
Advanced Accounting - Standalone book
12th Edition
ISBN: 9780077862220
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 17, Problem 39P
a.
To determine
Prepare a statement of activity and statement of net position for governmental activities for city B.
a.
Expert Solution

Explanation of Solution
Statement of activity in the books of city B:
Statement of activities | |||||
Program revenue | Net revenue and change in net assets | ||||
Program | Expenses | Charges for services | Grants and contribution | Governmental activities | Total |
Primary Government: | |||||
Governmental activities: | |||||
General Governmental | $180,000 | $15,000 | ($165,000) | ($165,000) | |
Public Safety | $158,000 | $8,000 | ($150,000) | ($150,000) | |
Public Works | $159,500 | $12,000 | ($147,500) | ($147,500) | |
Health and Sanitation | $37,000 | $31,000 | $25,000 | $19,000 | $19,000 |
Interest on debt | $42,000 | ($42,000) | ($42,000) | ||
Total Governmental | |||||
Activities | $576,500 | $66,000 | $25,000 | ($485,500) | ($485,500) |
Table: (1)
Working note:
Computation of closing amount of net assets:
General Revenues: | Amount |
Property taxes received | $ 630,000 |
Sales Taxes | $ 99,000 |
Dividend Income | $ 20,000 |
Gain on Sale of Investments | $ 14,000 |
Gain on Investments | $ 5,000 |
Total general revenues | $ 768,000 |
$ - | |
Change in net assets: | $ - |
Net assets – beginning | $ 120,000 |
Change | $ 282,500 |
Net assets – ending | $ 402,500 |
Table: (2)
Statement of net position in the books of city P:
Statement of net assets | |
Particulars | Governmental activities |
Assets | |
Current Assets: | |
Cash & Equivalents | $139,000 |
Prepaid insurance | $6,000 |
Investments | $116,000 |
Receivables | $120,000 |
Inventories | $6,000 |
Total Current Assets | $387,000 |
Capital Assets: | |
Building (Net of | $240,000 |
Building (Net of depreciation) | $199,500 |
Equipment (Net of depreciation) | $81,000 |
Truck (Capital Lease) | $64,000 |
Total Assets | $971,500 |
Liabilities: | |
Current Liabilities: | |
Wages Payable | $36,000 |
Noncurrent Liabilities: | |
Lease Obligation | |
Payable | $64,000 |
Closure Liability | |
Landfill | $39,000 |
Long-term Notes | |
Payable | $430,000 |
Total Liabilities | $569,000 |
Net assets | |
Invested in capital assets, | |
net of related debt | $154,500 |
Unrestricted (deficit) | $248,000 |
Total Net Assets | $402,500 |
Table: (2)
b.
To determine
Prepare a statement of revenue, expenditure and change in fund balance and a
b.
Expert Solution

Explanation of Solution
Statement of activity in the books of city B:
Statement of revenue, expenditure and change in fund balance | |
Revenues: | Amount |
Government Funds | |
Property taxes received | $630,000 |
Sales taxes | $99,000 |
Dividend income | $20,000 |
Charges for Services | $66,000 |
Grant | $25,000 |
Investments (Realized Gain) | $14,000 |
Investments (Unrealized Gain) | $5,000 |
Total | $859,000 |
Expenditures: | |
Current: | |
General Governmental | $150,000 |
Public Safety | $149,000 |
Public Works | $122,000 |
Health and Sanitation | $37,000 |
Debt Service: | |
Principal payment on debt | $10,000 |
Interest on debt | $42,000 |
Capital Outlay: | |
Building | $210,000 |
Equipment | $90,000 |
Truck—leased | $64,000 |
Total expenditures | $874,000 |
Excess (deficiency) of revenues | |
over expenses) | ($15,000) |
Other Financing Sources: | |
Proceeds from long-term note | $200,000 |
Capitalized lease—truck | $64,000 |
Total other financing sources | $264,000 |
Net Changes in fund balance | $249,000 |
Fund balance—beginning | $90,000 |
Less: increase in encumbrances | ($31,000) |
Fund balance—ending—unrestricted | |
and unreserved | $308,000 |
Table: (3)
Balance sheet in the books of city B for the year 2015:
Balance sheet for the year ended 31 December 2015 | |
Particulars | Amount |
Assets | |
Cash and cash equivalents | $139,000 |
Investments | $116,000 |
Receivables, net | $120,000 |
Supplies | $6,000 |
Prepaid Insurance | $6,000 |
Total Assets | $387,000 |
Liabilities and Fund Balances | |
Liabilities: | |
Salaries Payable | $36,000 |
Fund Balances | |
Reserved fund balances | |
Encumbrances | |
Equipment | $24,000 |
Supplies | $7,000 |
Supplies | $6,000 |
Prepaid Insurance | $6,000 |
Unrestricted, unreserved | $308,000 |
Total Fund Balance | $351,000 |
Total Liabilities and Fund Balance | $387,000 |
Table: (4)
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
What is the adjusting entry for the accrued interest at December 31 on the note for this financial accounting question?
Calculate the cash callected from customer
The manufacturing overhead budget should be?
Chapter 17 Solutions
Advanced Accounting - Standalone book
Ch. 17 - Prob. 1QCh. 17 - Prob. 2QCh. 17 - Prob. 3QCh. 17 - Prob. 4QCh. 17 - A landfill is scheduled to be filled to capacity...Ch. 17 - The City of VanStone operates a solid waste...Ch. 17 - Prob. 7QCh. 17 - Prob. 8QCh. 17 - Prob. 9QCh. 17 - Prob. 10Q
Ch. 17 - Prob. 11QCh. 17 - Prob. 12QCh. 17 - Prob. 13QCh. 17 - What does a comprehensive annual financial report...Ch. 17 - Prob. 15QCh. 17 - Prob. 16QCh. 17 - What is the difference between a blended component...Ch. 17 - Prob. 18QCh. 17 - Prob. 19QCh. 17 - Prob. 20QCh. 17 - Prob. 21QCh. 17 - How are internal service funds reported on...Ch. 17 - Prob. 23QCh. 17 - A general purpose government takes over a special...Ch. 17 - Prob. 25QCh. 17 - Prob. 26QCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - Prob. 4PCh. 17 - Prob. 5PCh. 17 - A city creates a solid waste landfill. It assesses...Ch. 17 - Prob. 7PCh. 17 - If this landfill is judged to be a proprietary...Ch. 17 - If this landfill is judged to be a governmental...Ch. 17 - The City of Nomanchester has a defined benefit...Ch. 17 - Prob. 11PCh. 17 - Prob. 12PCh. 17 - Prob. 13PCh. 17 - Prob. 14PCh. 17 - A city builds sidewalks throughout its various...Ch. 17 - Prob. 16PCh. 17 - Prob. 17PCh. 17 - Prob. 18PCh. 17 - Prob. 19PCh. 17 - Prob. 20PCh. 17 - Prob. 21PCh. 17 - Prob. 22PCh. 17 - Prob. 23PCh. 17 - Prob. 24PCh. 17 - Prob. 25PCh. 17 - Prob. 26PCh. 17 - Prob. 27PCh. 17 - Prob. 28PCh. 17 - Prob. 29PCh. 17 - Prob. 30PCh. 17 - Prob. 31PCh. 17 - Prob. 32PCh. 17 - Prob. 33PCh. 17 - Prob. 34PCh. 17 - Prob. 35PCh. 17 - The City of Francois, Texas, has begun the process...Ch. 17 - Prob. 37PCh. 17 - Prob. 38PCh. 17 - Prob. 39PCh. 17 - Prob. 40PCh. 17 - Prob. 41PCh. 17 - 42. For each of the following, indicate whether...Ch. 17 - For problems 40 through 43, use the following...Ch. 17 - Prob. 44PCh. 17 - Prob. 45PCh. 17 - Prob. 46PCh. 17 - On the first day of the year, the City of Wolfe...Ch. 17 - Prob. 48PCh. 17 - A city has a solid waste landfill that was filled...Ch. 17 - Use the same information as in problem 44 except...Ch. 17 - Prob. 51PCh. 17 - Prob. 52PCh. 17 - Prob. 53PCh. 17 - Prob. 2DYSCh. 17 - Read the following journal article: 25 Years of...Ch. 17 - Prob. 4DYSCh. 17 - Prob. 5DYSCh. 17 - The City of Larissa recently opened a solid waste...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What is the operating leverage?arrow_forwardWhat is the amount of cash Anderson would receive from the sale?arrow_forwardAnderson Enterprises issues $2,000,000 of 7% bonds at 102. What is the amount of cash Anderson would receive from the sale? a. $2,040,000 b. $1,960,000 c. $2,000,000 d. $2,200,000 e. None of the abovearrow_forward
- Nonearrow_forwardFind the sale made during the Decemberarrow_forwardDuring November, Pico Company had $120,300 of cash receipts and $119,750 of cash disbursements. The November 30 cash balance was $25,400. Determine how much cash the company had at the close of business on October 31. Helparrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education