Chapter 18 – Governmental Entities: Special Funds and Government–Wide Financial Statements
E18-8 (continued)
c.
Augusta
MUD Enterprise Fund
Statement of Revenue, Expenses, and
Changes in Fund Net Position
For Fiscal Year Ended December 31, 20X1
Revenue:
Revenue from Services
$413,700
Expenses:
Operating
$328,000
Depreciation
32,000
Supplies
15,200
375,200
Operating Income
$ 38,500
Nonoperating Expense:
Less: Interest on Capital-Related Debt
30,000
Change in Net Position
$ 8,500
Net Position, January 1
130,000
Net Position, December 31
$138,500
[Note that interest expense on capital-related debt is a non-operating expense.]
Chapter 18 – Governmental Entities: Special Funds and Government–Wide Financial Statements
Copyright © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded,
distributed, or posted on a website in whole or part.
SOLUTIONS TO PROBLEMS
P18-12 Adjusting Entries for General Fund [AICPA Adapted]
Adjusting entries to correct the general fund:
1.
No entry required.
2.
Expenditures
300,000
Buildings
300,000
Correct for state grant expended for buildings.
Expenditures
22,000
Capital Outlays (equipment)
22,000
Correct for expenditures for playground equipment.
3.
Bonds Payable
1,000,000
Buildings
1,000,000
Correct for bonds used to construct buildings.
Other Financing Uses – Transfer
Out to Debt Service Fund
130,000
Debt Service from Current Funds
130,000
Correct for transfer to debt service fund.
4.
ENCUMBRANCES
2,800
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
2,800
Correct for unrecorded encumbrances.
5.
Expenditures
4,950
Inventory of Supplies
4,950
Correct for supplies used in period.
Fund Balance – Unassigned
6,500
Fund Balance – Assigned for Inventory
6,500
Correct for reserve for ending inventory.
Copyright © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded,
distributed, or posted on a website in whole or part.
Fund
Journal Entries
1.
General
ESTIMATED REVENUES CONTROL
400,000
Fund
APPROPRIATIONS CONTROL
394,000
BUDGETARY FUND BALANCE – UNASSIGNED
6,000
2.
General
Taxes Receivable – Current
390,000
Fund
Revenue – Taxes
382,200
Allowance for Uncollectibles – Current
7,800
3.
Private-
Investments
50,000
Purpose
Contributions
50,000
Trust Fund
Cash
5,500
Additions – Interest
5,500
4.
General
Other Financing Uses – Transfer
Out to Internal Service Fund
5,000
Cash
5,000
Internal
Cash
5,000
Service
Transfer In from General Fund
5,000
Fund
5.
Capital
Cash
72,000
Projects
Other Financing Sources – Bond Issue
72,000
Due from General Fund
3,000
Other Financing Sources –
Transfer In from General Fund
3,000
Debt
Special Assessments Receivable
24,000
Service
Revenue – Special Assessments
24,000
Fund
General
Other Financing Uses – Transfer
Out to Capital Projects Fund
3,000
Due to Capital Projects Fund
3,000
6.
General
Due to Capital Projects Fund
3,000
Fund
Cash
3,000
Capital
Cash
3,000
Projects
Due from General Fund
3,000
Fund
Debt
Cash
24,000
Service
Special Assessments Receivable
24,000
Fund