Reference no: EM132676687

As of July 1, 2017, the Village of Boiling Springs decided to purchase a privately operated swimming pool and to create swimming pool (enterprise) fund. During the year, the following transactions occurred:

• A permanent contribution of $600,000 was received from the general fund.
• Revenue bonds were sold at par in the amount of $1,200,000.
• Several items were purchased for cash, with a cost breakdown as follows: land, $300,000; building, $400,000, land improvement, $400,000; equipment, $200,000; and supplies, $150,000.
• Charges for services amounted to $600,000, all received in cash.
• Cash expenses included salaries of $200,000; utilities of $100,000; and interest of $72,000.
• Supplies were consumed in the amount of $120,000.
• Depreciation was recorded as follows: building, $20,000, land improvement, $20,000; and equipment, $20,000.
• The books were closed. Close all accounts to net position.

Required:

Problem 1: Prepare, in good form using the template and trial balance provided in this module, a Statement of Revenues, Expenses, and Changes in Fund Net Position for the Village of Boiling Spring Swimming Pool Fund for the Year Ended June 30, 2018.

Problem 2: Prepare, in good form using the template and trial balance provided in this module, a Statement of Fund Net Position for the Village of Boiling Springs Swimming Pool Fund as of June 30, 2018.