13-3. Describe the contents of the MD&A. 13-4. What do BFS contain? Discuss. 3-6. What bases of accounting are used in the BFS? 13-7. Will long-term assets appear on the governmental funds balance sheet? Why? Problem 13-8. For Simonsen Village (see Problems 12-4 and 12-5 from Chapter 12), pre- pare a government-wide statement of net position and, statement of activities, and agovernmental funds balance sheet and statement of rev- enues, expenditures, and changes in fund balances. Any ending balance in the Debt Service Fund is legally restricted to debt service payments on the firetruck. Also prepare reconcilia- tions for the differences between the governmental and government-wide financial statements. (Hint: The rec- onciliations require you to determine what would differ under accrual accounting compared with modified accrual.) Review chapter content and explore online resources at study.sagepub.com/finklerse -4. See Exhibit 12-4 for opening account bal- ances. Record the following financial transactions for Simonsen Village for the fiscal 12-4- year ending December 31, 2018. Show 462 PART IV Regerting the impact of the transactions on the fon- damental equation equation of acounting show journal entries see Appendix 12z-A) Assume that the modified acerual hasis is used . Simonsen Village has employees who earned $400,ooo for the year. At the end of the year, the salaries payable bal- ance was s10,000 Note that Szoo,o0o of wages related to general govern- ment, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department. 2. Inventory was ordered by Simonsen Village. The entire order was received. The bill for the inventory purchase was Si0,000. By the end of the fiscal year, it had used $6,000 of the inventory but no payment had been made. The purchases method is used. Each of the three departments had used $2,000o of inventory. The remaining inventory was all earmarked for education. 3. Simonsen Village's major source of funds is real estate taxes. Total tax bills issued were for $300,000. Total collections were the $20,000 from the 12 previous year's ending balance in taxes receivable and $260,0oo of this year's taxes. Eighty percent of the outstand- ing balance at year-end is expected to be collected early in the next fiscal year Simonsen Village is entitled to receive 4. unrestricted grants from the state. During the year, grants in the amount of $100,00o were made. The total col- lections on grants were just $20,o00. This $20,00o consisted of $10,000o that the state owed for the previous year and $10,o00 for the current year's grant. The state will be paying the bal- ance owed to Simonsen Village within 30 days after the year ends 5. During the year, Simonsen Village was legally required to transfer $60,000 to of cash was paid to the dete fund. In years when the full eransfer is not made, the dele fond has a ral Fund). if more than the amount is paid, the drbe ervicet recehable declines 6. Simonsen Village acquired a truck carly in the year for aos The fire truck is expected to last so years and has so salvage valoe It finameed by a long-term mote for the full amount. Simonsen Village bas a 7. The interest and principal due on Simonsen Village's debt during the year and paid from the debt service fund were $8,00o and $3o,ooo, respee- tively, The interest covers all long-term borrowing by Simonsen village. The principal relates to the fire track pur- chased during the year. of 12-5. Simonsen Village is a relatively mew com munity. At the start of the year, the govern- ment had no long-term assets or liabillities In fact, all of the infrastracture (eg roads) in the village are owned by the county or state rather than the town. However, the village government has the primary respon- sibility for putting out fires in the village. Transactions 6 and 7 for Simonsen Village, described in Problem 12-4, both relate to the town's new fire truck Exhibit 12-4 presents January 1, 2018, balances for Simonsen Village's accounts. These balances at the start of the year were the same on both the modified accrual and accrual bases. (Hint: That may not be the case at the end of the year.) Show the begin- ning balances from Exhibit 12-4 and the transactions from Problem 12-4 in a work- sheet format similar to Exhibit 12-3. Show ending balances. Make a separate section for each fund. Excel FileEditViewInsert FormatTools Data Window Hel 13-8 Template for Statemen Insert Page Layout Formulas Data Review View Home General Calbri (Body)11AA 1, Paste Simonsen Village of Revenwes Expenditures and Changes in Fund Baances Statement of Revennes, Governmental Funds Total Capital General Service Projeets Governmental Funds Fund Fund Fund 8Revenues Real estate taxes Inte 10 Total revenues 12 13 Expenditures 14 15 16 Educ Public Works, Safety, & 17Sanitatiorn 18 Debt serv 20 21 ital outlay Total Excess of revenues over expenditures ncing So s from long-term capital 28 29 Total other financing sources and 30 32 Fund balances-beginnin Sheett Sheet2 Sheet3+ Ready 13-3. Describe the contents of the MD&A. 13-4. What do BFS contain? Discuss. 3-6. What bases of accounting are used in the BFS? 13-7. Will long-term assets appear on the governmental funds balance sheet? Why? Problem 13-8. For Simonsen Village (see Problems 12-4 and 12-5 from Chapter 12), pre- pare a government-wide statement of net position and, statement of activities, and agovernmental funds balance sheet and statement of rev- enues, expenditures, and changes in fund balances. Any ending balance in the Debt Service Fund is legally restricted to debt service payments on the firetruck. Also prepare reconcilia- tions for the differences between the governmental and government-wide financial statements. (Hint: The rec- onciliations require you to determine what would differ under accrual accounting compared with modified accrual.) Review chapter content and explore online resources at study.sagepub.com/finklerse -4. See Exhibit 12-4 for opening account bal- ances. Record the following financial transactions for Simonsen Village for the fiscal 12-4- year ending December 31, 2018. Show 462 PART IV Regerting the impact of the transactions on the fon- damental equation equation of acounting show journal entries see Appendix 12z-A) Assume that the modified acerual hasis is used . Simonsen Village has employees who earned $400,ooo for the year. At the end of the year, the salaries payable bal- ance was s10,000 Note that Szoo,o0o of wages related to general govern- ment, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department. 2. Inventory was ordered by Simonsen Village. The entire order was received. The bill for the inventory purchase was Si0,000. By the end of the fiscal year, it had used $6,000 of the inventory but no payment had been made. The purchases method is used. Each of the three departments had used $2,000o of inventory. The remaining inventory was all earmarked for education. 3. Simonsen Village's major source of funds is real estate taxes. Total tax bills issued were for $300,000. Total collections were the $20,000 from the 12 previous year's ending balance in taxes receivable and $260,0oo of this year's taxes. Eighty percent of the outstand- ing balance at year-end is expected to be collected early in the next fiscal year Simonsen Village is entitled to receive 4. unrestricted grants from the state. During the year, grants in the amount of $100,00o were made. The total col- lections on grants were just $20,o00. This $20,00o consisted of $10,000o that the state owed for the previous year and $10,o00 for the current year's grant. The state will be paying the bal- ance owed to Simonsen Village within 30 days after the year ends 5. During the year, Simonsen Village was legally required to transfer $60,000 to of cash was paid to the dete fund. In years when the full eransfer is not made, the dele fond has a ral Fund). if more than the amount is paid, the drbe ervicet recehable declines 6. Simonsen Village acquired a truck carly in the year for aos The fire truck is expected to last so years and has so salvage valoe It finameed by a long-term mote for the full amount. Simonsen Village bas a 7. The interest and principal due on Simonsen Village's debt during the year and paid from the debt service fund were $8,00o and $3o,ooo, respee- tively, The interest covers all long-term borrowing by Simonsen village. The principal relates to the fire track pur- chased during the year. of 12-5. Simonsen Village is a relatively mew com munity. At the start of the year, the govern- ment had no long-term assets or liabillities In fact, all of the infrastracture (eg roads) in the village are owned by the county or state rather than the town. However, the village government has the primary respon- sibility for putting out fires in the village. Transactions 6 and 7 for Simonsen Village, described in Problem 12-4, both relate to the town's new fire truck Exhibit 12-4 presents January 1, 2018, balances for Simonsen Village's accounts. These balances at the start of the year were the same on both the modified accrual and accrual bases. (Hint: That may not be the case at the end of the year.) Show the begin- ning balances from Exhibit 12-4 and the transactions from Problem 12-4 in a work- sheet format similar to Exhibit 12-3. Show ending balances. Make a separate section for each fund. Excel FileEditViewInsert FormatTools Data Window Hel 13-8 Template for Statemen Insert Page Layout Formulas Data Review View Home General Calbri (Body)11AA 1, Paste Simonsen Village of Revenwes Expenditures and Changes in Fund Baances Statement of Revennes, Governmental Funds Total Capital General Service Projeets Governmental Funds Fund Fund Fund 8Revenues Real estate taxes Inte 10 Total revenues 12 13 Expenditures 14 15 16 Educ Public Works, Safety, & 17Sanitatiorn 18 Debt serv 20 21 ital outlay Total Excess of revenues over expenditures ncing So s from long-term capital 28 29 Total other financing sources and 30 32 Fund balances-beginnin Sheett Sheet2 Sheet3+ Ready