Governmental and Nonprofit Accounting Eleventh Edition: Chapter 13 - Harvey City Comprehensive Case.
Financial Reporting Comprehensive Case Harvey City must now prepare its basic financial statements. In addition to the Addiction Prevention Special Revenue Fund and the Economic Development Special Revenue Fund, Harvey City has two other Special Revenue Funds. Likewise, the city has one Capital Projects Fund not presented earlier in Chapter 7). The December 31, 20X4, preclosing trial balances for these three funds are presented here so that you can use this information in completing the requirements of Chapters 13 through 15. At this time, we will prepare the fund financial statements using the data from the trial balances and from the worksheets and financial statements that we prepared in Chapters 4 through 12. REQUIREMENTSHARVEY CITY FUND FINANCIAL STATEMENTS a. Identify Harvey City's major funds, assuming that the city will not use management discretion to identify any fund as major. b. Prepare Harvey City's governmental funds financial statements for 20X4, including any required budgetary comparison statements. Prepare Harvey City's proprietary funds financial statements for 20X4. d. Prepare Harvey City's fiduciary funds financial statements for 20X4. c. Harvey City Additional Governmental Funds Preclosing Trial Balances December 31, 20X4 Tourism Development Midtown Corridor Special Revenue Special Revenue Fund Fund Debit Credit Debit Credit 57,000 $22,000 16,000 3,000 1,500 $ 8,500 $ 4,500 1,000 Veterans Memorial Park Capital Projects Fund Debit $120,000 250,000 Accounts Credit Cash..... $125,000 61,200 5,500 243,500 Investments Inventory of Materials and Supplies.. Vouchers Payable...... Accrued Salaries and Wages Payable Contracts Payable-Retained Percentage Fund Balance (Preclosing -- All restricted) Revenue: Taxes Investment Income Current Operating Expenditures/Expenses: Economic Development. Other...... Capital Outlay Expenditures: For Equipment..... Governmental Funds --- Totals 25,000 135,000 1,300 1,500 127,800 11,500 3,200 $207,000 $207,000 $35,000 $35,000 $370,000 $370,000 Both the Tourism Development Special Revenue Fund and the Midtown Corridor Special Revenue Fund are financed with restricted portions of the city's hotel/motel occupancy tax, The Veterans Memorial Park Capital Projects Fund had no activity during the year because a citizens committee was addressing design issues and preparing a major campaign to raise private contributions for the park. (Solution Hint) Remember that only certain types of funds are reported using major fund reporting. The fund types for which major fund reporting is not allowed are the Inter Service Funds and the fiduciary funds. Recall that the data from these funds are not used in computing the thresholds for being a major fund based on size. Financial Reporting Comprehensive Case Harvey City must now prepare its basic financial statements. In addition to the Addiction Prevention Special Revenue Fund and the Economic Development Special Revenue Fund, Harvey City has two other Special Revenue Funds. Likewise, the city has one Capital Projects Fund not presented earlier in Chapter 7). The December 31, 20X4, preclosing trial balances for these three funds are presented here so that you can use this information in completing the requirements of Chapters 13 through 15. At this time, we will prepare the fund financial statements using the data from the trial balances and from the worksheets and financial statements that we prepared in Chapters 4 through 12. REQUIREMENTSHARVEY CITY FUND FINANCIAL STATEMENTS a. Identify Harvey City's major funds, assuming that the city will not use management discretion to identify any fund as major. b. Prepare Harvey City's governmental funds financial statements for 20X4, including any required budgetary comparison statements. Prepare Harvey City's proprietary funds financial statements for 20X4. d. Prepare Harvey City's fiduciary funds financial statements for 20X4. c. Harvey City Additional Governmental Funds Preclosing Trial Balances December 31, 20X4 Tourism Development Midtown Corridor Special Revenue Special Revenue Fund Fund Debit Credit Debit Credit 57,000 $22,000 16,000 3,000 1,500 $ 8,500 $ 4,500 1,000 Veterans Memorial Park Capital Projects Fund Debit $120,000 250,000 Accounts Credit Cash..... $125,000 61,200 5,500 243,500 Investments Inventory of Materials and Supplies.. Vouchers Payable...... Accrued Salaries and Wages Payable Contracts Payable-Retained Percentage Fund Balance (Preclosing -- All restricted) Revenue: Taxes Investment Income Current Operating Expenditures/Expenses: Economic Development. Other...... Capital Outlay Expenditures: For Equipment..... Governmental Funds --- Totals 25,000 135,000 1,300 1,500 127,800 11,500 3,200 $207,000 $207,000 $35,000 $35,000 $370,000 $370,000 Both the Tourism Development Special Revenue Fund and the Midtown Corridor Special Revenue Fund are financed with restricted portions of the city's hotel/motel occupancy tax, The Veterans Memorial Park Capital Projects Fund had no activity during the year because a citizens committee was addressing design issues and preparing a major campaign to raise private contributions for the park. (Solution Hint) Remember that only certain types of funds are reported using major fund reporting. The fund types for which major fund reporting is not allowed are the Inter Service Funds and the fiduciary funds. Recall that the data from these funds are not used in computing the thresholds for being a major fund based on size
