PROBLEM 10

Following is the government-wide adjusted trial balance for the Town as of June 30, 20XX, the end of the fiscal year. The adjustments needed to convert accounting information from the current financial resources measurement focus and modified accrual basis of accounting to the economic resources measurement focus and accrual basis of accounting have been made.

The Town government performs three functions, general government, public safety and roads and bridges. The Town has no business-type activities nor any component units. Program revenues include charges for services (related to the general government and public safety functions), operating grants (for public safety) and capital grants (for roads and bridges). General revenue sources are property taxes, other taxes, investment revenues, and miscellaneous revenues.

Using this information, prepare in good form (a) the government-wide statement of net position (using a classified format), and (b) the government-wide statement of activities as of, and for the year ended, June 30, 20XX. There are no restricted assets or liabilities; the long-term debt (both portions) is the only debt related to the Towns capital assets.

Town Of Monterra
Government-Wide Adjusted Trial Balance
June 30, 20XX
Cash and investments	$590,000
Taxes receivable, net	5,540,000
Accounts receivable, net	190,000
Inventories	77,600
Other assets	16,900
Capital assets	20,254,000
Accumulated depreciation, capital assets		$9,500,000
Accounts payable		76,500
Deferred revenues		150,000
Current portion of long-term debt		25,250
Noncurrent portion of long-term debt		1,120,250
Net position		11,000,000
Revenuesproperty taxes		5,520,000
Revenues--other taxes		2,300,000
Investment revenues		84,500
Miscellaneous revenues		52,000
Program revenuescharges for servicesgeneral government		557,000
Program revenuescharges for servicespublic safety		50,000
Program revenuespublic safetyoperating grants		250,000
Program revenuesroads and bridgescapital grants		2,090,000
General government expenses	1,500,000
Public safety expenses	2,500,000
Roads and bridges expenses	2,080,000
Interest expense on long-term debt	27,000
Totals	$32,775,500	$32,775,500