(TCO F) The following Statement of Cash Receipts and Disbursements was prepared by the bookkeeper of the City of Brookdale City Museum of Science.

(TCO F) The following Statement of Cash Receipts and Disbursements was prepared by the bookkeeper of the City of Brookdale City Museum of Science. The museum is a component unit of the City of Glass City and must be included in the city’s financial statements. It began operations on January 1, 2012 with no liabilities or commitments and only two assets.

(1) $8,000 in cash and (2) Land that was acquired for $10,000.

                                                                    Cash Basis

12 months

Cash Receipts:

  Admission Fees                                                  $330,000

  Loan from the Bank                                                 60,000

  Cash dividends received from stock investment           3,500

    Total deposits                                                   $393,500

Cash Disbursements:

   Supplies                                                              $74,000

   Wages                                                                134,000

   Utilities                                                                 51,000

   Purchase of Equipment                                          80,000

   Purchase of Fixtures                                              40,000                                   

   Interest on the Bank Loan                                        1,200

     Total checks                                                     $380,200

Excess of Receipts Over Disbursements                   $13,300

Additional Information:

• The loan from the bank is dated April 1 and is for a five-year period. Interest (4% annual rate) is paid on Oct. 1 and April 1 of each year, beginning Oct. 1, 2012.

• The equipment was purchased on April 1, 2012 with the proceeds provided by the bank loan and has an estimated useful life of 10 years (please use the straight-line method of depreciation) for computing depreciation on the equipment. The fixtures were purchased on July 1, 2012 and has an estimated useful life of five years (please use the straight-line method of depreciation) for computing depreciation on the fixtures.

• Supplies on-hand amounted to $6,200 at December 31, 2012.

• All other bills and salaries related to 2012 had been paid by the close of business on December 31.

Required:

Please prepare a Statement of Revenues, Expenses, and Changes in Net Assets for the year ended December 31, 2012 assuming the city plans to account for its activities on the accrual basis.(Points : 40)