The government-wide financial statements provide the following figures:• Education reports net expenses of $618,000.• Parks reports net expenses of $115,000.. Art museum reports net revenues of $65,250.• General government revenues for the year were $832,750 with an overall increase in the city's net position of $165,000.The fund financial statements provide the following for the entire year:• The general fund reports a $52,750 increase in its fund balance.The capital projects fund reports a $57,250 increase in its fund balance.• The enterprise fund reports a $79,500 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 tocorrect any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations asIndependent.In 2024, the City of Coyote receives a $495,000 cash grant from the state to reduce air pollution. Although a special revenue fundcould have been set up, the money remains in the general fund. The cash was received immediately but will have to be returned if thecity does not lower its air pollution by 25 percent by 2028. On December 31, 2024, Coyote spends $376,000 of the money for a largemachine to help begin the process of reducing air pollution City officials expect the machine to last for five years. The city recordedthe cost as an expenditure in the general fund but as an asset on the government-wide financial statements, where it was depreciatedbased on the straight-line method and the half-year convention. Because the city received the money, it recorded all $495,000 as arevenue on both the fund and the government-wide financial statements.Required:a. What was the correct change for 2024 in the total fund balance reported by the general fund?b. What was the correct overall change in the net position reported on the government-wide financial statements?a. Correct changeb. Correct changeIncrease or Decrease

Deferred revenue is the difference in timing between cash receipt and revenue recognition in accrual…

Answered: - Education reports net expenses of…

- Education reports net expenses of $618,000. -Parks reports net expenses of $115,000. Art museum reports net revenues of $65,250. General government revenues for the year were $832,750 with an ove

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Changes in mix of revenues and expenditures must be interpreted with care. The data that follow were drawn from the city of Boulder, Colorado’s CAFR. Dates have been changed. They are from two statistical-section schedules showing the mix of revenue and expenditures for a 10-year period. They include amounts only from the general fund, special revenue funds, and debt service funds. 2020 2021 (amounts in thousands) Revenues Sales and use taxes $ 97,397 $104,136 General property taxes 29,474 29,434 Other taxes 20,278 21,184 Charges for services 27,030 22,670 Intergovernmental 16,420 13,348 Proceeds from bonds and notes 54,830 Other 20,660 21,473 Total revenues $266,089 $212,245 Expenditures General government and administration $ 27,717 $ 30,185 Public safety 47,825 48,202 Public works 22,178 27,896 Housing and human services 13,384 20,226 Culture and recreation 25,677 28,089 Capital outlay 29,111 19,218 Debt service 13,574 16,375…
The governmental funds of the City of Westchester report $601,500 in assets and $214,000 in liabilities. The following are some of the assets that the government reports. • Prepaid items-$16,900. • Cash from a bond issuance that must be spent within the school system according to the bond indenture-$120,000. • Supplies-$5,750. • Investments given by a citizen that will be sold soon with the proceeds used to beautify a public park-$34,500. • Cash that the assistant director of finance designated for use in upgrading the local roads-$43,750. • Cash from a state grant that must be spent to supplement the pay of local kindergarten teachers-$59,000. • Cash that the city council (the highest level of decision-making authority in the government) voted to use in renovating a school gymnasium-$80,750. On a balance sheet for the governmental funds, what fund balance amounts should the City of Westchester report? Answer is complete but not entirely correct. Fund balance-nonspendable Fund…
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The City of Upper Falls accounts for its inventory using the purchases method. During the year the City bought $400,000 of supplies, for which it owed $100,000 at year-end. The City will pay for the supplies from available expendable financial resources. The entry that should be recorded in the City s General Fund is a. Debit Expenditures $400,000; Credit Cash $300,000 and Accounts Payable $100,000. b. Debit Expenditures $300,000; Credit Cash $300,000. c. Debit Supplies Inventory $400,000; Credit Cash $300,000 and Accounts Payable $100,000. d. Debit Supplies Inventory $300,000; Credit Cash $300,000.
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Following is the information concerning operating activity for Annette County. For the year ended June 30, the net change in total governmental fund balances was $(289,200), and the change in net position of governmental activities was $(376,600). During the year, Annette issued $2,000,000 in general obligation bonds at a premium of 101. The bonds are to be used for a construction project. The county acquired $2,750,000 in capital assets and sold capital assets with a book value of $563,000 for $570,900. At the beginning of the period, accrued liabilities were $470,000 and at the end of the period, they totaled $494,000. Depreciation on capital assets totaled $595,000. Revenue accrued for the period but not available for use totaled $364,600. Required Prepare a reconciliation of the change in governmental fund balance to the change in net position of governmental activities. (Decreases should be indicated with a minus sign.) ANNETTE COUNTY Reconciliation of the Statement of Revenues,…
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