Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e
35. (65 Minutes) (Prepare financial statements for government-wide financial statements and fund financial
statements)
a. CITY OF WILLIAMSON
STATEMENT OF ACTIVITIES
For Year Ended December 31, 2017
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental activities
General Revenues:
Property taxes $401,000 $401,000
Franchise taxes 42,000 42,000
Investments (gain) 13,000 13,000
Total general revenues $456,000 $456,000
Change in net position 195,000 195,000
17–27
35. a. (continued)
Computations:
General Governmental [$66,000 + 11,000 + 21,000 + 8,000 + 4,000 (salaries
payable) + 13,000 (compensated absences) + 14,000 (art work) + 12,000
(depreciation on building: $120,000/10 years)] = $149,000
CITY OF WILLIAMSON
STATEMENT OF NET POSITION
December 31, 2017
Governmental Business-type
Activities Activities Total
Inventories 3,000 3,000
Capital assets (net) 172,000 172,000
Total assets 423,000 $423,000
Liabilities
Salaries payable 19,000 19,000
Invested in capital assets,
net of related debt (24,000) (24,000)
Unrestricted (deficit) 219,000 219,000
Total net position $195,000 $195,000
17–28
Education.
35. (continued)
b.
CITY OF WILLIAMSON
STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES IN
FUND BALANCES
Governmental Funds
For Year Ended December 31, 2017
Revenues: General Fund Total Government Funds
Property Taxes $401,000 $401,000
Franchise Taxes 42,000 42,000
General Government $110,000 $110,000
Public Safety 90,000 90,000
Total expenditures $474,000 $474,000
Excess (Deficiency) of
Revenues over Expenses 32,000 32,000
Other Financing Sources:
Proceeds from Long-term Note 200,000 200,000
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e
35. b. (continued)
CITY OF WILLIAMSON
BALANCE SHEET
Governmental Funds
December 31, 2017
Total
General Fund Governmental Funds
Assets
Cash and cash equivalents $ 62,000 $ 62,000
Prepaid expenses 2,000 2,000
Fund Balances
—Nonspendable 5,000 5,000
—Committed for Equipment 12,000 12,000
—Unassigned 215,000 215,000
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e
17–31
36. a. (continued)
Computations:
General Governmental [$90,000 + 9,000 + 25,000 + 12,000 + 14,000 (salaries
payable) + 30,000 depreciation] = $180,000
Public Safety [$94,000 + 16,000 + 12,000 + 10,000 + 17,000 (salaries
Landfill [260,000 x 15%] = $39,000
CITY OF BERNARD
STATEMENT OF NET POSITION
December 31, 2017
Governmental
Activities Totals
Assets
Current Assets:
Cash and Cash
Receivables (net) 120,000 120,000
Supplies 6,000 6,000
Total Current Assets 387,000 387,000
Equipment (net of depreciation) 81,000 81,000
Truck $64,000 $64,000
Total Assets $971,500 $971,500
17–32
Education.
Salaries Payable $36,000 $36,000
Noncurrent Liabilities:
Bank Loan Payable $64,000 $64,000
Closure Liability Landfill 39,000 39,000
Net Position
Invested in Capital Assets,
Net of Related Debt 154,500 154,500
17–33
Education.
36. (continued)
b.
CITY OF BERNARD
STATEMENT OF REVENUES, EXPENDITURES, AND OTHER CHANGES
IN FUND BALANCES – Governmental Funds
For Year Ended December 31, 2017
General Fund
Revenues:
Property taxes $630,000
Grant 25,000
Investments (realized gain) 14,000
Investments (unrealized gain) 5,000
Total $859,000
Expenditures:
Current:
Health and sanitation 37,000
Debt Service:
Principal payment on debt 10,000
Interest on debt 42,000
Capital Outlay:
Excess (deficiency) of revenues
over expenses) $(15,000)
Other Financing Sources:
Proceeds from long-term note 200,000
Proceeds from bank loan 64,000
36. b. (continued)
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e
neither asset nor fund balance has yet been recorded for the $12,000 amount still
held at the end of the year. Those balances are recorded at year-end. This
recording increases the assets by that amount as well as the fund balance
classified as nonspendable.
CITY OF BERNARD
BALANCE SHEET
Governmental Funds
December 31, 2017
General Fund
ASSETS
Supplies 6,000
Prepaid Insurance 6,000
—Nonspendable $12,000
—Restricted for Salaries 3,000
—Committed for Equipment and Supplies 31,000
—Unassigned 305,000 $351,000
Total Liabilities and Fund Balance $387,000
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e
37. (continued)
h.
Governmental Activities—Education
Cash 100,000
Unearned Revenues 100,000
Expenses—School Lunches 37,000
Receivables—School Fees 600
Program Revenues—School Fees 6,000
j.
Governmental Activities—Education
Supplies 22,000
Cash 22,000
l.
Governmental Activities—General
Transfers 20,000
Cash 20,000
Business-Type Activities—Civic Auditorium
Cash 20,000
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e
17–37
Education.
37. (continued)
n.
Governmental Activities—Education
School Bus 102,000
Cash 102,000
o.
Governmental Activities—Education
p.
Business-Type Activities—Civic Auditorium
Expenses—Salaries 45,000
Expenses—Vacations 5,000
Cash 42,000
Salary Payable 3,000
r.
Governmental Activities—Parks and Recreation
Expenses—Maintenance 9,000
Cash 9,000
s.
Governmental Activities—Parks and Recreation
Expenses—Interest 9,000
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e
37. (continued)
No entries are needed for the financial information from the museum. The
totals for the period are provided for reporting purposes.
Also:
Depreciation Entries:
(Building—$80,000/10 x ½)
Expenses—Depreciation 4,000
Accumulated Depreciation 4,000
Business-Type Activities—Civic Auditorium
($600,000/30)
Accumulated Depreciation 5,100
Business-Type Activities—Parking Deck
($200,000/20 x ½)
Expenses—Depreciation 5,000
Accumulated Depreciation 5,000
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e
17–39
Education.
37. (continued)
City of Pfeiffer
Statement of Activities
Government-Wide Financial Statements
Year ending December 31, 2017
—Parks and Recreation 22,000 8,000 ( 14,000) ( 14,000)
Total for
Governmental
Activities $504,100 $14,000 $117,000 $(373,100) $(373,100)
Business-Type Activities
General Revenues
—Property Taxes 600,000 600,000
Transfers (20,000) 20,000 -0-
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e
37. (continued)
City of Pfeiffer
Statement of Net Position
Government-Wide Financial Statements
December 31, 2017
Governmental Business-Type Component
Activities Activities Total Unit
Assets:
—Cash $302,400 $130,000 $432,400 $24,000
—Property Tax Receivables 90,000 -0- 90,000 -0–
—Receivables-School Fees 600 -0- 600 -0-
—Rent Receivable -0- 20,000 20,000 -0-
—Supplies 5,000 -0- 5,000 -0-
—Land 20,000 -0- 20,000 -0-
Liabilities:
—Salary Payable $30,000 $3,000 $33,000 -0-
—Vacation Payable 23,000 5,000 28,000 -0–
—Interest Payable -0- 13,000 13,000 -0-
—Unearned Revenues (*) 63,000 -0- 63,000 -0-
—Unrestricted 282,000 142,000 424,000 24,000
Total Net Position $1,329,900 $724,000 $2,053,900 $ 114,000
(*) The unearned revenue is a liability and not a deferred inflow of resources
because an action is required rather than the simple passage of time.
Education.
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e
38. (continued)
g.
Enterprise Fund
Parking Deck 200,000
Cash 20,000
Notes Payable 180,000
h.
Unearned Revenues 37,000
Revenues—Operating Grant 37,000
i.
General Fund
Cash 5,400
Receivables—School Fees 600
l.
General Fund
Other Financing Uses—Transfer 20,000
Cash 20,000
Enterprise Fund
Cash 20,000
38. (continued)
m.
General Fund
Encumbrances – School Bus 99,000
Encumbrances Outstanding 99,000
n.
Cash 110,000
Rent Receivable 20,000
Program Revenues—Rent 130,000
r.
General Fund