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 $33,000. Cash Basis 12 months $137,000 63,000 200,000 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 76,400 10,200 7,200 72,000 1,890 167,690 $ 32,310 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 $2,200. 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. No Transaction General Journal Debit Credit 1 1a Cash 137,000 Operating Revenues 137,000 2 1b Cash 63,000 0 Long-term Note Payable 63,000 3 1c 10,200 76,400 Payroll Taxes Expense Wages Expense Insurance Expense Interest Expense Equipment olololololo 7,200 1,890 72,000 Discover - Card Services, Banking & Lo https://www.discover.com Cash 4 02 945 Interest Expense Interest Payable 945 5 03 10,800 Depreciation Expense Accumulated Depreciation 10,800 6 4a 2,200 Payroll Taxes Expense Payroll Taxes Payable 2,200 7 4b 137,000 12,400 Operating Revenues Payroll Taxes Expense Wages Expense Insurance Expense Interest Expense Depreciation Expense Net Position OOOOOOO 76,400 7,200 1,890 X 10,800 28,310 X 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: Charges for Services $ 137,000 137,000 Total Revenues Operating Expenses: Wages Expense Payroll Taxes Expense Insurance Expense Depreciation Expense 76,400 12,400 7,200 10,800 106,800 30,200 Total Operating Expenses Operating Income Nonoperating Income (Expenses): Interest Expense (1,890) Total Nonoperating Income (Expenses) Change in Net Position Net Position - Beginning of Year Net Position - End of Year (1,890) 28,310 33,000 $ 61,310