Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
The City of Wolfe issues its financial statements for Year 4 (assume that the city uses a calendar year). The city's general fund is composed 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. The city also has one discretely presented component unit. The government-wide financial statements indicate the following Year 4 totals Education had net expenses of $684,000 Parks had net expenses of $172,000. Art museum had net revenues of $69.750 General revenues were $990,250. The overall increase in net position for the city was $204,000. The fund financial statements for Year 4 indicate the following: The general fund had an increase of $46,250 in its fund balance The capital projects fund had an increase of $45,250 in its fund balance The enterprise fund had an increase of $84.750 in its net position balance. Officials for the City of Wolfe define available as current financial resources to be paid or collected within 60 days. On the first day of Year 4, the city receives a painting as a gift that qualifies as a work of art. It has an expected life of 30 years, is worth $18,000, and is displayed by the city at one of the local parks. The accountant accidentally capitalizes and depreciates it although officials wanted to use the allowed alternative Respond to the following questions: a. According to the information provided the general fund reported a $46,250 increase in its fund balance. If the accountant had used the allowed alternative, what would the city report as the change in fund balance for the general fund for the year? b. According to the information provided, the parks reported net expenses of $172,000. If the accountant had used the allowed alternative, what would the city report as the correct net expense for parks for the year? c. Assume the same information except that the art was given to the art museum but then not recorded at all. What should have been the overall change in net position for Year 4 on government-wide financial statements, assuming that officials still preferred the allowed alternative? a b The change in fund balance for the general fund is Net expense for parks for the year is The overall change in net position for year 4 is

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_2

Step: 3

blur-text-image_3

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

A Blueprint For Lean Audit Lead Your Company To Higher Performance Levels

Authors: Maurice Washpun

1st Edition

B09R3DSLFF, 979-8408643707

More Books

Students also viewed these Accounting questions

Question

Define and apply the components in hypothesis testing

Answered: 1 week ago

Question

Does it avoid using personal pronouns (such as I and me)?

Answered: 1 week ago

Question

Does it clearly identify what you have done and accomplished?

Answered: 1 week ago