could somebody help me double check my work and show me what I have wrong? thank you
The City of Pfeiffer starts the year of 2020 with the general fund and an enterprise fund. The general fund has two activilies, educationi and parks/recreation. For convenience, assume that the general fund holds $123,000 cash and a new school bullding costing $1 million. The city utilizes straight-line depreciation. The building has a 20 -year life and no residual value. The enterpise fund has $62.000 cash and a new $600.000 clvic auditorium with a 30 -year life and no residual value. The enterprise fund monitors one activity, the rental of the civic auditorlum for entertainment and other cultural affairs. The following transactions for the city take place during 2020. Assume that the citys fiscal year ends on December 31 . a. Decides to build a municipal park and transfers cash of $70.000 into a capital projects fund. Both the creation of this fund and the transfer were made by the highest level of government authority. The city immediately expends $20,000 to acquire three acres of land. b. Borrows $110,000 cash on a long-term bond for use in creating the new municipal park: c. Assesses property taxes on the first day of the year. The assessment, which is imnedlately enforceable, totals 5600.000.0 or this amount, $510.000 will be collected during 2020. Orficials expect another $50,000 during the first month of 2021 . They anticipate the remalnder halfway through 2021 . d. Constructs a covered building in the new municipal park for $80,000 cosh so that local clizens can play baskelball when it rains. The building is put into service on July 1 . It shoild last 10 years with no expected residual value. e. Builds a sidewalk through the new park for $10000 cash and puts if into service on July 1. The sidewalk should normally last for 10 . years, but the city plans to keep it fixed up to a predetermined qua ity level so that it can fast almost indefinitely. t. Opens the park and charges an entrance fee of only a token amount. The city reports the park within its general fund. Collections during the first year of operations total $8.000. 9. Buys a new parking deck for $200.000, paying $20.000 cash and signing a long-term note for the rest. The parking deck, which goes into operation on July 1,15 across the street from the civic auditorium and is considered part of that activity. It has a 20 -ycail liss and no residual value. h. Recelves a $100,000 cash grant for the city school system that must be spent for school lunches for chikdren in low income farmilles Ofticlals view the appropriate spending of these funds as an eligibifity requirement of this grant. During the current year, $37000 of the amount recelved was spent for the intended purposie. the amount received was spent for the intended purpose. 1. Charges students in the school system a total fee of $6.000 for books and the like. Of this amount, 90 percent is collected dualing 2020 with the remainder expected to be collected in the first few weeks of 2021. 1. Buys school supplies for $22.000 cash and uses $17,000 of them. The general fund applles the purchases method. k. Receives a painting by a local artist to be displayed in the local school, It qualifies as a work of art, and officials have chosen not to capitalize it. The painting has a value of $80.000. Officlals have set up security precautions so that the painting will be viewed inexhaustible. 1. Transfers $20.000 cash from the general fund to the enterpilse fund as a capital contribution. m. Orders a school bus for $99,000. n. Recelves the school bus and pays an actual cost of $102,000, including transportation and other necessary costs. The bus goes Into operation on October 1 . It should last for five years with no residual value. o. Pays salaries of $240,000 to school teachers. In addition, owes and will pay $30.000 during the first two weeks of 202t Vications worth $23.000 have also been earned by the teachers but will not be taken until July 2021. p. Pays salaries of $42,000 to city auditorium workers. In addition, owes and will pay $3,000 in the first two weeks of 2022 Vacations worth $5,000 have also been earned by the workers but will not be taken until July 2021 . q. Charges customers $130,000 for short-term rental of the civic auditorium. Of this balance, collects $110,000 in cash and will collect the remainder in April 2021. r. Pays $9.000 maintenance charges for the bulding and sidewalk in (d) and (e). 5. Pays $14.000 on the bond in (b) on the last day of 2020: $5.000 principal and $9,000 interest: t. Accrues interest of $13.000 on the note in (9) as of the end of 2020 , an amount the city will pay in June 2021. u. Assumes a museum operating within the city is a component unit that will be discretely presented. The museum reports to dity officials that it incurred $42,000 of direct expenses this past year and earned $50,000 in revenues from admission charges ine, Prepare the 2020 fund financial statements for (a) the governmental funds and (b) the proprietayy funds. A statement of cash Alsws not required. Assume the city defines "avaliable" as within 60 days and that ail funds qualli as a doed Assume that labeled as "Special Revenue Fund" and "Capital Projects Fund." The generai iur CITY OF PFEIFFER Balance Sheet Fund Financial Statements - Governmental Funds Building 1 mil. 20 yr sl deprec
