Section 2: Journal Entries (20 points) As of July 1, 2016, the City of Saratoga Springs decided to purchase a privately operated swimming pool and to create a swimming pool fund. During the year, the following transactions occurred: (a) $1,000,000 was borrowed with a note payable from a local bank at an interest rate of 6%, (b) Purchased the following items in cash: a. Land b. Building e. Land improvements $400,000 d. Equipment e. Supplies $300,000 $400,000 $200,000 $190,000 (c) Charges for services amounted to $600,000, all received in cash. (d) Depreciation was recorded for the followings in the amounts specified below a. Building b. Land improvements$40,000 c. Equipment $20,000 S20,000 1. In what fund does this need to be accounted for? (Name the fund.) (4 points) When converted to government wide financial statements, in which column should this fund be included? (4 points) Journal entries ( points each) Solution SOLUTION:DebitCredit1Cash100,000Note payable100,0002Land300,000Building400,000Land Improvement400,000Equipment200,000Supplies190,000Cash1,490,0003Cash600,000Operating revenue- charge for services600,0004Operating expense-Depreciation80,000Accumulated depreciation - Building20,000Accumulated depreciation - Land Improvement40,000Accumulated depreciation - Equipment20,000.