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Problem 16-55 (LO 16-2, 16-4, 16-5) Assume that the City of Coyote has already produced its financial statements for December 31, 2017, and the year

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Problem 16-55 (LO 16-2, 16-4, 16-5) Assume that the City of Coyote has already produced its financial statements for December 31, 2017, and the year then ended. The city's general fund was only for education and parks. Its capital projects funds worked with each of these functions at times during the current year. The city also had established an enterprise fund to account for its art museum. The government-wide financial statements indicated the following figures: Education reported net expenses of $698,000. Parks reported net expenses of $113,000. Art museum reported net revenues of $59,250. General government revenues for the year were $977,750 with an overall increase in the city's net position of $226,000. The fund financial statements indicated the following for the entire year: The general fund reported a $47,750 increase in its fund balance. The capital projects fund reported a $45,500 increase in its fund balance. The enterprise fund reported a $61,500 increase in its net position. The CPA firm of Abernethy and Chapman has been asked to review several transactions that occurred during 2017 and indicate how to correct any erroneous reporting and the impact of each error. View each of the following situations as independent. An art display set up for the City of Coyote was recorded within the general fund and generated revenues of $10,750 but had expenditures of $56,050 ($18,250 in expenses and $37,800 to buy land for the display). The CPA firm has determined that this program should have been recorded as an enterprise fund activity because it was offered in association with the art museum. a. Based on the information provided, what was the correct change in the fund balance for the general fund for 2017? b. What was the correct overall change in the city's net position on the government-wide financial statements? c. What was the correct change in the net position of the enterprise fund on the fund financial statements? a. Correct change b. Correct change c. Correct change

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