Project: Proprietary Fund

As of July $1,2011,$ the City of Saratoga Springs decided to purchase a privately operated swimming

pool and to create a Swimming Pool $($Enterprise$)$ Fund. During the year, the following transactions

occurred:

$($a$)$ A permanent contribution of $$600,000$ was received from the General Fund.

$($b$)$ Revenue Bonds were sold at par in the amount of $$1,200,000.$

$($c$)$ Purchased for cash several items, the cost breakdown was: land, $$300,000$; building, $$400,000,$ land

improvement, $$400,000$; equipment, $$200,000$; supplies, $$150,000.$

$($d$)$ Charges for services amounted to $$600,000,$ all received in cash.

$($e$)$ Cash expenses included: salaries, $$200,000$; utilities, $$100,000$; interest, $$72,000.$

$($f$)$ Supplies were consumed in the amount of $$120,000.$

$($g$)$ Depreciation was recorded for: building, $$20,000,$ land improvement, $$20,000$; equipment, $$20,000.$

$($h$)$ The books were closed. Close all accounts to Net Assets.

Required:

$1.$ Record the above transactions in general journal form $($on the books of the swimming pool fund$).$

$2.$ Prepare, in good form, a Statement of Revenues, Expenses, and Changes in Fund Net Assets for the

City of Saratoga Springs Swimming Pool Fund for the Year Ended June $30,2012.$

$3.$ Prepare, in good form, a Statement of Fund Net Assets for the City of Saratoga Springs Swimming

Pool Fund as of June $30,2012.$

$4.$ Prepare, in good form, a Statement of Cash Flows for the City of Saratoga Springs Swimming Pool

Fund for the Year Ended June $30,2012.$ Assume all of the revenue bonds payable are for capital$-$

related acquisitions and that the transfer was to establish working capital $($i$.$e$.$ a non$-$capital$-$related

purpose$).$