Use the information in problem (40) to prepare the 2013 fund financial statements for the governmental funds and the proprietary funds. A statement of cash flows is not required. Assume that "available" is defined as within 60 days and that all funds are major. The General Fund is used for debt repayment.
In Problem 40
a. Decides to build a municipal park and transfers $70,000 into a capital projects fund and immediately expends $20,000 for a piece of land. The creation of this fund and this transfer were made by the highest level of government authority.
b. Borrows $110,000 cash on a long-term bond for use in creating the new municipal park.
c. Assesses property taxes on the first day of the year. The assessment, which is immediately enforceable, totals $600,000. Of this amount, $510,000 will be collected during 2013 and another $50,000 is expected in the first month of 2014. The remainder is expected about halfway through 2014.
d. Constructs a building in the park in (b) for $80,000 cash for playing basketball and other sports. It is put into service on July 1 and should last 10 years with no salvage value.
e. Builds a sidewalk around the new park for $10,000 cash and puts it into service on July 1. It should last for 10 years, but the city plans to keep it up to a predetermined quality level so that it will last almost indefinitely.
f. Opens the park and charges an entrance fee of only a token amount so that it records the park, therefore, in the General Fund. Collections during this first year total $8,000.
g. Buys a new parking deck for $200,000, paying $20,000 cash and signing a long-term note for the rest. The parking deck, which is to go into operation on July 1, is across the street from the civic auditorium and is considered part of that activity. It has a 20-year life and no salvage value.
h. Receives a $100,000 cash grant for the city school system that must be spent for school lunches for the poor. Appropriate spending of these funds is viewed as an eligibility requirement of this grant. During the current year, $37,000 of the amount received was properly spent.
i. Charges students in the school system a total fee of $6,000 for books and the like. Of this amount, 90 percent is collected during 2013 with the remainder expected to be collected in the first few weeks of 2014.
j. Buys school supplies for $22,000 cash and uses $17,000 of them. The General Fund uses the purchases method.
k. Receives a painting by a local artist to be displayed in the local school. It qualifies as a work of art, and officials have chosen not to capitalize it. The painting has a value of $80,000. It is viewed as inexhaustible.
l. Transfers $20,000 cash from the General Fund to the Enterprise Fund as a capital contribution.
m. Orders a school bus for $99,000.
n. Receives the school bus and pays an actual cost of $102,000. The bus is put into operation on October 1 and should last for five years with no salvage value.
o. Pays salaries of $240,000 to school teachers. In addition, owes and will pay $30,000 during the first two weeks of 2014. Vacations worth $23,000 have also been earned but will not be taken until July 2014.
p. Pays salaries of $42,000 to city auditorium workers. In addition, owes and will pay $3,000 in the first two weeks of 2014. Vacations worth $5,000 have also been earned but will not be taken until July 2014.
q. Charges customers $130,000 for the rental of the civic auditorium. Of this balance, collected $110,000 in cash and will collect the remainder in April 2014.
r. Pays $9,000 maintenance charges for the building and sidewalk in (d ) and (e).
s. Pays $14,000 on the bond in (b) on the last day of 2013: $5,000 principal and $9,000 interest.
t. Accrues interest of $13,000 on the note in (g) as of the end of 2013, an amount that it will pay in June 2014.
Assumes that a museum that operates within the city is a component unit that will be discretely presented. The museum reports to city officials that it had $42,000 of direct expenses this past year and $50,000 in revenues from admission charges. The only assets that it had at year-end were cash of $24,000, building (net of depreciation) of $300,000, and a long-term liability of $210,000.
Prepare the 2013 government-wide financial statements for this city. Assume the use of the modified approach.