Sandwich Swimming Pool Fund. c. Prepare a Statement of Net Position as of December 31, 2020, for the City of Sandwich Swimming Pool Fund. d. Prepare a Statement of Cash Flows for the year ended December 31, 2020, for the City of Sandwich Swimming Pool Fund. ACCOUNT TITLE 1 CASH 2 CASH 31 TRANSFERS IN NOTES PAYABLE DUE TO WATER UTILITY FUND LAND IMPROVEMENTS OTHER THAN BUILDINGS BUILDINGS CASH CASH OPERATING REVENUES OPERATING EXPENSES-COSTS OF SERVICES OPERATING EXPENSES-ADMINISTRATION SUPPLIES INVENTORY CASH CASH DEBITS CREDITS 7 OPERATING EXPENSES-COSTS OF SERVICES SUPPLIES INVENTORY OPERATING EXPENSES ADMINISTRATION CASH 8 NONOPERATING EXPENSES-INTEREST CASH 9 DUE TO WATER UTILITY FUND CASIE 10 OPERATING EXPENSES DEPRECIATION ACC DEPRECIATION IMPROVEMENTS ACCUMULATED DEPRECIATION BUILDINGS CLOSE NONOPERATING EXPENSES INTEREST ACCRUED INTEREST PAYABLE TRANSFERS IN OPERATING REVENUES CHARGES FOR SERVICES COSTS OF SALES AND SERVICES OPERATING EXPENSES ADMINISTRATION OPERATING EXPENSES DEPRECIATION NONOPERATING EXPENSES INTEREST NET POSITION 6-7 (B). CITY OF SANDWICH SWIMMING POOL FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION YEAR ENDED DECEMBER 31, 2020 REVENUES CHARGES FOR SERVICES TOTAL REVENUES OPERATING EXPENSES COST OF SALES AND SERVICES DEPRECIATION EXPENSE ADMINISTRATIVE EXPENSES TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATING INCOME (EXPENSES) INTEREST EXPENSE TOTAL NONOPERATING REVENUE TRANSFER FROM GENERAL FUND CHANGE IN NET POSITION NET POSITION BEGINNING OF YEAR NET POSITION END OF YEAR CITY OF SANDWICH SWIMMING POOL FUND STATEMENT OF NET POSITION DECEMBER 31, 2020 ASSETS CASH SUPPLIES INVENTORY TOTAL CURRENT ASSETS CAPITAL ASSETS LESS ACCUMULATED DEPRECIATION TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES ACCRUED INTEREST PAYABLE TOTAL CURRENT LIABILITIES NOTE PAYABLE TOTAL LIABILITIES NET POSITION NET INVESTMENT IN CAPITAL ASSETS RESTRICTED UNRESTRICTED TOTAL NET POSITION TOTAL LIABILITIES AND NET POSITION CITY OF SANDWICH SWIMMING POOL FUND STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2020 CASH FLOWS FROM OPERATING ACTIVITIES CASH RECEIVED FROM CUSTOMERS CASH PAID FOR SALARIES CASH PAID TO SUPPLIES AND ADMINISTRATION NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES SHORT TERM LOAN FROM WATER UTILITY FUND REPAYMENT OF LOAN TO WATER UTILITY FUND NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES ACQUISITION OF CAPITAL ASSETS LOAN FROM BANK EQUITY TRANSFER FROM GENERAL FUND INTEREST PAID ON LONG-TERM DEBT NET CASI PROVIDED FROM CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES NET CASH PROVIDED FROM INVESTING ACTIVITIES INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CAME EQUIVALENTS BEGINNING OF YEAR CASH AND CASIL EQUIVALENTS END OF YEAR 28 Words RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES OPERATING INCOME DEPRECIATION (INCREASE) DECREASE IN SUPPLIES INVENTORY NET CASH PROVIDED BY OPERATING ACTIVITIES