1. Simonsen Village has employees who earned $400,000 for the year. At the end of the year, the salaries payable balance was $10,000. Note that $200,000 of wages related to general government, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department. 2. Inventory was ordered by Simonsen Village. The entire order was received. The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6,000 of the inventory, but no payment had been made. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education. 3. Simonsen Village's major source of funds is real estate taxes. Total tax bills issued were for $300,000. Total collections were the $20,000 from the previous year's ending balance in taxes receivable and $260,000 of this year's taxes. Eighty percent of the outstanding balance at year-end is expected to be collected early in the next fiscal year. 4. Simonsen Village is entitled to receive unrestricted grants from the state. During the year, grants in the amount of $100,000 were made. The total collections on grants were just $20,000. This $20,000 consisted of $10,000 that the state owed for the previous year and $10,000 for the current year's grant. The state will be paying the balance owed to Simonsen Village within 30 days after the year ends. 5. During the year, Simonsen Village was legally required to transfer $60,000 to its debt service fund. A total of $70,000 of cash was paid to the debt service fund. In years when the full required transfer is not made, the debt service fund has a receivable (Due from General Fund). If more than the required amount is paid, the debt service fund's receivable declines. 6. Simonsen Village acquired a new fire truck early in the year for $200,000. The fire truck is expected to last 10 years and has no salvage value. It was financed by a long-term note for the full amount. Simonsen Village has a capital projects fund. 7. The interest and principal due on Simonsen Village's debt during the year and paid from the debt service fund were $8,000 and $30,000, respectively. The interest covers all long-term borrowing by Simonsen Village. The principal relates to the fire truck purchased during the year. Problem 13-8. For Simonsen Village (see Problems 12-4 and 12-5 from Chapter 12), prepare a government-wide statement of net position and statement of activities, and a governmental funds balance sheet and statement of revenues, expenditures, and changes in fund balances. Any ending balance in the Debt Service Fund is legally Capital Projects Fund Total Governmental Funds Simonsen Village Balance Sheet Governmental Funds As of December 31, 2018 Debt General Service Fund Fund Assets and deferred outflows of resources Cash Real estate taxes receivable, net State grants receivable Due from other funds 6.000 Total assets and deferred outflows $0 $6.000 of resources $ $0 $0 $0 6,000 $ $6,000 Liabilities, deferred inflows of resources, and fund balances Liabilities and deferred inflows of Accounts payable Salaries payable $ $ $0 $0 $0 Deferred tax revenue Due to debt service fund 6.000 $6,000 $6,000 $6,000 Total liabilities and deferred inflows of resources Fund Balances: Unassigned Total fund balances $0 $0 $0 $0 $6,000 $0 $ Total liabilities, deferred inflows of resources, and fund balances Reconciliation: Amounts reported for governmental activities in the statement of net position are different because: 8000 Taxes receivable that are not current financial resources are not included in fund balances above, but are included in net position in the statement of net position. Inventory is treated on a purchases basis in the funds. Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 4,000 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Net position of governmental activities $12.000 Simonsen Village Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds for the Year Ended December 31, 2018 Debt Capital Total General Service Projects Governmental Fund Fund Fund Funds Revenues Real estate taxes $0 Intergovernmental-grants 100.000 100.000 Total revenues $100.000 $100.000 $0 0 Expenditures Current: General government Education Public Works, Safety, & Sanitation Debt service: Principal Interest Capital outlay: 0 0 8.000 8.000 0 Total expenditures $0 $8.000 $0 $8.000 Excess of revenues over expenditures $100,000 ($8,000) ($200,000) ($108.000) $0 Other Financing Sources (Uses) Proceeds from long-term capital related debt Transfers in Transfers out Total other financing sources and uses 0 ($60.000) ($60.000) (60,000) ($60,000) $0 $0 Net change in fund balances Fund balances-beginning Fund balances-ending $40,000 $22.000 224.000 20.000 $264.000 $42.000 $0 0 $0 $62.000 244.000 $306,000 1. Simonsen Village has employees who earned $400,000 for the year. At the end of the year, the salaries payable balance was $10,000. Note that $200,000 of wages related to general government, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department. 2. Inventory was ordered by Simonsen Village. The entire order was received. The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6,000 of the inventory, but no payment had been made. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education. 3. Simonsen Village's major source of funds is real estate taxes. Total tax bills issued were for $300,000. Total collections were the $20,000 from the previous year's ending balance in taxes receivable and $260,000 of this year's taxes. Eighty percent of the outstanding balance at year-end is expected to be collected early in the next fiscal year. 4. Simonsen Village is entitled to receive unrestricted grants from the state. During the year, grants in the amount of $100,000 were made. The total collections on grants were just $20,000. This $20,000 consisted of $10,000 that the state owed for the previous year and $10,000 for the current year's grant. The state will be paying the balance owed to Simonsen Village within 30 days after the year ends. 5. During the year, Simonsen Village was legally required to transfer $60,000 to its debt service fund. A total of $70,000 of cash was paid to the debt service fund. In years when the full required transfer is not made, the debt service fund has a receivable (Due from General Fund). If more than the required amount is paid, the debt service fund's receivable declines. 6. Simonsen Village acquired a new fire truck early in the year for $200,000. The fire truck is expected to last 10 years and has no salvage value. It was financed by a long-term note for the full amount. Simonsen Village has a capital projects fund. 7. The interest and principal due on Simonsen Village's debt during the year and paid from the debt service fund were $8,000 and $30,000, respectively. The interest covers all long-term borrowing by Simonsen Village. The principal relates to the fire truck purchased during the year. Problem 13-8. For Simonsen Village (see Problems 12-4 and 12-5 from Chapter 12), prepare a government-wide statement of net position and statement of activities, and a governmental funds balance sheet and statement of revenues, expenditures, and changes in fund balances. Any ending balance in the Debt Service Fund is legally Capital Projects Fund Total Governmental Funds Simonsen Village Balance Sheet Governmental Funds As of December 31, 2018 Debt General Service Fund Fund Assets and deferred outflows of resources Cash Real estate taxes receivable, net State grants receivable Due from other funds 6.000 Total assets and deferred outflows $0 $6.000 of resources $ $0 $0 $0 6,000 $ $6,000 Liabilities, deferred inflows of resources, and fund balances Liabilities and deferred inflows of Accounts payable Salaries payable $ $ $0 $0 $0 Deferred tax revenue Due to debt service fund 6.000 $6,000 $6,000 $6,000 Total liabilities and deferred inflows of resources Fund Balances: Unassigned Total fund balances $0 $0 $0 $0 $6,000 $0 $ Total liabilities, deferred inflows of resources, and fund balances Reconciliation: Amounts reported for governmental activities in the statement of net position are different because: 8000 Taxes receivable that are not current financial resources are not included in fund balances above, but are included in net position in the statement of net position. Inventory is treated on a purchases basis in the funds. Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 4,000 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Net position of governmental activities $12.000 Simonsen Village Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds for the Year Ended December 31, 2018 Debt Capital Total General Service Projects Governmental Fund Fund Fund Funds Revenues Real estate taxes $0 Intergovernmental-grants 100.000 100.000 Total revenues $100.000 $100.000 $0 0 Expenditures Current: General government Education Public Works, Safety, & Sanitation Debt service: Principal Interest Capital outlay: 0 0 8.000 8.000 0 Total expenditures $0 $8.000 $0 $8.000 Excess of revenues over expenditures $100,000 ($8,000) ($200,000) ($108.000) $0 Other Financing Sources (Uses) Proceeds from long-term capital related debt Transfers in Transfers out Total other financing sources and uses 0 ($60.000) ($60.000) (60,000) ($60,000) $0 $0 Net change in fund balances Fund balances-beginning Fund balances-ending $40,000 $22.000 224.000 20.000 $264.000 $42.000 $0 0 $0 $62.000 244.000 $306,000