PROBLEM 2: FUND BALANCE TO NET ASSETS RECONCILIATION (20 PTS. a. The fund balances of Coastal City's governmental funds at December 31, Year 1, totaled $12,500,000. Subsidiary accounting records for the city include the following information: Capital assets used in governmental fund activities Accumulated depreciation on those capital assets Long-term debt (LTD) related to governmental fund activities Internal service fund net assets Fiduciary fund net assets Accrued interest payable, not legally due at December 31, Year 1 $3,000,000 700,000 ,800,000 420,000 1,500,000 200,000 related to governmental fund activities Deferred revenues, not "available and measurable" for Year 1, 60,000 related to Year 1 property tax levy ernment-wide statement of net position for Calculate the net position displayed in the gov governmental activities. SHOW WORK HERE ANSWER b. For Year 1, Crescent City displayed an increase in proprietary fund net position of $380,000 excess of revenues and other financing sources over expenditures and other financing uses for all governmental funds of $450,000. The government also maintained an internal service fund whose purpose was to provide maintenance services to general government buildings. The internal service fund had an increase in net position of $15,000. During the year, the governmental funds had the following: $500,000 350,000 45,000 14,000 75,000 190,000 Capital outlays Proceeds from long-term debt (LTD) issue Principal payments on LTD Interest expenditures on LTD Depreciation expense on governmental assets Proceeds from the sale of land (net book value $150,000) Calculate the increase (decrease) in net position displayed in the government-wide statement of activities for governmental activities. SHOW WORK HERE ANSWER PROBLEM 2: FUND BALANCE TO NET ASSETS RECONCILIATION (20 PTS. a. The fund balances of Coastal City's governmental funds at December 31, Year 1, totaled $12,500,000. Subsidiary accounting records for the city include the following information: Capital assets used in governmental fund activities Accumulated depreciation on those capital assets Long-term debt (LTD) related to governmental fund activities Internal service fund net assets Fiduciary fund net assets Accrued interest payable, not legally due at December 31, Year 1 $3,000,000 700,000 ,800,000 420,000 1,500,000 200,000 related to governmental fund activities Deferred revenues, not "available and measurable" for Year 1, 60,000 related to Year 1 property tax levy ernment-wide statement of net position for Calculate the net position displayed in the gov governmental activities. SHOW WORK HERE ANSWER b. For Year 1, Crescent City displayed an increase in proprietary fund net position of $380,000 excess of revenues and other financing sources over expenditures and other financing uses for all governmental funds of $450,000. The government also maintained an internal service fund whose purpose was to provide maintenance services to general government buildings. The internal service fund had an increase in net position of $15,000. During the year, the governmental funds had the following: $500,000 350,000 45,000 14,000 75,000 190,000 Capital outlays Proceeds from long-term debt (LTD) issue Principal payments on LTD Interest expenditures on LTD Depreciation expense on governmental assets Proceeds from the sale of land (net book value $150,000) Calculate the increase (decrease) in net position displayed in the government-wide statement of activities for governmental activities. SHOW WORK HERE
