Reporting reconciliation between fund and government-wide financial statements Sai-Tu Village reported outstanding long-term bonds payable of S6,000,000 in the governmental activities column of its government-wide statement of net position for the year ended December 31, 2019. During 2020, Sai-Tu Village sold S500,000 of new general obligation bonds and repaid S300,000 of bonds outstanding at the beginning of the year. Based on this information, determine the reconciliation amounts reported in the two funds' financial statements to the two government-wide financial statements. Use a negative sign with your answer, if appropriate. Reconciliation of Governmental fund balance sheet to Government-wide statement of net position Amounts reported in the statement of net position are different because: Bonds payable are not due and payable in the current period and, therefore, are not reported in the funds Answer Reconciliation of Governmental funds statement of revenues, expenditures, and change in fund balances to Government-wide statement of activities Amounts reported in the funds statement are different because: Bond proceeds provide current financial resources and debt repayments are expenditures in governmental funds. Issuing debt increases liabilities (and repaying debt decreases them) in the statement of net position.The amount by which bond proceeds exceeded repayments in the current period is Answer
Reporting reconciliation between fund and government-wide financial statements Sai-Tu Village reported outstanding long-term bonds payable of S6,000,000 in the governmental activities column of its government-wide statement of net position for the year ended December 31, 2019. During 2020, Sai-Tu Village sold S500,000 of new general obligation bonds and repaid S300,000 of bonds outstanding at the beginning of the year. Based on this information, determine the reconciliation amounts reported in the two funds' financial statements to the two government-wide financial statements. Use a negative sign with your answer, if appropriate. Reconciliation of Governmental fund balance sheet to Government-wide statement of net position Amounts reported in the statement of net position are different because: Bonds payable are not due and payable in the current period and, therefore, are not reported in the funds Answer Reconciliation of Governmental funds statement of revenues, expenditures, and change in fund balances to Government-wide statement of activities Amounts reported in the funds statement are different because: Bond proceeds provide current financial resources and debt repayments are expenditures in governmental funds. Issuing debt increases liabilities (and repaying debt decreases them) in the statement of net position.The amount by which bond proceeds exceeded repayments in the current period is Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Reporting reconciliation between fund and government-wide financial statements
Sai-Tu Village reported outstanding long-term bonds payable of S6,000,000 in the governmental activities
column of its government-wide statement of net position for the year ended December 31, 2019. During
2020, Sai-Tu Village sold $500,000 of new general obligation bonds and repaid $300,000 of bonds
outstanding at the beginning of the year.
Based on this information, determine the reconciliation amounts reported in the two funds' financial
statements to the two government-wide financial statements.
Use a negative sign with your answer, if appropriate.
Reconciliation of Governmental fund balance sheet to Government-wide statement of net position
Amounts reported in the statement of net position are different because:
Bonds payable are not due and payable in the current period and, therefore, are not reported
in the funds
Answer
Reconciliation of Governmental funds statement of revenues, expenditures, and change in fund
balances to Government-wide statement of activities
Amounts reported in the funds statement are different because:
Bond proceeds provide current financial resources and debt repayments are expenditures in
governmental funds. Issuing debt increases liabilities (and repaying debt decreases them) in
the statement of net position.The amount by which bond proceeds exceeded repayments in
the current period is
Answer
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