For years beginning January 1,2018, the city of Arbor Hills finances its park and recreation activities with a special property tax levy. Accordingly, it will account for resources related to parks and recreation in a special revenue fund. During 2018, it engaged in the following transactions:

1) the fund received $6million from the city special park and recreation property tax levy

2) the employee earned $0.17 million in sick leave but were paid for only $0.14 million. The leave accumulates but does not vest.

3) During 2018, the city ordered $0.80million in parks and recreation supplies. Of this amount,it received $0.70million, used $0.55million, and paid for $0.5million. The city uses the purchases mathod to account for supplies inventory.

4) In January 2018, the city purchased $1million in parks and recreation equipment. It paid. $0.20million in cash and gave an installment note for the balance. The first payment on the note ($0.30 million plus interest of $0.05million)is due on January 12,2019

Required:

A) Prepare a statement of revenue,expenditure and change in fund balance and. Balance sheet for the park and recreation fund as a December 31,2018

B) indicate any assets,liability that would be reported in the citys schedule of capital assets, or long term obligation as a consequence of the transactions engaged in by the park and recreation fund