Complete Question:
The Town of Elizabeth operates the old train station as an enterprise fund. The train station is on the national register of historic buildings. Since the town has held the building for such a long time, the Central Station Fund has no long-term debt. The only capital assets recorded by the Central Station Fund are machinery and equipment. Businesses rent space in the building and the town provides all services related to the operation and maintenance of the building. Following is information related to the fund's 2017 operating activities:
1. Rental income of $94,444 was accrued. Subsequently, cash in the amount of $90,210 was received on accounts.
2. Cash expenses for the period included: administrative services, $25,205; maintenance and repairs, $72,882; supplies and materials, $7,792 and utilities $30,124.
3. The Central Station Fund received a $60,000 transfer of funds from the General Fund.
4. Adjustments were made for depreciation ($3,519) and for uncollectible accounts ($667).
5. At the end of the period, nominal accounts were closed.
Required: (b only)
Prepare a statement of revenues, expenses, and changes in fund net position. The net position balance at the beginning of the period was $60,129.
Answer:
The Central Station Enterprise Fund
Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31, 20XX:
Rental Income $90,210
Expenses:
Administrative services 25,205
Maintenance & Repairs 72,882
Supplies & Material 7,792
Utilities 30,134
Total Expenses $136,193
Excess Expenses (45,983)
Transfer from
General Funds 60,000
Beginning balance 60,129
Ending Balance $74,146
Explanation:
The Central Station Enterprise Fund's statement of revenues, expenses, and changes in fund balances is the governmental funds' income statement. It tracks the inflow and outflow of resources. The statement does not only report revenues and expenses, it also reports inflows and outflows of resources like the transfer of funds received from the General Fund, including the beginning fund balance. Together, these will result to an ending fund balance.
