Simmons Design and Construction, Inc. (Simmons) has been awarded the contract to develop the golf course. Construction will commence February 15, 2021, and be completed no later than May 31, so it can open for business during June. The contract stipulates that progress billings from Simmons will be paid within 30 days of receipt, with 5 percent retainage held pending completion and acceptance of the project. The city engineer will inspect the contractor's work and approve progress payments. Accounting for the GEF will be done by the city's existing accounting department (a General Fund department), which will bill the GEF for services rendered at the end of the year. To help the GEF get on its feet financially, no interfund payables will be settled in cash during 2021. The following events and transactions occurred during the year ended December 31,2021: January 3, 2021: Whitt Falls formally established the GEF; the fund's first transaction was the receipt, in cash, of the capital contribution from the General Fund. January 24: The city acquired the adjacent parcel of land from the private owner for the planned $500,000. February 1: The revenue bonds were sold at par ( $3,000,000). February 15: Development of the golf course itself and construction of the clubhouse commenced. March 31: Simmons submitted the first progress billing of $1,800,000. The billing was approved and set up as a construction contracts payable after deducting the 5 percent retainage. (Because of the short duration of the construction period, no construction in progress accounts will be used.) $400,000 of the amount billed represents the cost of sod, sprinklers, landscaping, and fencing (which the city no construction in progress accounts will be used.) $400,000 of the amount billed represents the cost of sod, sprinklers, landscaping, and fencing (which the city classifies as "improvements other than buildings"). The balance applies to the cost of the clubhouse ("buildings"). April 25: The construction contracts payable currently due Simmons was paid. April 30: The second progress billing from Simmons, $1,500,000, was approved and set up as a construction contracts payable after deducting the 5 percent retainage; $600,000 applies to sod, sprinklers, landscaping, and fencing (which is now fully installed) with the remainder to the clubhouse building. May 19: The construction contracts payable currently due Simmons was paid. May 23: Simmons' third and final progress billing, $700,000 (all of which represents clubhouse construction costs), was approved and set up as a construction contracts payable after deducting the 5 percent retainage. May 30: The construction contracts payable currently due Simmons was paid. June 1: The new golf course was formally accepted by the City (without need for "touch-up work), and all remaining amounts due to Simmons were paid. June 1: The City acquired golf course maintenance equipment by entering into a 4-year lease. The first lease payment of $50,000 was paid on June 2 when the equipment was delivered. The remaining lease payments of $50,000 each will occur on the first, second, and third anniversary of the first payment. Assume that the interest rate on the lease is 4 percent. June 2: Inventory in the amount of $12,000 was acquired for the pro shop; the purchase created an accounts payable. June 4: The course opened for business. Greens fees (charges for services) aggregated $209,000 for June. Pro shop sales amounted to $5.000. All revenues were collected. June 30: Expenses for June were as follows. (Charge all expenses to "Operating expenses-cost of sales.") Maintenance and pro shop labor (paid in cash) - $48,000 Maintenance supplies, from the Parks Department-Special Revenue Fund - $4,000 (The invoice was received, but not paid.) Water, supplied by the Whitt Falls water utility-an Enterprise Fund - $80,000 (The invoice was received, but not paid.) Cost of merchandise sold by the pro shop - $2,200 August 1: The first debt service payment on the revenue bonds was made. December 31: Greens fee revenues for the second half of 2021 totaled $370,000; pro shop sales for the same period were $21,200. December 31: Second-half 2021 expenses were as follows: Maintenance and pro shop labor (paid in cash) - $70,000 Maintenance supplies, from the Parks DepartmentSpecial Revenue Fund - $4,000 (The invoice was received, but not paid.) Water, supplied by the Whitt Falls water utilityan Enterprise Fund - $80,000 (The invoice was received, but not paid.) Cost of merchandise sold by the pro shop - $2,900 Accounting and administrative services provided by the accounting department, General Fund $9,000. (The invoice was received, but not paid.) December 31: Interest was accrued on the revenue bonds. December 31: The GEF recorded depreciation of for the year of $35,000 on the building and $25,000 on building improvements. December 31: The GEF recorded amortization on the intangible asset lease of $23,594 December 31: A Restricted Cash account was established in accordance with the requirements of the bond covenant. b) Prepare the year-end closing entry for the Golf Enterprise Fund. If an entry affects more than one debit or credit account, enter the accounts in order of magnitude (largest to smallest balances), debits first. If two accounts have the same balance, enter in alphabetic order. Debit Credit 50000 0 Account Lease payable Intangible asset - Lease Accounts payable 0 50000 50000 0 0 50000 50000 0 50000 0 oooo 0 0 To close operating accounts at end of 2021. 1 d) Prepare the statement of revenues, expenses, and changes in fund net position for the Golf Course Enterprise Fund for the year ended December 31, 2021. Enter revenues and operating expenses in order of magnitude (largest to smallest amounts). City of Whitt Falls Golf Course Enterprise Fund Statement of Fund Revenues, Expenses, and Changes in Net Position For the Year Ended December 31, 2021 Operating revenues: Greens fee revenues 579000 Pro shop sales revenues 26200 Total operating revenue $ 605200 Operating expenses: Cost of sales and services 291100 Depreciation expense 60000 Lease amortization expense 23594 Administration expenses 9000 Total operating expenses 473694 Operating income 131506 Nonoperating expense: 0 Income before transfer from General Fund 0 0 > > 0 0 Net position, January 1, 2021 Net position, December 31, 2021 $ 0 C) Prepare the statement of net position for the Golf Enterprise Fund at December 31, 2021. Enter contra account amounts as negative numbers. City of Whitt Falls Statement of Net Position Golf Course Enterprise Fund Statement of Net Position December 31, 2021 Assets Current assets: Cash $ 0 . 0 $ 0 Total current assets Restricted cash Capital assets: 300,000 500.000 0 Buildings Improvements other than buildings 0 . 0 0 Net capital assets Intangible assets: 0 -23.594 0 0 Net intangible assets Total assets Liabilities Current liabilities: 12.000 Due to Water Utilities Enterprise Fund Due to General Fund Due to Parks Special Revenue Fund . Total current liabilities Noncurrent liabilities O O O O 0 0 0 3,000,000 0 0 Total noncurrent liabilities Total liabilities Net position Net investment in capital assets Restricted for debt service Unrestricted 0 300,000 0 Total net position $ 0