REQUIREMENTS Determine whether Harvey Citys Internal Service Fund should be reported as part of governmental activities or as part of business-type activities in the government-wide financial statements.

Prepare the worksheets to derive the governmental activities data for Harvey Citys government-wide financial statements. (The worksheets should be similar to those in Illustrations 14-9 and 14-12.) The total column of Harvey Citys governmental funds financial statements should be the starting point for your worksheet. Additional information that may be required and selected information from prior chapters (included to refresh your memory of pertinent information) are also presented.

Prepare the year end 20X4 government-wide Statement of Net Position for Harvey City.

Prepare the 20X4 government-wide Statement of Activities for Harvey City.

Prepare the reconciliation of the total fund balances of governmental funds to net position of governmental activities.

Prepare the reconciliation of the change in fund balances of governmental funds to the change in net position of governmental activities.

ADDITIONAL INFORMATION Seventy-five percent of licenses and permits revenues were associated with public safety, and the remainder was associated with health and sanitation.

All fines and forfeitures revenues were derived from the public safety function.

General Fund deferred tax revenues at January 1, 20X4, amounted to $79,100. General Fund deferred interest and penalties revenues at January 1, 20X4, amounted to $20,900. (See General Fund transaction number 24 in Chapter 5.)

General Debt Service Fund deferred tax revenues at January 1, 20X4, were $43,100. General Fund deferred interest and penalties revenues at January 1, 20X4, were $6,900. (See General Debt Service Fund transaction number 8 in Chapter 8.)

All Special Revenue Fund assets are restricted except for $60,000 of unrestricted assets in the Addiction Prevention Special Revenue Fund.

The lawsuit in General Fund transaction number 28 in Chapter 6 is associated with a parks and recreation employee.

Investment income of $62,000 in the Economic Development Special Revenue Fund was earned from temporary investment of unexpended grant proceeds. (Transaction 3 from Chapter 6 for that fund indicates that the grant requires all investment income from the investment of grant proceeds to be used for economic development.)

Except for $200,000 that is unrestricted, all of the fund balance of the Parks and Recreation Capital Projects Fund is restricted for the project.

All of the assets of the General Debt Service Fund are restricted solely for debt service on general long-term debt.

Review the information under Additional Transactions and Events for the General Capital Assets and General Long-Term Liabilities accounts in Chapter 9 to determine the functions to which depreciation must be assigned and to which the compensated absences liabilities relate. Hint: Because the Central Communications Network Internal Service Fund primarily serves governmental funds, the capital assets of this ISF are included in the governmental activities information on the government-wide financial statements and in the governmental activities (GCA and GLTL) note disclosures. The depreciation expense is allocated between governmental activities and business-type activities$5,357 and $3,013, respectively. The Communications ISF equipment depreciation related to governmental activities by function is presented as follows:

Function Machinery

General government $ 428

Public safety 2,304

Highways and streets 1,393

Health and Sanitation 696

Parks and Recreation 402

Economic development 134

Total $5,357

Amortization of bond premiums totaled $14,580 during the year, including amortization of $11,250 of the premium on the original city hall bonds before they were defeased. The accrued interest payable on bonds at the end of 20X4 was $580,000. The January 1, 20X4, balance of accrued interest payable on bonds was $480,000.

The equipment purchase in the Tourism Development Special Revenue Fund (Chapter 13) occurred at year end.