Question:
Circus City issued an 8%, 10-year $2,000,000 bond to build a monorail mass transit system. The city received $1,754,217 cash from the bond issuance on January 1, 2020. The bond yield is 10%. Interest is paid annually on December 31 of each year. Disclosure information about capital assets is reported below.
Circus City?s governmental funds financial statements are as follows:
Circus CityGovernmental FundsStatement of Revenues, Expenditures, and Changes in FundBalances for the Year Ended December 31, 2020
Circus CityGovernmental FundsStatement of Revenues, Expenditures, and Changes in FundBalances for the Year Ended December 31, 2020
* Revenues from licenses and permits are assigned to highways and streets ($100,000) and to the general government ($50,000).
Required:
Using the information above, prepare the statement of activities and the statement of net position on a government-wide basis (using full accrual accounting). The beginning fund balance in the government-wide Statement of Net Position is $2,686,283.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Disclosure of Information about Capital Assets for the Year Ending December 31, 2020 Primary Government Beginning Balance $ 500,000 Ending Balance Governmental Activities Additions Retirements Land $ 500,000 Building Machinery and Equipment Construction in Progress 760,000 760,000 950,000 $(225,000) 725,000 $1,500,000 1,500,000 Infrastructure 450,000 450,000 Totals at historical cost $2,660,000 $1,500,000 $(225,000) $3,935,000 Less accumulated de preciation (59,150) Building Machinery and Equipment (190,000) (249,150) (235,000) (76,050) 140,000 (171,050) Infrastructure (50,000) $(475,000) (33,800) (83,800) Total accumulated depreciation Governmental activities capital $(169,000) $140,000 $(504,000) $2,185,000 $1,331,000 $ (85,000) $3,431,000 assets, net Depreclation expense charged to governmental activities as follows: $ 55,000 72,000 Public Safety General Government Highways and Streets 25,000 Sanitation 17,000 $169,000 Circus City Governmental Funds Fund Balance Sheets at December 31, 2020 Capital Projects Debt Total Service Governmental Fund Fund Funds General Monorail Term Bond Assets Fund Fund Fund $ 64,000 $ 300,000 $ 364,000 16,000 1,450,500 Cash Interest Receivable 12,000 1,250,500 4,000 Investments 100,000 100,000 Property Tax Receivable 183,000 $347,000 $1,562,500 183,000 $2,013,500 Total Assets $104,000 Liabilities and Fund Balance $ 73,000 $ 73,000 $ 50,000 $ 50,000 $ 123,000 $ 123,000 Vouchers Payable Total Liabilities Fund Balances: Restricted for: Capital projects 1,512,500 1,512,500 Debt Service 104,000 104,000 Assigned for encumbrance Unassigned 191,000 191,000 83,000 83,000 Total Fund Balance 274,000 1,512,500 104,000 1,890,500 Total Liabilities and Fund Balances $347,000 $1,562,500 $104,000 $2,013,500