Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The City of Wolfe has issued its financial statements for Year 4 (assume that the city uses a calendar year). The city's general fund is

The City of Wolfe has issued its financial statements for Year 4 (assume that the city uses a calendar year). The city's general fund is made up of two functions: (1) education and (2) parks. The city also utilizes capital projects funds for ongoing construction and an enterprise fund to account for an art museum. It also has one discretely presented component unit.

  1. The government-wide financial statements indicated the following Year 4 totals:
  2. Education had net expenses of $652,000.
  3. Parks had net expenses of $143,000.
  4. Art museum had net revenues of $73,750.
  5. General revenues were $960,250; the overall increase in net position was $239,000.
  6. The fund financial statements issued for Year 4 indicated the following:
  7. The general fund had an increase of $41,000 in its fund balance.
  8. The capital projects fund had an increase of $63,500 in its fund balance.
  9. The enterprise fund had an increase of $78,250 in its net position.
  10. Officials for Wolfe define "available" as current financial resources to be paid or collected within 60 days.

On the first day of the year, the City of Wolfe bought $22,250 of equipment with a 5-year life and no salvage value for its school system. It was capitalized but no other entries were ever made. The machine was monitored using the modified approach.

  1. Based on the information provided above, what was the correct overall change in the net position in the government-wide financial statements?
  2. What was the correct amount of net expenses for education in the government-wide statements?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Managerial Accounting

Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

4th Canadian edition

978-1259103261

More Books

Students also viewed these Accounting questions

Question

=+b) What were the factors and factor levels?

Answered: 1 week ago

Question

Food supply

Answered: 1 week ago

Question

Mortality rate

Answered: 1 week ago