The City of Coyote mails property tax bills for 2021 to its citizens during August 2020. Payments could be made early to receive a discount. The levy becomes legally enforceable on February 15, 2021. All money the government receives must be spent during 2021 or later. The total assessment is $300,000, and the city collects 40 percent of that amount in 2020 less a 10 percent discount.

The city expects to receive all remaining money during 2021 with no discount. During 2020, the government increases cash and a revenue for the amount received. In addition, a receivable and an unavailable revenue for $180,000 are recognized.

a. In the general information, an overall increase in the city’s net position of $150,000 was found on the government-wide financial statements. What is the correct overall change in the city’s net position as reported on the government-wide financial statements?

b. In the general information, an overall increase of $30,000 is reported in the fund balance for the general fund. What was the correct change during 2020?

Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. The city’s general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these functions at times during the current year. The city also maintained an enterprise fund to account for its art museum.

The government-wide financial statements provide the following figures:

• Education reports net expenses of $600,000.
• Parks reports net expenses of $100,000.
• Art museum reports net revenues of $50,000.
• General government revenues for the year were $800,000 with an overall increase in the city’s net position of $150,000.

The fund financial statements provide the following for the entire year:

• The general fund reports a $30,000 increase in its fund balance.
• The capital projects fund reports a $40,000 increase in its fund balance.
• The enterprise fund reports a $60,000 increase in its net position.

The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent.