Assignment X ACCT315 Assignment. X Customer Profile Cleve X Mail - DANA A A A ALF X Post Attendee - Zoom X *chapter 2 case study.c x (7) WhatsApp X C File | /Users/danaalfares/Downloads/ACCT315%20Assignment.pdf G D : Apps ACCT315 Assignment.pdf 2/3 Ghala Al khadda Question The financial statements of the Town of Fordville consist of a statement of cash receipts and a statement of cash disbursements prepared by he town treasurer for each of its three funds: the General Fund, the Road Tax Fund (special revenue fund), and the Sewer Fund (enterprise fund). As required by state law, the town submits its financial statements to the Office of the State Auditor, however, due to its small size, its financial statements have never had to be audited by an independent auditor. Because of its growing population (nearing 20,000) and increasing financial complexity, the town has hired Emily Ramirez, who recently obtained her CPA license, to supervise all accounting and financial reporting operations. Having worked two years for a CPA firm in a nearby town, Ms. Ramirez gained limited experience e auditing not-for-profit organizations, as well as compiling financial statements for small businesses. Although she has little knowledge of governmental accounting, she is confident that her fou n in busi and not-for-profit accounting will enable her to handle the job. Using her experience with not-for-profit organizations, for the year ended December 31, 2020, Ms. Ramirez prepared the following unaudited financial statements for the Town of Fordville. Assuming the city wants to prepare financial statements in accordance with GASB standards, study the financial statements and answer the questions that follow. TOWN OF FORDVILLE Balance Sheet aber 31, 2020 (unaudited) Assets Cash $ 1,740 Taxes receivable 18,555 Investments 7,468 Due from other governments 28,766 Land, buildings, and equipment (net of accumulated depreciation of $132,640) 287.580 Total assets $344,109 Liabilities and Net Assets Accounts payable $ 3,892 Due to other governments 11,943 Total liabilities 15,835 Net assets-without donor restrictions 299,893 Net assets-with donor restrictions 28,381 + Total net assets 328,274 Total liabilities and net assets $344,109Assignment X ACCT315 Assignment. X Customer Profile Cleve X Mail - DANA A A A ALF X Post Attendee - Zoom X *chapter 2 case study.c x 8 (8) WhatsApp X C File | /Users/danaalfares/Downloads/ACCT315%20Assignment.pdf G D : Apps ACCT315 Assignment.pdf 3/ 3 Ghala Al khadda TOWN OF FORDVILLE Statement of Activities Year Ended December 31, 2020 (unaudited) Revenues Property taxes $ 121,290 Charges for services 3,580 Sewer fees 6.859 Investment income 239 Total revenues 131,968 Expenses Government services 115,958 Sewer services 7.227 Miscellaneous 8.462 Total expenses 131,647 Increase in net assets 321 Net assets, January 1, 2020 327.953 Net assets, December 31, 2020 $ 328,274 Based on above information, answer the following questions: 1. What basis of accounting does it appear Ms. Ramirez has used? Explain how you arrived at your answer. (8 marks) 2. Are above those two financial statements reveal that the statements clearly do conform to the GASB standard. Explain. (8 marks) 3. The information provided indicates that the town has three fund classifications: governmental funds (General fund and special revenue fund) and proprietary (enterprise fund). As a result the town would be required to prepare the financial statements, i.e Governmental fund financial statements, Proprietary fund financial statements, and Government-wide financial statements. You are required to list the name of statements under the above three categories (i.e. Governmental fund financial statements, Proprietary fund financial statements, and Government-wide financial statements). [9 marks] +
