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Amounts shaded in blue come from Chapter 4 assignment Balance Sheet 5C General Street and Highway City Hall Debt Service City Jail Debt Service Total

Amounts shaded in blue come from Chapter 4 assignment Balance Sheet 5C
General Street and Highway City Hall Debt Service City Jail Debt Service Total Governmental Funds
Assets
Cash $727,500 $100,120 $827,620
Cash with Fiscal Agent 568,000 360,000 928,000
Investments 59,000 200,000 259,000
Taxes Reveivable - (net) 274,000 274,000
Interest & Penalties Receivable - (net) 16,850 16,850
Due from State Government 384,000 177,000 561,000
Total Assets $1,402,350 $336,120 $568,000 $560,000 $2,866,470
Liabilities, Deferred Inflows and Fund Balance
Liabilities
Accounts Payable $376,900 $128,000 $504,900
Due to Other funds 40,200 40,200
Total Liabilities 417,100 128,000 - - 545,100
Deferred Inflows
Property Taxes 27,500 27,500
Fund Balances
Restricted for Street & Highway Maintenance 208,120 208,120
Assigned for: -
Debt Service 568,000 560,000 1,128,000
Other Purposes 58,000 58,000
Unassigned 899,750 899,750
Total Fund Equity 957,750 208,120 568,000 560,000 2,293,870
Total Liabilities, Deferred Inflows and Fund Balance $1,402,350 $336,120 $568,000 $560,000 $2,866,470

Amounts shaded in blue come from Chapter 4 assignment Statement of Revenues, Expenditures, and Changes in Fund Balances
General Street and Highway City Hall Debt Service City Jail Debt Service City Jail Construction Total Governmental Funds
Revenues
Property Taxes $6,657,500 $6,657,500
Sales Taxes 2,942,000 2,942,000
Interest & penalties 16,100 5,120 21,220
Licenses and Permits 800,000 800,000
Intergovernmental Revenues 332,000 1,065,000 1,340,000 2,737,000
Miscellaneous Revenues 350,000 350,000
Total Revenues 11,097,600 1,070,120 - - 1,340,000 13,507,720
Expenditures
Current:
General Government 1,646,900 1,646,900
Public Safety 3,026,900 3,026,900
Highways and Streets 1,441,400 1,042,000 2,483,400
Sanitation 591,400 591,400
Health 724,100 724,100
Welfare 374,300 374,300
Culture and Recreation 917,300 917,300
Capital Outlay 492,800 5,330,300 5,823,100
Debt Service -
Principal 800,000 800,000
Interest 354,000 160,000 514,000
Total Expenditures 9,215,100 1,042,000 1,154,000 160,000 5,330,300 16,901,400
Excess (Deficiency) of Revenues Over Expenditures 1,882,500 28,120 (1,154,000) (160,000) (3,990,300) (3,393,680)
Other Financing Sources (Uses) -
Proceeds of Bonds 4,000,000 4,000,000
Premium on Bonds Sold 200,000 200,000
Transfers In 1,142,000 720,000 1,862,000
Transfers Out (1,662,000) (259,700) (1,921,700)
Total Other Financing Sources (Uses) (1,662,000) - 1,142,000 720,000 3,940,300 4,140,300
Net Change in Fund Balance 220,500 28,120 (12,000) 560,000 (50,000) 746,620
Fund Balance, January 1 737,250 180,000 580,000 - - 1,497,250
Fund Balance, December 31 $957,750 $208,120 $568,000 $560,000 $(50,000) $2,243,870
Business-Type Activities Enterprise Funds Water and Sewer Governmental Activities Internal Service Funds

Assets

Statement of Net Position
Current Assets
Cash $94,400 $35,000
Customer Accounts Receivable (Net) 117,610
Due from Other Funds 37,000 11,000
Inventories 37,000 37,540
Total Current Assets 286,010 83,540
Noncurrent Assets
Advance to Stores and Services Fund 30,000
Restricted Assets (Cash) 142,000
Capital Assets, Net of Accumulated Depreciation 2,921,000 78,400
Total Noncurrent Assets 3,093,000 78,400
Total Assets 3,379,010 161,940
Liabilities
Current Liabilities
Accounts Payable 56,000 19,400
Payroll Taxes Payable 3,300
Due to Internal Service Fund (43,000)
Total Current Liabilities 16,300 19,400
Noncurrent Liabilities
Revenue Bonds Payable 2,500,000
Advance from Water Utility Fund 15,000
Total Noncurrent Liabilities 2,500,000 15,000
Total Liabilities 2,516,300 34,400
Net Position
Net Investment in Capital Assets 421,000 45,400
Restricted 142,000
Unrestricted 620,010 82,140
Total Net Position $1,183,010

$127,540

Statement of Revenues, Expenses, and Changes in Fund Net position

Business-Type Activities Enterprise Funds Water and Sewer Governmental Activities Internal Service Funds
Operating Revenues
Charges for Services $1,055,000 $371,000
Total Current Assets 1,055,000 371,000
Operating Expenses
Cost of Sales and Services 438,190 346,360
Selling 58,900
Administration 109,400 9,000
Depreciation 282,000 14,600
Total Operating Expenses 888,490 369,960
Operting Income 166,510 1,040
Nonoperating Expenses
Interest Expense 145,500 -
Change in Net Position 21,010 1,040
Net Position, January 1 1,162,000 126,500
Net Position, December 31 $1,183,010 $127,540

8C. Assemble the following from previous continuous problems: (1) the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances from Section 5C; (3) the proprietary funds Statement of Net position and Statement of Revenues, Expenses, and Changes in Fund Net position from Section 6C.

Required:

Start a worksheet for adjustments, using the trial balance format illustrated in the text (i.e. list accounts with debit balances first, then accounts with credit balances). Enter the balances from the governmental funds financial statements prepared for Section 5-C. When doing this, follow the following guidelines:

Net position: Use a single account for net position (which will include the beginning balance of all fund balance accounts).

Intergovernmental Revenues: When setting up the worksheet, set up separate lines for the intergovernmental revenues as follows:

State Grant for Highway and Street Maintenance

$ 1,065,000

Operational GrantGeneral Government

332,000

Capital GrantPublic Safety

1,340,000

total

$2,737,000

Capital Assets: It is not necessary to set up separate lines for different classes of capital (fixed) assets or accumulated depreciation (simply use one row for Capital Assets and another for Accumulated Depreciation).

Confirm that the total debits and credits equal.

2. Prepare worksheet entries and post to the worksheet for the following items. Identify each adjustment by the letter used in the problem:

a. Record the January 1, 2017 balances of general fixed assets and related accumulated depreciation accounts. The City of Monroe had the following balances (excluding Internal Service Funds):

Cost

Accumulated Depreciation

Totals

$ 64,200,000

28,700,000

b. Eliminate the capital expenditures shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances.

c. Depreciation expense (governmental activities) for the year totaled $ 4,900,000.

d. Eliminate the other financing sources from the sale of bonds by recording a liability for bonds payable and the related premium.

e. As of January 1, 2017, the City of Monroe had $12,000,000 in general obligation bonds outstanding.

f. Eliminate the expenditures for bond principal.

g. Accrue interest in the amount of $328,000. (Two bond issues were outstanding; interest payments for both were last made on July 1, 2017. The computation is as follows: ($11,200,000 .03 6/12) + ($4,000,000 . 08 6/12) = $328,000).

h. Adjust for the interest accrued in the prior year government-wide statements, but recorded as an expenditure in the 2017 fund basis statements, ($12,000,000 .03 6/12) = $180,000.

i. Amortize bond premium in the amount of $ 10,000.

j. Make adjustments for additional revenue accrual. The only adjustment is for property taxes to eliminate the current year deferral of property taxes.

k. Adjust for the $21,000 of property taxes that was deferred in 2016 and recognized as revenue in the 2017 fund-basis statements.

l. Assume the City adopted a policy in 2017 of allowing employees to accumulate compensated absences. Make an adjustment accruing the expense of $ 42,000 Charge compensated absences expense.

m. Bring in the balances of the internal service fund balance sheet accounts. Again, use a single account for all capital assets and a second account for all accumulated depreciation balances (use a separate column of the worksheet to enter Internal Service Fund entries).

n. No revenues from internal service funds were with external parties. Assume $3,200 of the $11,200 Due from Other Funds in the internal service accounts represents a receivable from the General Fund and the remaining $8,000 is due from the enterprise fund. Eliminate the $3,200 interfund receivables.

o. Reduce governmental fund expenses by the net operating profit of internal service funds. As the amount is small, reduce general government expenses for the entire amount.

p. Eliminate transfers that are between departments reported within governmental activities.

3. Prepare, in good form, a Statement of Activities for the City of Monroe for the Year Ended December 31, 2017. For purposes of this statement, assume:

$ 332,000 in the General Fund is a state grant specifically to support general government programs.

$ 1,065,000 in the Street and Highway Fund is an operating grant specifically for highway and street maintenance expenses.

$ 1,340,000 in the City Jail Construction Fund is a capital grant that applies to public safety.

Use the balances computed from the worksheet completed in part 2 for the governmental activities portion of the statement. Use the solution to P6C (Enterprise fund) to prepare the business activities portion (net any short-term interfund payables/receivables).

4. Prepare, in good form, a Statement of Net position for the City of Monroe as of December 31, 2017. Group all capital assets, net of depreciation. Include a breakdown in the Net position section for (a) capital assets, net of related debt, (b) restricted, and (c) unrestricted. For purposes of classifying net position for the governmental activities, assume:

For the governmental activities net position invested in capital assets, net of related debt, the related debt includes the bonds payable, the premium on bonds payable, and the advance from the water utility fund.

The special revenue fund resources are restricted by the granting agency for street and highway maintenance. Assume $204,500 are the only restricted resources in the governmental activities.

5. Prepare the reconciliation necessary to convert from the fund balance reported in the governmental funds Balance Sheet to the net position in the government-wide Statement of Net position.

6. Prepare the reconciliation necessary to convert from the change in fund balances in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the change in net position in the government-wide Statement of Activities.

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