Question

The City of Breukelen maintains a rapid transit system, which is accounted for in a proprietary fund called Breukelen RTS. Based on the following excerpt from the trial balance, prepare a statement of revenues, expenses, and changes in net position for the Breukelen RTS for the year ended December 31, 2019, using the appropriate format.
Revenues from fares $3,150,000
Train operating expenses 2,430,000
Track and train maintenance expenses 565,000
Depreciation 325,000
Investment income 50,000
Interest expense on long-term debt 320,000
Cash subsidy from the City of Breukelen 500,000
Net position, January 1, 2019 7,430,000

Answer 1

Answer:

                               The City of Breukelen

                                     Breukelen RTS

      Statement of revenues, expenses, and changes in net position

                    For the year ended December 31, 2019

Particulars                                           Amount$         Amount$

Revenues

Operating Revenue                                                    3,150,000

Operating Expenses

Train operating expenses                     2,430,000

Track and maintenance expenses        565,000

Depreciation expenses                          325,000

Total operating expenses                                          3,320,000

Operating loss                                                             (170,000)

Non-Operating revenue (Expenses)

Investment income                                   50,000

Interest expenses                                     320,000

Total Non-operating (expenses)                                 (270,000)

Loss before transfer                                                     (440,000)

Transfer from City of B                                                  500,000

Change in net assets                                                     60,000

Total net position (beginning)                                       7,430,000

Total net position (ending)                                           7,490,000