Assume that the City of Coyote has produced Its financlal statements for December $31,2024,$ and the year then ended. The city's

general fund was only used to monitor education and parks. Its capltal projects funds worked in connection with each of these

functions at times during the current year. The city also malntalned an enterprise fund to account for its art museum.

The government$-$wide financlal statements provide the following figures:

Education reports net expenses of $$614,000.$

Parks reports net expenses of $$108,000.$

Art museum reports net revenues of $$71,750.$

General government revenues for the year were $$855,250$ with an overall increase in the city's net position of $$205,000.$

The fund financial statements provide the following for the entire year:

The general fund reports a $$41,250$ increase in its fund balance.

The capital projects fund reports a $$52,750$ increase in Its fund balance.

The enterprise fund reports a $$72,500$ increase in its net position.

The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during $2024$ 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.

During $2024,$ the CIty of Coyote contracts to bulld a bus stop for schoolchildren costing $$18,500$ as a special assessments project. The

city collects $$18,500$ from directly affected citizens. The government has no obligation in connection with this project. The city records

both a $$18,500$ revenue and a $$18,500$ expenditure in the capital projects fund. In preparing government$-$wide financlal statements,

the city records an asset and a general revenue for $$18,500.$

Required:

a$.$ In the general information, the capital projects fund reports a $$52,750$ increase in its fund balance for the year. What was the correct

change in the capital projects fund balance during $2024?$

b$.$ In the general information, a $$205,000$ overall increase in the city's net position was found on the government$-$wide financial

statements. What was the correct overall change in the city's net position on the government$-$wide financlal statements?