
Fundamentals of Advanced Accounting
7th Edition
ISBN: 9781259722639
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Question
Chapter 12, Problem 35P
a.
To determine
Prepare a statement of activities and a statement of net position for the year 2017.
a.
Expert Solution

Explanation of Solution
Statement of activity for W:
Statement of activities | |||||||
Program revenue | Net revenue and change in net assets | ||||||
Program | Expenses | Charges for services | Grants and contribution (operating) | Grants and contribution (capital) | Governmental activities | Business activities | Total |
Primary government: | |||||||
Governmental activities | |||||||
General governmental | $149,000 | $5,000 | $14,000 | ($130,000) | ($130,000) | ||
Public safety | $90,000 | $3,000 | ($87,000) | ($87,000) | |||
Health and sanitation | $70,000 | $42,000 | ($28,000) | ($28,000) | |||
Interest on debt | $16,000 | ($16,000) | ($16,000) | ||||
Total governmental activities | $325,000 | $50,000 | $14,000 | ($261,000) | ($261,000) |
Table: (1)
Working note:
Computation of closing amount of net assets:
General revenue: | |
Property taxes | $ 401,000 |
Franchise taxes | $ 42,000 |
Investment | $ 13,000 |
Total | $ 456,000 |
Change in net assets | $ 195,000 |
Net assets – beginning | |
Net assets – closing | $ 195,000 |
Table: (2)
Statement of net assets for W:
Statement of net assets | |||
Particulars | Governmental activities | Business activities | Total |
Assets | |||
Cash & equivalents | $ 62,000 | $ 62,000 | |
Prepaid expenses | $ 2,000 | $ 2,000 | |
Investment | $ 103,000 | $ 103,000 | |
Receivables | $ 81,000 | $ 81,000 | |
Inventories | $ 3,000 | $ 3,000 | |
Capital assets | $ 172,000 | $ 172,000 | |
Total assets | $ 423,000 | $ 423,000 | |
$ - | |||
Liabilities | $ - | ||
Salaries payable | $ 19,000 | $ 19,000 | |
Compensating absence | $ 13,000 | $ 13,000 | |
Noncurrent liabilities | $ 196,000 | $ 196,000 | |
Total liabilities | $ 215,000 | $ 13,000 | $ 228,000 |
$ - | |||
Net assets | $ - | ||
$ - | |||
Invested in net assets | $ (24,000) | $ (24,000) | |
Unrestricted | $ 219,000 | $ 219,000 | |
Total net assets | $ 195,000 | $ 195,000 |
Table: (3)
b.
To determine
Prepare a statement of revenues, expenditures and other changes in fund balance and a
b.
Expert Solution

Explanation of Solution
Statement of revenues, expenditures and other changes in fund balance for W:
Statement of revenue, expenditure and change in fund balance | ||
Particulars | General funds | Total government funds |
Property taxes | $ 401,000 | $ 401,000 |
Franchise taxes | $ 42,000 | $ 42,000 |
Charges for Services | $ 50,000 | $ 50,000 |
Investments | $ 13,000 | $ 13,000 |
Total | $ 506,000 | $ 506,000 |
Expenditures: | ||
General Governmental | $ 110,000 | $ 110,000 |
Public Safety | $ 90,000 | $ 90,000 |
Health and Sanitation | $ 54,000 | $ 54,000 |
Debt Service: | ||
Principal payment on debt | $ 4,000 | $ 4,000 |
Interest on debt | $ 16,000 | $ 16,000 |
Capital Outlay | $ 200,000 | $ 200,000 |
Total expenditures | $474,000 | $474,000 |
Excess of | ||
revenues over expenses | 32,000 | 32,000 |
Other Financing Sources: | ||
Proceeds from long-term note | 200,000 | 200,000 |
other | ||
uses and sources | 200,000 | 200,000 |
Net Changes in fund balance | ||
Fund Balances (beginning) | - | - |
Fund Balances (ending) | $232,000 | $232,000 |
Table: (4)
Balance sheet for W:
Balance sheet | ||
Particulars | General funds ($) | Total government funds ($) |
Assets: | ||
Cash & equivalents | 62,000 | 62,000 |
Prepaid expense | 2,000 | 2,000 |
Investment | 103,000 | 103,000 |
Receivables | 81,000 | 81,000 |
Inventory | 3,000 | 3,000 |
Total assets | 251,000 | 251,000 |
Liabilities: | ||
Salaries payable | 19,000 | 19,000 |
Fund balance - | ||
For encumbrances | 12,000 | 12,000 |
For inventory | 3,000 | 3,000 |
For prepaid expenses | 2,000 | 2,000 |
For unreserved | 215,000 | 215,000 |
Total fund balance | 232,000 | 232,000 |
Total liabilities | 251,000 | 251,000 |
Table: (5)
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Chapter 12 Solutions
Fundamentals of Advanced Accounting
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 16QCh. 12 - Prob. 17QCh. 12 - Prob. 18QCh. 12 - Prob. 19QCh. 12 - Prob. 20QCh. 12 - Prob. 21QCh. 12 - Prob. 22QCh. 12 - Prob. 23QCh. 12 - Prob. 24QCh. 12 - Prob. 25QCh. 12 - Prob. 26QCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10PCh. 12 - Prob. 11PCh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Prob. 30PCh. 12 - Prob. 31PCh. 12 - 32. A city government adds street lights within...Ch. 12 - Prob. 33PCh. 12 - Prob. 34PCh. 12 - Prob. 35PCh. 12 - Prob. 36PCh. 12 - Prob. 37PCh. 12 - Prob. 38PCh. 12 - 39. For each of the following, indicate whether...Ch. 12 - Prob. 40PCh. 12 - Prob. 41PCh. 12 - Prob. 42PCh. 12 - Prob. 43PCh. 12 - Prob. 44PCh. 12 - Prob. 45PCh. 12 - Prob. 46PCh. 12 - Prob. 47PCh. 12 - Prob. 48PCh. 12 - Prob. 2DYSCh. 12 - Prob. 3DYSCh. 12 - Prob. 4DYSCh. 12 - Prob. 5DYSCh. 12 - Prob. 6DYS
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