The following Statement of Cash Receipts and Disbursements was prepared by the b
ID: 2556922 • Letter: T
Question
The following Statement of Cash Receipts and Disbursements was prepared by the bookkeeper of the Phillips County Recreation Center, an enterprise fund. It began operations on January 1, 2018 with no outstanding liabilities or commitments and only 2 assets
(1) $7,000 cash and (2) land that it had paid $ 12,000 to acquire.
Cash Basis
12 months
Cash Receipts:
Admission fees
147,500
Borrowing from bank
55,000
Total deposits
202,500
Cash Disbursements:
Supplies
23,300
Labor
122,100
Utilities
6,000
Purchase of machinery
50,000
Interest on bank note
2,200
Total checks
203,600
Excess of Receipts over Disbursements:
(1,100)
The loan from the bank is dated April 1 and is for a five-year period.Interest (8% annual rate) is paid on Oct. 1 and April 1 of each year, beginning October 1, 2018.
The machinery was purchased on April 1 with the proceeds provided by the bank loan and has an estimated useful life of 10 years. (straight-line basis)
Supplies on hand amounted to $ 3,760 at December 31, 2018.These included $500 of cleaning supplies that were received on December 29 and paid in January 2019. All other bills and salaries related to 2018 had been paid by close of business on December 31, 2018
Required:
Prepare a Statement of Revenues, Expenses and Changes in Net Assets for the year ended December 31, 2018 for the Recreation Center enterprise fund.
Cash Basis
12 months
Cash Receipts:
Admission fees
147,500
Borrowing from bank
55,000
Total deposits
202,500
Cash Disbursements:
Supplies
23,300
Labor
122,100
Utilities
6,000
Purchase of machinery
50,000
Interest on bank note
2,200
Total checks
203,600
Excess of Receipts over Disbursements:
(1,100)
Explanation / Answer
Statement of Revenues, Expenses, and Changes in Net Assets Philips Country Recreation Centre For the year ended December 31, 2012 Particulars Amount ($) Amount ($) Operating Revenues: Charges for services 147500 Operating Expenses: Wages 122100 Supplies (23300-3760+500) 20,040 Utilities 6,000 Depreciation on MAchinery (50,000/10 *9/12) 3,750 Total operating expenses 151890 Operating Income or loss -4,390 Non operating expenses Interest (2200+ 55,000*8%*3/12) -3,300 Change in Net assets -7,690 Net assets as on Jan 1 , 2012 ($6000+$11000) 17,000 Net assets as on Dec 31 , 2012 9,310