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, 2025. The bond yield is 10%. Interest is paid annually on December 31 of each year. Disclosure information about capital assets is reported below.

Depreciation expense charged to governmental activities as follows:

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.

Transcribed Image Text:

Disclosure of Information about Capital Assets for the Year Ending December 31, 2025 Primary Government Governmental Activities Land Building Machinery and Equipment Construction in Progress Infrastructure Totals at historical cost Less accumulated depreciation Building Machinery and Equipment Infrastructure Beginning Balance $ 500,000 760,000 950,000 450,000 $2,660,000 (190,000) (235,000) (50,000) Total accumulated depreciation $(475,000) $2,185,000 Governmental activities capital assets, net Additions $1,500,000 Retirements $ 500,000 760,000 725,000 1,500,000 450,000 $1,500,000 $(225,000) $3,935,000 (59,150) (76,050) (33,800) $(169,000) $1,331,000 $(225,000) 140,000 Ending Balance $140,000 $ (85,000) (249,150) (171,050) (83,800) $(504,000) $3,431,000