The City of Sandstorm purchased a swimming pool from a private operator as of April 1, 2020, for $600,000, of which $300,000 was provided by a one-time contribution from the General Fund, and $300,000 was provided by a loan from the Great National Bank, secured by a note.

During the year ended December 31, 2020, the following transactions occurred related to the City of Sandstorm Swimming Pool:

1.The amounts were received from the City General Fund and the Great National Bank.

2.A loan was provided in the amount of $130,000 from the Water Utility Fund to provide working capital.

3.The purchase of the pool was recorded. Based on an appraisal, it was decided to allocate $150,000 to the land, $210,000 to improvements other than buildings (the pool), and $90,000 to the building.

4.Charges to patrons during the season amounted to $238,000, all received in cash.

5.Salaries paid to employees amounted to $120,000, all paid in cash, of which $90,000 was cost of services and $30,000 was administration.

6.Supplies purchased amounted to $40,000; all but$5,000was used. Cash was paid for the supplies, all of which was for cost of sales and services.

7.Administrative expenses amounted to $18,500, paid in cash.

8.The first interest payment was made to the Great National Bank.

9.The short-term loan was repaid to the Water Utility Fund.

10.Depreciation of $21,500 for the pool and $7,000 on the building was recorded for the nine months they were in operation.

11.Interest was accrued for the year.

12.Closing entries were prepared.

Required:

a.Prepare entries to record the transactions.

b.Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31, 2020, for the City of Sandstorm Swimming Pool Fund.