known as the Kelly Metro Parking Fund, because the activi by pledge of the facility's net revenues from parking fees. This problem during calendar years 2017 and 2018. ty will be financed with debt secured solely covers transactions and events for the following Kelly Metro Parking Fund transactions and events during sold on July a. Prepare journal entries 2017 I. Receives $5.000,000 from the sale of revenue bonds at par. The revenue bonds were 1,2017. They mature at the rate of $250,000 a year over a period of 20 years, starting July 1 2018. Interest on the bonds is payable annually, also starting July 1,2018, at 4 percent per annum on the outstanding debt. 2. Pays $1,000,000 to acquire a vacant lot near the railroad station. 3. Pays $4,000000 to construct the parking lot. The lot is completed and ready for opening as o 4. Accrues interest for 6 months on the serial bonds. [Interest expense is not capitalized.] 5. Receives an invoice for $80,000 from the Village of Kelly General Fund for all expenses in- December 31, 2017 curred in financing and planning for constructing the parking lot. Based on the foregoing transactions and events, the Kelly Metro Parking Fund starts calendar year 2018 with the following trial balance: Debits Credits $1,000,000 4,000,000 Parking lot. Accrued interest payable Due to General Fund Revenue bonds payable. Net position. S 100,000 80,000 5,000,000 180,000 $5,180,000 $5,180,000 b. Prepare journal entries to record the following transactions and events of the Kelly Metro Parking a statement of revenues, expenses, and changes in net Fund for calendar year 2018. Then prepare position for the year and a statement of net position as of December 31, 2018. 1. Receives cash from parking fees in the amount of $800,000. Receives cash of $60.000 in December 2018 from parking lot customers who rent space for the month of January 2019. 3. Pays the amount due at the start of the year to the General Fund. 4. Pays the following expenses: salaries-$125,000; insurance-$20,000; utilities-$35 5. Pays the first installment of principal and interest on the revenue bonds, due July 1, 2 6. Accrues interest on the revenue bonds as of December 31, 2018. 7. Records one ye ,000 018. ar's depreciation on the parking lot. The parking lot has been estimated to have a useful life of 20 years