Assume that the City of Coyote has already produced its financial statements for December 31, 2017, 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 during the current year. The city also had established an enterprise fund to account for its art museum.

The government-wide financial statements indicated the following figures:

1. Education reported net expenses of $600,000.
2. Parks reported net expenses of $100,000.
3. Art museum reported net revenues of $50,000.
4. 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 indicated the following for the entire year:

1. The general fund reported a $30,000 increase in its fund balance.
2. The capital projects fund reported a $40,000 increase in its fund balance.
3. The enterprise fund reported a $60,000 increase in its net position.

The CPA firm of Abernethy and Chapman has been asked to review several transactions that occurred during 2017 and indicate how to correct any erroneous reporting and the impact of each error. View each of the following situations as independent.

During 2017, the City of Coyote's General Fund received $10,000, which was recorded as a general revenue when it was actually a program revenue earned by its park program.

1. What was the correct overall change for 2017 in the net position reported on the government-wide financial statements?
2. In the general information above, the parks reported net expenses for the period of $100,000. What was the correct amount of net expenses reported by the parks?

a. Correct change b. Correct amount of net expenses