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

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 $618,000. Parks had net expenses of $115,000. Art museum had net revenues of $65,250 General revenues were $832,750. The overall increase in net position for the city was $165,000. The fund financial statements for Year 4 indicate the following: The general fund had an increase of $52,750 in its fund balance. The capital projects fund had an increase of $57,250 in its fund balance. The enterprise fund had an increase of $79,500 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. Assume that the one component unit had program revenues of $32,000 and expenses of $47,000 and spent $17,100 for land during Year 4. However, it should have been handled as a blended component unit, not as a discretely presented component unit. According to the information provided, the overall increase in net position reported was $165,000. What was the correct overall change in the net position in the government-wide financial statements? The correct overall change in net position 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

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

Financial Accounting For Non Specialists

Authors: Catherine Gowthorpe

2nd Edition

1844802051, 978-1844802050

More Books

Students also viewed these Accounting questions

Question

7.3 Describe considerations in the preliminary applicant screening.

Answered: 1 week ago

Question

7.2 Explain the selection process.

Answered: 1 week ago