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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 program's bank account for the year. 1. At the beginning of 2020, the program had unrestricted cash of $18,000. Cash Basis 12 months $100,000 75,000 175,000 Cash receipts: Registration fees Borrowing from bank Total deposits Cash disbursements: Wages Payroll taxes Insurance (paid monthly) Purchase of bus Interest on bank note Total checks Excess of receipts over disbursements 46,575 7,000 8,000 80,000 2,250 143, 825 $ 31,175 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 of each year, beginning October 1, 2020. 3. 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 basis-use monthly depreciation). 4. All invoices and salaries related to 2020 had been paid by close of business on December 31, except for the employer's 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. Complete this question by entering your answers in the tabs below. Req A Entries Req A Net Position Req B Entries Req B Fund Balance Prepare the journal entries including 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 worksheet Record the entry for reve received in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 1a Reg A Entries Req A Net Position Req B Entries Req B Fund Balance Prepare the Statement of Revenues, Expenses, and Changes in Fund Net Position assuming the City intends to treat the summer camp program as an enterprise fund. (Deductions should be entered as a negative amount.) CITY OF EVANSVILLE SUMMER CAMP ENTERPRISE FUND Statement of Revenues, Expenses, and Changes in Fund Net Position For the Year Ended December 31, 2020 Revenues: Total Revenues 0 Operating Expenses: Total Operating Expenses 0 0 Nonoperating Income (Expenses): Total Nonoperating Income (Expenses) 0 0 Net Position - Beginning of Year Net Position - End of Year $ 0 Req A Entries Req A Net Position Req B Entries Req B Fund Balance Prepare the journal entries including 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 worksheet 1 2 3 4 5 6 7 > Record the entry for revenue received in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 1a Record entry Clear entry View general journal Prepare the Statement of Revenues, Expenditures, and Changes in Fund Balance assuming the City intends to treat the summer camp program as a special revenue fund. (Deductions should be entered as a negative amount.) CITY OF EVANSVILLE SUMMER CAMP SPECIAL REVENUE FUND Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended December 31, 2020 Revenues: 0 Total Revenues Expenditures: Current: 0 Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources: 0 0 Fund Balance, January 1 Fund Balance, December 31 $ 0
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