Journal entries and financial statements for an Enterprise Fund The Metro Central Railroad is a commuter railroad that stops at the Village of Kelly. Kelly, a growing community, decides to construct and operate a parking lot near the railroad station to accommodate the needs of its citizens. The activities of the parking lot will be accounted for in an Enterprise Fund, known as the Kelly Metro Parking Fund, because the activity will be financed with debt secured solely by pledge of the facility's net revenues from parking fees. The following transactions and events occurred in 2020: 1. Receives $6,250,000 from the sale of revenue bonds at par. The revenue bonds were sold on July 1, 2020. They mature at the rate of $312,500 a year over a period of 20 years, starting July 1, 2021. Interest on the bonds is payable annually, also starting July 1, 2021, at 4 percent per annum on the outstanding debt. 2. Pays $1,250,000 to acquire a vacant lot near the railroad station. 3. Pays $5,000,000 to construct the parking lot. The lot is completed and ready for opening as of December 31, 2020. 4. Accrues interest for 6 months on the serial bonds. [Interest expense is not capitalized.] 5. Receives an invoice for $100,000 from the Village of Kelly General Fund for all expenses incurred in financing and planning for constructing the parking lot. Based on the foregoing transactions and events, the Kelly Metro Parking Fund starts calendar year 2021 with the following trial balance: Metro Central Railroad Trial Balance December 31, 2020 Debit Credit Land $1,250,000 Parking lot 5,000,000 Accrued interest payable $125,000 Due to General Fund 100,000 Revenue bonds payable 6,250,000 Net position 225,000 0 Totals $6,475,000 $6,475,000 The following transactions occurred in 2021: 1. Receives cash from parking fees in the amount of $1,000,000. 2. Receives cash of $75,000 in December 2021 from parking lot customers who paid in advance for parking space for the month of January 2022. 3. Pays the amount due at the start of the year to the General Fund. 4. Pays the following expenses: salaries $156,250; insurance- $25,000; utilities, $43,750. 5. Pays the first installment of principal and interest on the revenue bonds, due July 1, 2021. 6. Accrues interest on the revenue bonds as of December 31, 2021. 7. Records one year's depreciation on the parking lot. The parking lot has been estimated to have a useful life of 20 years. c) Prepare a statement of revenues, expenses, and changes in net position for 2021. Enter operating expenses in order of magnitude (largest to smallest amounts). Village of Kelly Kelly Metro Parking Enterprise Fund Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended December 31, 2021 Revenues: . $ 0 Operating expenses: $$ 0 0 0 0 0 0 Total operating expenses Operating income Nonoperating expenses: 0 > . 0 0 Change in net position Net position at beginning of year Net position at end of year 0 $ LA 0 d) Prepare a statement of net position as of December 31, 2021. Village of Kelly Kelly Metro Parking Enterprise Fund Statement of Net Position December 31, 2021 Assets Current assets: $ Noncurrent assets: $ 0 Parking lot 0 250,000 Total assets Liabilities Current liabilities: 0 $ 0 > 0 0 > 0 Accrued interest payable 0 312,500 $ 0 Noncurrent liabilities: Long term portion of revenue bonds payable Total liabilities Net Position 0 0 > 0 0 0 Unrestricted net position Total net position $ LA 0