The following information has been provided by the City of Edward for its most recent December 31 fiscal year-end. The informationprovided relates to financial information needed to reconcile the net change in governmental fund balances to the change in netposition of governmental activities.Net change in total governmental fund balancesChange in net position of governmental activitiesCapital outlay reported as expendituresPrincipal payment on long-term debtDepreciation expenseAccrued expenses that do not require use of current financial resourcesRevenues that do not provide current financial resources$322,7911,025, 377Net change in fund balances-governmental fundsAmounts 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 andare not reported as revenues in governmental funds.Debt payments use financial resources of governmental funds, but decrease long-term liabilities inthe statement of net position.RequiredPrepare reconciliation of the net change in governmental fund balances to the change in net position of governmental activities for theCity of Edward. (Decreases should be indicated with a minus sign.)Some expenses reported in the statement of activities do not require the use of current financialresources and therefore are not reported as expenditures in governmental funds.Change in net position of governmental activitiesX Answer is not complete.CITY OF EDWARDReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances-GovernmentalFunds to the Statement of ActivitiesFor the Year Ended December 31, 2023627,576100,00043,5594,55023, 119$$322,791 ✔43,559 X23.119(314,083) ►75,386

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 $ 322,791 1,025,377 627,576 100,000 43,559 4,550 23,119 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.) X Answer is not complete.

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 $ 322,791 1,025,377 627,576 100,000 43,559 4,550 23,119 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.) X Answer is not complete.

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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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 $ 322,791 1,025,377 627,576 100,000 43,559 4,550 23,119 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.) Answer is complete but not entirely correct. CITY OF EDWARD Reconciliation of the Statement of Revenues,…
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For the following event, prepare journal entries under a governmental fund (using modified accrual), necessary worksheet entries, and government-wide financial statements (using accrual basis of accounting). The modified accrual statement reflected debt service expenditures in the amount of $500,000 for interest and $612,000 for principal. No adjustment was necessary for interest accruals at year-end. J/E under Modified Accrual Account Debited [ Select] [Select] > > Account Credited [Select] Amount Debited 612,000 500,000 Amount Credited 1,112,000
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Computation of a government's budgetary cushion Following are extracts from a city's General Fund balance sheet and statement of revenues, expenditures, and changes in fund balance. General Fund Extracts Fund Balance: Nonspendable (supplies inventory) $59,760 28,600 Restricted (intergovernmental grant) 110,000 Assigned (appropriated for next year's budget) Assigned (for future OPEB expenditures) 16,500 Unassigned 1,292,740 Total fund balance $1,507,600 Total revenues $31,339,000 Transfers in (all recurring) $400,400 a) How much (in dollars) is available to help balance future budgets? $ b) Calculate the budgetary cushion. Round the percentage to one decimal. % c) Using the rule of thumb suggested in the text, would the budgetary cushion be considered be considered reasonable, too high, or too low?
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