Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 $622,000. - Parks reports net expenses of $105,000. - Art museum reports net revenues of $54,750. - General government revenues for the year were $881,250 with an overall increase in the city's net position of $209,000. The fund financial statements provide the following for the entire year: - The general fund reports a $51,750 increase in its fund balance. - The capital projects fund reports a $60,250 increase in its fund balance. - The enterprise fund reports a $62,500 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. The City of Coyote mails property tax bills for 2021 to its citizens during August 2020. Property owners could make payments early to recelve a discount. The levy becomes legally enforceable on February 15, 2021. All money received by the city must be spent during 2021 or later. The total assessment is $348,000. Of that amount, the city collects 30 percent, less a 10 percent discount, in 2020 . The city expects to receive all of the remaining money during 2021 with no discount. During 2020 , the government increases cash as well as revenue for the amount recelved. No change was made in creating government-wide financial statements. a. What is the correct overall change in the city's net position as should be shown on the government-wide financial statements? b. What is the correct change for 2020 in the fund bolance reported for the city's general fund

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Client Acceptance And Retention Decisions Of Audit Firms In Nigeria

Authors: Richard Iyere Oghuma

1st Edition

6138946715, 978-6138946717

More Books

Students also viewed these Accounting questions

Question

What Is acidity?

Answered: 1 week ago

Question

Explain the principles of delegation

Answered: 1 week ago

Question

State the importance of motivation

Answered: 1 week ago

Question

Discuss the various steps involved in the process of planning

Answered: 1 week ago

Question

What are the challenges associated with tunneling in urban areas?

Answered: 1 week ago