The City of Coyote mailed property tax bills for 2011 to its citizens during August 2010. Payments could be made early to receive a discount. The levy becomes legally enforceable on February 15, 2011. All money received must be spent during 2011 or later. The total assessment is \($300,000;\) 40 percent of that amount, less a 10 percent discount, is collected in 2010. The city expects to receive all of the remaining money during 2011 with no discount. During 2010, the government increased cash as well as a revenue for the amount received. No change was made in creating the governmentwide financial statements.

a. What was the correct overall change in the city’s net assets as shown on the government-wide financial statements?

b. What was the correct change for 2010 in the fund balance reported in the General Fund?

Assume that the City of Coyote has already produced its financial statements for December 31, 2010, and the year then ended. The city’s General Fund was only for education and parks. Its Capital Projects Funds worked with each of these functions at times. The city also had established an Enterprise Fund to account for its art museum.
The government-wide financial statements indicated the following figures:
• Education reported net expenses of \($600,000\).
• Parks reported net expenses of \($100,000\).
• Art museum reported net revenues of \($50,000\).
• General government revenues for the year were \($800,000\) with an overall increase in the city’s net assets of \($150,000\).
The fund-based financial statements indicated the following for the entire year:
• The General Fund reported a \($30,000\) increase in its fund balance.
• The Capital Projects Fund reported a \($40,000\) increase in its fund balance.
• The Enterprise Fund reported a \($60,000\) increase in its net assets.
The CPA firm of Abernethy and Chapman has been asked to review several transactions that occurred during 2010 and indicate how to correct any erroneous reporting and the impact of each error. View each situation as independent.