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Net Position
Invested in capital assets, net of related debt 1,200,000
Requirement c (reconciliation of funds balance sheet to government-wide statement of net assets
Total fund balance, fund balance sheet 185,000
Amounts reported in statement of net position are different because:
P10-5 (15 minutes)
Journal entries for fund financial statements:
Item 1. Expenditures – salaries 25,000
Item 2. Expenditures – vacation pay 3,000
Item 3. Expenditures – judgments and claims 2,000
Item 2. Expenses – vacation pay 14,000
Item 3. Expenses – judgments and claims 10,000
Item 4. Expenses – pensions 18,000
CONTINUING PROBLEM 1
1. Journal entries to convert fund financial statements to government-wide financial statements.
Transaction references are to items in Parts of Continuing Problem 1, chapter 9.
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a. Deferred property tax revenues 10,000
Revenues – property taxes 10,000
d. Buildings 500,000
Expenditures – capital outlay 500,000
e. Bonds payable 25,000
g. Interest expense 7,125
Interest payable 7,125
h. Transfers in 45,000
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Work sheet for preparing government-wide financial statements
Aggregated balances
Fund statements
Adjusted balances
Debit
Credit
Debit
Credit
Debit
Credit
Cash
28,000
28,000
Deferred property tax revenues
10,000
a. 10,000
b. 4,000
4,000
g. 7,125
7,125
e. 25,000
c.500,000
475,000
Fund balance- beginning
5,000
5,000
Revenues
391,000
a. 10,000
401,000
74,000
74,000
Parks admission fees
18,000
18,000
331,000
331,000
Culture and recreation
75,000
75,000
Debt service interest
15,000
g. 7,125
22,125
500,000
d.500,000
Depreciation expense
f. 10,000
10,000
Judgments, claims expenses
b. 4,000
4,000
Proceeds from cap.-rel. debt
500,000
c.500,000
45,000
h. 45,000
45,000
h. 45,000
Totals
Notes for preparing government-wide statements:
1. Add depreciation expense to public safety program to show total program expense.
2. Add judgments, claims expenses to public safety to show total program expense.
3. Treat parks admissions fees as a program revenue of the culture and recreation program.
4. Separate current portion from bonds payable.
5. Separate net position into components
Property taxes rec. – delinquent
31,000
31,000
Sales taxes receivable
6,000
6,000
Buildings
d.500,000
Accumulated depreciation
f. 10,000
10,000
Salaries payable
13,000
13,000
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Government-Wide Statement of Net Position
Coco City
Statement of Net Position
December 31, 2013
—————–Primary Government————
Governmental Business-type
Activities Activities Total
Assets
Current assets:
Cash $ 28,000 $ 3,000 $ 31,000
Noncurrent assets:
Capital assets 500,000 600,000 1,100,000
Liabilities
Current liabilities:
Salaries payable 13,000 13,000
Interest payable 7,125 7,125
Net Position
Invested in capital assets, net of related debt 15,000 40,000 55,000
Government-wide Statement of Activities
Coco City
Statement of Activities
Year Ended December 31, 2013
Net (Expenses) Revenues, Changes
Prog. Rev.
Primary Government
Charges for
Govern’tal
Bus.-type
Expenses
Services
Activities
Activities
Total
Functions
Governmental activities:
Public safety
345,000
Culture and recreation
Interest on long-term debt
______
Total governmental activ.
442,125
Business-type activities:
Swimming pool
_______
Total primary government
General revenues:
Property taxes
401,000
401,000
Total general revenues
475,000
_____
475,000
Change in net assets
Net position – beginning
Net position – ending
Notes:
plus judgments and claims (4,000).
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CONTINUING PROBLEM 2
Requirement a. Journal entries to convert fund financial statements to government-wide financial
statements. Transaction references are to pertinent sections in Continuing Problem 2 (CP2) in Chapter 9
and to the additional information provided in Continuing Problem 2 (CP2) of Chapter 10.
a. Revenues – property taxes 300
Net position 300
To adjust for beginning-of-year deferred revenues
recognized as revenue in fund statements.
(Transaction reference – Chapter 9, CP2, Part B, Item 1)
c. Proceeds from bond issue 2,000
Bonds payable 2,000
To record bonds payable and reduce financing source
(Transaction reference – Chapter 9, CP2, Part D, Item 1)
d. Capital assets 3,000
f. Transfers in 1,300
Transfers out 1,300
To eliminate interfund transfers among governmental-type funds
(Transaction reference – Chapter 9, CP2, Part C, Item 1 and Part E, Item 1)
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j. Net position 120
Accrued interest payable 120
To record beginning of year balance
(Transaction reference – Chapter 10, CP2, Item d)
k. Interest expense 15
Accrued interest payable 15
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Requirement a. Work sheet for government-wide statements
Aggregated bal.
Fund Statements
Adjusted bal.
Debit
Credit
Debit
Credit
Debit
Credit
Cash
1,115
1,115
Property taxes receivable – del.
930
930
Deferred property tax revenues
400
b. 400
Fund balances
1,605
1,605
Revenues – property taxes
8,880
a. 300
b. 400
8,980
Revenues – pers, income taxes
5,000
5,000
Revenues – intergov‘t
2,300
2,300
Revenues – recreation fees
700
700
Revenues – miscellaneous
20
20
Expenditures – public safety
7,390
m. 12
7,402
Expenditures – public works
4,950
4,950
Expenditures – culture
390
390
Expenditures – principal retire.
650
e. 650
Expenditures – interest
520
k. 15
535
Transfers out
1,300
Transfers in
1,300
Proceeds from bond issue
_______
2,000
c. 2,000
Net position
i. 5,500
a. 300
j. 120
g. 7,600
i. 5,500
6,850
Capital assets
d. 3,000
g. 14,000
Accumulated depreciation
g. 6,400
h. 700
7,100
Depreciation exp – pub safety
h. 700
700
Accrued interest payable
j. 120
________
k. 15
135
Pers. Income taxes receivable
700
700
Allowance for uncollectible taxes
30
30
Salaries payable
700
700
Accrued vacation pay payable
10
l. 75
m. 12
97
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Requirement b. Government-Wide Statement of Net Position
Croton Village
Statement of Net Position
December 31, 2013
($ in 000)
Governmental
Activities
Assets
Liabilities
Current liabilities:
Salaries payable 700
Income tax refunds payable 300
Net Position
Invested in capital assets, net of related debt 3,050
Restricted for intergovernmental grants 235
Requirement b. Government-Wide Statement of
Activities
Croton Village
Statement of Activities
Year Ended December 31, 2013
($ in 000)
Net (Exp)
Program Revenues
Revenues
Charges
Operating
Capital
Changes
Functions:
Expenses
forService
Grants
Grants
Net Posit.
Governmental Activities
Public safety
8,102
1,000
1,000
(6,102)
Public works
4,950
Parks
2,300
Culture
Interest on long-term debt
___
____
____
General revenues:
Property taxes
8,980
Personal income taxes
Total revenues
Change in net position
3,810
Note: Net position at beginning of year (3,810) consist of opening fund balance (1,605)
plus net credit to net position as a result of beginning-of-year adjustments (2,205)
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Requirement c. Reconciliation of funds balance sheet to government-wide statement of net position ($ in
000)
Total fund balance, fund balance sheet $ 1,305
Amounts reported in statement of net position are different because:
Requirement c. Reconciliation of funds statement of revenues, expenditures, and changes in fund balances
to government-wide statement of activities ($ in 000)
exceeded depreciation (700) is 2,300
Bond proceeds provide current financial resources and debt repayments are
expenditures in governmental funds. Issuing debt increases liabilities and
repaying debt decreases them in the statement of net assets. The amount by which