The Finance Director of the City of Wrong Way has asked for your assistance in reviewing the Statement of Net Assets that he has prepared for the year ended June 30, 20X9. The statement is shown on the next page.
1. The city has multiple governmental and proprietary funds. Its only fiduciary fund is a pension plan. It has four component units. All fund and component unit statements were prepared correctly.
2. All amounts disclosed for depreciable and nondepreciable capital assets in the city’s Capital Assets Schedule are considered material, individually and in total.
3. Bonds for $10,000 were issued at the end of the year in a private placement (no premium, discount, or bond issue costs). All bonds have been issued for capital asset acquisition.
Identify the errors in the Statement of Net Assets. Explain why each item you find is incorrect.

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ASSETS Cash Investments Due from Federal Government Taxes Receivable (net).... K Penalties and Interest Receivable (net) Capital Assets (net) Accounts Receivable (net) Accrued Interest Receivable.. Restricted Cash-Construction Inventory of Materials and Supplies Prepaid Rent Internal Balances .... Due from Special Revenue Fund Due from General Fund Due from Golf Course Enterprise Fund Total Assets City of Wrong Way Balance Sheet For the Year Ended December 31, 20X9 Governmental Activities S 36,343 67,218 81,081 98,364 37,098 268,448 98,581 3,215 10,000 71,894 13,624 6,412 5,613 797,891 Primary Government Enterprise Fiduciary Funds Activities $ 83,147 $ 14,544 82,099 844,996 64,329 130,977 117,243 50,720 4,517 16,566 24,982 5,217 462,554 Total $134,034 $ 26,348 $ 160,382 994,313 78,628 1,072,941 145,410 145,410 98,364 98,364 37,098 37,098 516,668 290,115 806,783 18,048 167,349 49,587 216,936 40,005 47,737 3,621 51,358 10,000 10,000 88,460 89,792 24,982 13,624 6,412 5,613 5,217 1,034,836 2,295,281 Component Reporting Units Entity Total 1,332 449,631 24,982 13,624 6,412 5,613 5,217 2,744,912