Assume that the City of Coyote has produced its financial statements for December 31, 2024, and the year then ended. The city's general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these functions at times during the current year. The city also maintained an enterprise fund to account for its art museum. The government-wide financial statements provide the following figures: • Education reports net expenses of $600,000 • Parks reports net expenses of $100,000. • Art museum reports net revenues of $50,000. • General government revenues for the year were $800,000 with an overall increase in the city's net position of $150,000. The fund financial statements provide the following for the entire year: • The general fund reports a $30,000 increase in its fund balance. • The capital projects fund reports a $40,000 increase in its fund balance. • The enterprise fund reports a $60,000 increase in its net position. The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2024 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent. During 2024, the City of Coyote received $10,000, which was recorded as a general revenue in the general fund. It was actually a program revenue earned by the city's park program. Required: a. What was the correct overall change for 2024 in the net position reported on the government-wide financial statements? b. In the general information, the parks program reported net expenses for the period of $100,000. What was the correct amount of net expenses that should have been reported by the parks program? Increase or Decrease Increase a. Correct change b. Correct amount of net expenses 10,000 $ 90,000
Assume that the City of Coyote has produced its financial statements for December 31, 2024, and the year then ended. The city's general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these functions at times during the current year. The city also maintained an enterprise fund to account for its art museum. The government-wide financial statements provide the following figures: • Education reports net expenses of $600,000 • Parks reports net expenses of $100,000. • Art museum reports net revenues of $50,000. • General government revenues for the year were $800,000 with an overall increase in the city's net position of $150,000. The fund financial statements provide the following for the entire year: • The general fund reports a $30,000 increase in its fund balance. • The capital projects fund reports a $40,000 increase in its fund balance. • The enterprise fund reports a $60,000 increase in its net position. The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2024 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent. During 2024, the City of Coyote received $10,000, which was recorded as a general revenue in the general fund. It was actually a program revenue earned by the city's park program. Required: a. What was the correct overall change for 2024 in the net position reported on the government-wide financial statements? b. In the general information, the parks program reported net expenses for the period of $100,000. What was the correct amount of net expenses that should have been reported by the parks program? Increase or Decrease Increase a. Correct change b. Correct amount of net expenses 10,000 $ 90,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume that the City of Coyote has produced its financial statements for December 31, 2024, and the year then ended. The city's
general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these
functions at times during the current year. The city also maintained an enterprise fund to account for its art museum.
The government-wide financial statements provide the following figures:
• Education reports net expenses of $600,000
• Parks reports net expenses of $100,000.
• Art museum reports net revenues of $50,000.
• General government revenues for the year were $800,000 with an overall increase in the city's net position of $150,000.
The fund financial statements provide the following for the entire year:
• The general fund reports a $30,000 increase in its fund balance.
• The capital projects fund reports a $40,000 increase in its fund balance.
• The enterprise fund reports a $60,000 increase in its net position.
The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2024 and indicate how to
correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as
independent.
During 2024, the City of Coyote received $10,000, which was recorded as a general revenue in the general fund. It was actually a
program revenue earned by the city's park program.
Required:
a. What was the correct overall change for 2024 in the net position reported on the government-wide financial statements?
b. In the general information, the parks program reported net expenses for the period of $100,000. What was the correct amount of
net expenses that should have been reported by the parks program?
Increase or Decrease
Increase
a. Correct change
b. Correct amount of net expenses
10,000
$ 90,000
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