12 The following information has been provided by the City of Edward for its most recent December 31 fiscal year-end. The information provided relates to financial information needed to reconcile the net change in governmental fund balances to the change in net position of governmental activities. Net change in total governmental fund balances Change in net position of governmental activities Capital outlay reported as expenditures Principal payment on long-term debt Depreciation expense Accrued expenses that do not require use of current financial resources Revenues that do not provide current financial resources Required Prepare reconciliation of the net change in governmental fund balances to the change in net position of governmental activities for the City of Edward. (Decreases should be indicated with a minus sign.) CITY OF EDWARD Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds to the Statement of Activities For the Year Ended December 31, 2023 Net change in fund balances-governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. Some revenues reported in the statement of activities do not provide current financial resources and are not reported as revenues in governmental funds. $ 335,791 1,069,577 640,576 113,000 50,059 5,850 36,119 Debt payments use financial resources of governmental funds, but decrease long-term liabilities in the statement of net position. Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Change in net position of governmental activities
12 The following information has been provided by the City of Edward for its most recent December 31 fiscal year-end. The information provided relates to financial information needed to reconcile the net change in governmental fund balances to the change in net position of governmental activities. Net change in total governmental fund balances Change in net position of governmental activities Capital outlay reported as expenditures Principal payment on long-term debt Depreciation expense Accrued expenses that do not require use of current financial resources Revenues that do not provide current financial resources Required Prepare reconciliation of the net change in governmental fund balances to the change in net position of governmental activities for the City of Edward. (Decreases should be indicated with a minus sign.) CITY OF EDWARD Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds to the Statement of Activities For the Year Ended December 31, 2023 Net change in fund balances-governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. Some revenues reported in the statement of activities do not provide current financial resources and are not reported as revenues in governmental funds. $ 335,791 1,069,577 640,576 113,000 50,059 5,850 36,119 Debt payments use financial resources of governmental funds, but decrease long-term liabilities in the statement of net position. Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Change in net position of governmental activities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:12
The following information has been provided by the City of Edward for its most recent December 31 fiscal year-end. The information
provided relates to financial information needed to reconcile the net change in governmental fund balances to the change in net
position of governmental activities.
Net change in total governmental fund balances
Change in net position of governmental activities
Capital outlay reported as expenditures
Principal payment on long-term debt
Depreciation expense
Accrued expenses that do not require use of current financial resources
Revenues that do not provide current financial resources
Required
Prepare reconciliation of the net change in governmental fund balances to the change in net position of governmental activities for the
City of Edward. (Decreases should be indicated with a minus sign.)
CITY OF EDWARD
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental
Funds to the Statement of Activities
For the Year Ended December 31, 2023
Net change in fund balances-governmental funds
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities,
the cost of those assets is allocated over their estimated useful lives as depreciation expense.
Some revenues reported in the statement of activities do not provide current financial resources and
are not reported as revenues in governmental funds.
$ 335,791
1,069,577
640,576
113,000
50,059
5,850
36,119
Debt payments use financial resources of governmental funds, but decrease long-term liabilities in
the statement of net position.
Some expenses reported in the statement of activities do not require the use of current financial
resources and therefore are not reported as expenditures in governmental funds.
Change in net position of governmental activities
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