The newly created State Recreation District established the following funds, each of which is a separate fiscal and accounting entity(general fund , debt service fund and capital project fund.A summary of the districts firstyear transactions follows (all dollar amounts in millions).

1. It levies taxes of $37000, of which it collects $31000. It expects to collect the remaining shortly after yearend.

2. It incurs $16000 in general operating expenditures, of which it pays 8000.

3. It issues longterm bonds of $8000. The bonds must be used to finance the acquisition of recreational facilities (equipment).

4. The district acquires $6000 of recreational facilities using the resources available in the capital projects fund. useful life 10 years

5. The district transfers $2400 from the general fund to the fund specially created to account for resources restricted for debt service.

6. The debt service fund paid the first installment on bonds 2200 which includes 200 for interest and 2000 for the principal

7. The repair service (ISF) acquires $4000 of equipment, giving a longterm note in exchange (useful life of equipment 10 years).

8. The repair service bills the general fund for $3000 and collects 2900, remaining on account. The (ISF) incurs cash operating expenses of $2700 and recognizes depreciation ON equipment.

Required:

1. Prepare a governmentwide statement of activities (statement of revenues and expenses) ?

2. Prepare a governmentwide statement of net position (balance sheet) ?

Answer :

1. The governmentwide statement of activities (statement of revenues and expenses :

Revenues :

Total revenues :

Less : expenses :

..

..

.

Total expenses :

Excess;

2. The governmentwide statement of net position (balance sheet):

Assets ; Liabilities:

$.......... .

.

.

Total liabilities

Fund balance

Total assets Total liabilities and fund balance