Question
The City of Evansville operated a summer camp program for at-risk youth. Businesses and nonprofit organizations sponsor one or more youth by paying the registration
The City of Evansville operated a summer camp program for at-risk youth. Businesses and nonprofit organizations sponsor one or more youth by paying the registration fee for program participants. The following Schedule of Cash Receipts and Disbursements summarizes the activity in the programs bank account for the year. At the beginning of 2017, the program had unrestricted cash of $18,000. Cash Basis 12 months Cash receipts: Registration fees $ 125,000 Borrowing from bank 50,000 Total deposits 175,000 Cash disbursements: Wages 66,575 Payroll taxes 9,000 Insurance (paid monthly) 6,000 Purchase of bus 60,000 Interest on bank note 1,500 Total checks 143,075 Excess of receipts over disbursements $ 31,925 The loan from the bank is dated April 1 and is for a five-year period. Interest (6 percent annual rate) is paid on October 1 and April 1 of each year, beginning October 1, 2017. The bus was purchased on April 1 with the proceeds provided by the bank loan and has an estimated useful life of five years (straight-line basisuse monthly depreciation). All invoices and salaries related to 2017 had been paid by close of business on December 31, except for the employers portion of December payroll taxes, totaling $800. Required: a. Prepare the journal entries, closing entries, and a Statement of Revenues, Expenses, and Changes in Fund Net Position assuming the City intends to treat the summer camp program as an enterprise fund. b. Prepare the journal entries, closing entries, and a Statement of Revenues, Expenditures, and Changes in Fund Balance assuming the City intends to treat the summer camp program as a special revenue fund.
The City of Evansville operated a summer camp program for at-risk youth. Businesses and nonprofit organizations sponsor one or more youth by paying the registration fee for program participants. The following Schedule of Cash Recelpts and Disbursements summarizes the activity In the program's bank account for the year. 1. At the beginning of 2017, the program had unrestricted cash of $18,000 ash Basis 12 months Cash receipts Registration fees Borrowing from bank $125,90e 58,8e8 175,888 Total deposits Cash disbursements: Wages Payroll taxes Insurance (paid monthly) Purchase of bus Interest on bank note 66,575 9,880 6,808 68,808 1,588 143,875 31,925 Total checks Excess of receipts over disbursements 2. The loan from the bank is dated April 1 and is for a five-year period. Interest (6 percent annual rate) Is paid on October 1 and April 1 3. The bus was purchased on April 1 with the proceeds provided by the bank loan and has an estlmated useful life of five years 4. All Involices and salaries related to 2017 had been pald by close of business on December 31, except for the employer's portion of of each year, beginning October 1, 2017 stralght-line basis-use monthly depreciation). December payroll taxes, totaling $800. Required a. Prepare the Journal entries, closing entrles, and a Statement of Revenues, Expenses, and Changes In Fund Net Posltion assuming the City Intends to treat the summer camp program as an enterprise fund. b. Prepare the Journal entries, closing entries, and a Statement of Revenues, Expenditures, and Changes In Fund Balance assuming the City Intends to treat the summer camp program as a special revenue fund. Complete this question by entering your answers in the tabs below Req A Net Position Req B EntriesBalance Req B Fund Prepare the journal entries, closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheetStep by Step Solution
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