Chapter 10: Government-Wide Financial Statements
Multiple Choice
1.
To what extent should fund or fund type data be displayed on the face of
government-wide financial statements?
a. Information should be displayed for the government as a whole, but
individual funds or fund types should not be displayed
b. Information should be displayed by fund type, with a total for the
government as a whole
c. Information should be displayed by major fund, with a total for the
government as a whole
d. Information should be displayed by major fund, except for fiduciary funds
Answer: a
2.
Which measurement focus should be used in government-wide financial
statements?
a. the same measurement focus as that used in accounting for each fund type
b. the current financial resources measurement focus
c. the economic resources measurement focus
d. the economic resources measurement focus for governmental fund types
and the current financial resource measurement focus for proprietary and
fiduciary fund types
Answer: c
3.
How should the difference between assets, deferred outflows, deferred inflows,
and liabilities be characterized in government-wide financial statements?
a. as fund balances
b. as net position
c. as fund equity
d. as available for spending
Answer: b
4.
How should component units be displayed in government-wide financial
statements?
a. Component units should not be reported in government-wide financial
statements
b. All component units should be included either in the column for
governmental activities or in the column for business-type activities
c. Component units should be blended where appropriate; discretely
presented component units should be reported in a separate column
d. All component units should be included with other business-type activities
Answer: c
5.
How should bonds payable be reported on government-wide financial statements?
a. Bonds payable should be reported as an offset to capital assets in the
assets section of the statement of net position
b. Bonds payable should not be reported on the government-wide financial
statements
c. Bonds payable should be separated between amounts due to be paid in
one year and amounts due to be paid in more than one year
d. Bonds payable should be reported in the net position section of the
statement of net position
Answer: c
6.
In accordance with a bond agreement, assets are being accumulated in a sinking
fund to pay bonds due in 20 years. The assets are reported as Investments. What
other information should be reported about that item on the face of the
government-wide financial statements?
a. It should be reported as part of net position invested in capital assets, net
of related debt
b. It should be reported as part of net position restricted for debt service
c. It should be reported as part of net position reserved for debt service
d. It should be reported as part of fund balance reserved for debt service
Answer: b
7.
A city health department charges fees for copies of birth certificates provided to
its citizens. How should those fees be reported in the government-wide statement
of activities?
a. as a separate item of revenue in the revenue section
b. as a direct reduction of the expenses of the health department
c. as an element of program revenues, which reduce gross expenses of the
health department
d. as a special item
Answer: c
8.
A city government levies property taxes that are recorded directly into a Debt
Service Fund, rather than the General Fund. How should those property taxes be
reported in the government-wide statement of activities?
a. as property tax revenue in the general revenues section
b. as a direct reduction of interest expenses in the functional expense section
c. as an element of program revenue, which reduce gross interest expenses
d. as a negative expense, which is then allocated to all functions or programs
Answer: a
9.
How should Internal Service Fund (ISF) activities be reported in the governmentwide statement of activities?
a. ISF activities should be reported in a separate column
b. ISF activities should be included in the column headed "business-type activities."
c. ISF activities should be included in the column headed "governmentaltype activities."
d. ISF activities (revenues and expenses) should be eliminated and interfund
profits or losses should be eliminated by decreasing or increasing the costs
of the activities that were billed
Answer: d
10.
Merchants remit $800,000 to a county government in calendar year 2013 for sales
taxes collected in 2013. In January, 2014, they send the county an additional
$25,000 applicable to the year 2014. Based on past experience, the county expects
to receive an additional $15,000 later in 2014, but applicable to 2013. How much
should the county recognize as sales tax revenues when it prepares its fund and
government-wide financial statements?
Fund
Government-wide
Statements
Statements
a.
$800,000
$800,000
b.
$800,000
$840,000
c.
$825,000
$825,000
d.
$825,000
$840,000
Answer: d
11.
An Internal Service Fund (ISF) provided services to two agencies financed by the
General Fund -- the Tax Department (which it billed $200,000) and the
Comptroller's Office (which it billed $100,000). In the fund financial statements,
the ISF reported a loss of $30,000. How should this information be reported in the
government-wide statement of activities?
a. Under "business-type activities," in a separate line captioned ISF,
revenues of $300,000, expenses of $330,000, and net expenses of
($30,000) should be reported
b. Under "governmental-type activities," in a separate line captioned ISF,
revenues of$300,000, expenses of $330,000, and net expenses of
($30,000) should be reported
c. ISF activities should not be reported, but expenses reported for the Tax
Department and the Comptroller's Office should be increased by $20,000
and $10,000, respectively
d. ISF activities should not be reported, but expenses reported for the Tax
Department and the Comptroller's Office should be reduced by $20,000
and $10,000, respectively
Answer: c
12.
A county, that did not previously have a property tax levies a property tax for
$900,000 in December 2012. The tax is for the budget year January 1 - December
31, 2013. Because it sends out the bills on December 1, it actually collects
$500,000 in cash before December 31, 2012. It collects an additional $375,000 of
2013 property taxes during calendar year 2013, $20,000 during January 1 February 28, 2014, and the remaining $5,000 in June 2014. How much property
tax revenue should the county report in its 2013 fund and government-wide
financial statements?
Fund
Government-wide
Statements
Statements
a.
$375,000
$400,000
b.
$875,000
$900,000
c.
$875,000
$895,000
d.
$895,000
$900,000
Answer: d
13.
When should property tax revenues be recognized in government-wide financial
statements?
a. in the period for which the taxes are levied (net of estimated refunds and
uncollectibles),provided they are measurable and available
b. in the period for which the taxes are levied (net of estimated refunds and
uncollectibles),even if the enforceable legal claim arises or due date for
payment is in a different period
c. in the period they are collected in cash, together with an accrual for
uncollected taxes
d. in the period when an enforceable legal claim arises or when the resources
are received, whichever occurs first
Answer: b
14.
Pursuant to law, a state agrees to reimburse a county 50 percent of the costs
incurred by the county to maintain county roads, provided the county incurs no
more than $800,000 in allowable costs. Allowable costs include accrued but
unpaid salaries, but do not include encumbrances. For its calendar year 2012, the
county's records show the following for its road maintenance program: cash
disbursements - $780,000; accrued salaries payable -$15,000; encumbrances $10,000. How much intergovernmental revenue should the county recognize in its
government-wide financial statements?
a. $390,000
b. $397,500
c. $400,000
d. $402,500
Answer: b
15.
A city experienced several auto damage claims during its year ended December
31, 2012. The total amount claimed was $600,000. No cash was paid out in 2012.
However, claims totaling $200,000 were settled by December 31, 2012. These
claims were settled for $80,000, and were scheduled for payment on January 15,
2013. City attorneys felt that the remaining $400,000 of claims could be settled
during 2013 for about $160,000. How much should the city recognize as claims
expenses in its government-wide financial statements for 2012?
a. $0
b. $80,000
c. $240,000
d. $480,000
Answer: c
16.
A small village (which keeps its records on a calendar-year basis) issued $1
million of bonds on April 1, 2012. The first payment of principal was due April 1,
2013, but interest at 6 percent per annum on the outstanding debt was due on
October 1, 2012 and April 1, 2013. How much interest expenditure (expense)
should the village recognize in its governmental fund and government-wide
financial statements for the calendar year 2012?
Fund
Government-wide
Statements
Statements
a.
$30,000
$30,000
b.
$30,000
$45,000
c.
$30,000
$60,000
d.
$45,000
$45,000
Answer: b
17.
What is the general rule regarding use of the "consumption method" for
recognizing materials and supplies in fund-level and government-wide financial
statements?
Fund
Government-wide
Statements
Statements
a.
Optional
Required
b.
Optional
Optional
c.
Required
Required
d.
Required
Optional
Answer: a
18, 19, and 20. The following set of facts relates to questions 18 through 20: On July 1, 2012, a
city used tax resources of $70,000 to acquire three police cruisers. The police cars were expected
to have a useful life of three years, after which the salvage value would be $10,000.
18.
Describe the adjustment or adjustments needed to prepare government-wide
financial statements from the city's calendar year 2012 fund-level financial
statements
a. No adjustments are needed
b. Record capital assets, and record six months' depreciation ($10,000)
c. Record capital assets, reduce capital outlay expenditures, and record six
months' depreciation ($11,667)
d. Record capital assets, reduce capital outlay expenditures, and record six
months' depreciation ($10,000)
Answer: d
19.
Identify the adjustment entries, if any, necessary to prepare government-wide
financial statements from the city's calendar year 2012 fund-level statements
a. No journal entries are needed
b. Capital assets - equipment
70,000
Expenditures - capital outlay
70,000
Depreciation expense - equipment
11,667
Accumulated depreciation - equipment
11,667
c. Capital assets - equipment
60,000
Expenditures - capital outlay
60,000
Depreciation expense - equipment
10,000
Accumulated depreciation - equipment
10,000
d. Capital assets - equipment
70,000
Expenditures - capital outlay
70,000
Depreciation expense - equipment
10,000
Accumulated depreciation - equipment
10,000
Answer: d
20.
How much should the city report in its December 31, 2012, government-wide
financial statements as net position invested in capital assets, net of related debt?
a. $70,000
b. $60,000
c. $58,333
d. $10,000
Answer: b
21.
Just before the close of its fiscal year, a city government issues $2 million of
bonds to finance the acquisition of capital assets. However, no part of the debt is
repaid by year-end and no part of the debt is used to purchase capital assets. What
adjusting entry is needed to prepare the city's government-wide financial
statements from its fund-level financial statements?
a. No adjusting entry is needed
b. Available for capital assets
2,000,000
Bonds payable
2,000,000
c. Net investment in capital assets
2,000,000
Bonds payable
2,000,000
d. Other financing source - proceeds from bond issue 2,000,000
Bonds payable
2,000,000
Answer: d
22.
During its calendar year 2012, a city issued $800,000 of bonds to acquire various items of
capital equipment. By the end of 2013, the city had spent all the bond proceeds to
purchase capital assets. Accumulated depreciation on the assets was $120,000, and
$150,000 of the bonds had been paid off. How much should the city report in its
government-wide statement of net position as net investment in capital assets?
a. $0
b. $30,000
c. $630,000
d. $650,000
Answer: b
23.
Which of the following is a plausible explanation for the difference between the
net change in fund balances of governmental funds (fund-level statement of
revenues, expenditures, and changes in fund balances) and the change in net
position of governmental activities (government-wide statement of activities)?
a. Some expenses reported in the statement of activities do not require the
use of current financial resources and are not reported as expenditures in
the fund-level statements
b. Amounts reported as expenditures in the statement of activities are
reported as capital assets in the fund-level statements
c. Debt proceeds provide current financial resources in the statement of
activities, but are reported as long-term liabilities in the fund-level
statements
d. Depreciation of general fixed assets is not reported as an expense in the
statement of activities, but it is reported as an expense in the fund-level
statements
Answer: a
24.
Which of the following is a typical reconciling item between the fund-level
financial statements and the government-wide financial statements?
a. reporting the amount of cash on hand for governmental activities
b. reporting revenues on the accrual basis, rather than the modified accrual
basis, for business-type activities
c. reporting depreciation expense, rather than capital outlay expenditures, for
governmental activities
d. reporting the net effect of transfers between the general fund and debt
service fund
Answer: c
25.
Which of the following is the most accurate statement regarding the depreciation
of general capital assets in the governmental activities column of the statement of
activities?
a. All general capital assets must be depreciated
b. General capital assets are not required to be depreciated
c. General capital assets should be depreciated, but financial statement
preparers may choose not to depreciate land and infrastructure assets
d. General capital assets should be depreciated, except for land and
infrastructure assets that are reported using the "modified approach."
Answer: d
26.
What is the general rule for reporting capital assets in the governmental activities
column of the government-wide statement of net position?
a. Capital assets are not reported in that column
b. Both proprietary fund and general capital assets are reported in that column
c. All general capital assets should be reported in that column
d. All general capital assets, except infrastructure assets, should be reported
in that column.
Answer: c
27.
What must a government do to avoid depreciating its infrastructure assets and still
meet the GASB's financial reporting standards?
a. have an asset management system and document that its assets are being
preserved at a condition level that it establishes and discloses
b. estimate the dollar amount of its infrastructure assets and report that
amount in the government-wide statement of net position
c. leave the dollar value of its infrastructure assets off both the governmentwide statement of net position and the governmental fund balance sheet
d. take a compete inventory of its infrastructure assets every year
Answer: a
28.
A government issued $4 million of bonds on November 1, 2012, to build a fire
house. The first debt service payment ($200,000 principal plus 6 percent interest
per annum on outstanding debt) was due November 1, 2013. To prepare
government-wide financial statements at December 31, 2012, what journal entry
is needed regarding the debt service due on November 1, 2013?
a. no journal entry is needed
b. Interest expense
40,000
Interest payable
40,000
c. Interest expense
40,000
Bond principal expense
33,333
Debt service payable
73,333
d. Interest expense
240,000
Interest payable
240,000
Answer: b
29.
On January 1, 2012, a county's government-wide financial statements shows
general fixed assets of $2,400,000. For the year ended December 31, 2012, the
county's fund financial statement shows an amount of $125,000 next to the
caption "Expenditures - capital outlay." To prepare its 2012 government-wide
financial statements, the preparer makes a worksheet that uses the 2012 fund-level
financial statements as the starting point. As a result, the worksheet does not show
any capital assets at the beginning of the year. What adjusting entry is needed to
report the facts about capital assets on the government-wide statements?
a. Capital assets
2,525,000
Expenditures - capital outlay
2,525,000
b. Capital assets
125,000
Expenditures - capital outlay
125,000
c. Capital assets
2,525,000
Net position
2,400,000
Expenditures - capital outlay
125,000
d. Capital assets
2,400,000
Expenditures - capital outlay
125,000
Net position
2,525,000
Answer: c
30.
Which of the following elements properly will not be displayed as a specific item
in a government-wide statement of activities prepared by a city or county
government?
a. program revenues
b. interfund reimbursements
c. interest expense on long-term debt
d. the beginning net position balance(s)
Answer: b
31.
Jace Township's General Fund reports a balance due from another fund. This
item and the corresponding interfund liability will appear in Jace Township's
government-wide statement of net position only if the debtor fund is
a. an enterprise fund
b. a capital projects fund
c. an internal service fund
d. a permanent fund
Answer: a
32.
If a government uses the "modified approach" in accounting for its infrastructure
assets, which of the following items properly will not appear in its governmentwide statement of activities?
a. depreciation expense for any capital assets
b. interest expense for bonds issued to finance any capital assets
c. depreciation expense for infrastructure capital assets
d. interest expense for bonds issued to finance infrastructure capital assets
Answer: c
33.
Westenhover City is a municipality that has governmental activities, businesstype activities, a discrete component unit, and a blended component unit. Which
of the following would not properly appear as a specific line item in Westenhover
City's government-wide statement of net position?
a. revenues of the blended component unit
b. revenues of the discrete component unit
c. revenues of the governmental activities
d. revenues of the business-type activities
Answer: a
34.
The unrestricted net position balance for a local government
a. cannot be negative
b. normally is the largest component of the total net position balance
c. can be negative
d. equals the sum of the unrestricted fund balances of the major governmental funds
Answer: c
35.
On the government-wide statement of net position, assets and liabilities may be
reported:
a. in a classified format
b. in order of relative liquidity
c. in either order of relative liquidity or a classified format
d. in separate columns
Answer: c
36.
Tinsel Town has only two funds, the General Fund (GF), and a Capital Projects
Fund (CPF). Summarized operating statements for each of the funds for fiscal
2013 are as follows:
GF
CPF
Total
Revenues
$100
$ -$100
Expenditures
89
62
151
Bond proceeds
-70
70
Increase in fund balance
11
8
19
Beginning fund balance
52
0
52
Ending fund balance
63
8
71
The total net position balance for Tinsel Town's governmental activities at the end
of fiscal 2013 is
a. 63
b. 43
c. 68
d. 75
Answer: a (71 + 62 - 70)
37.
In 2013, Monks Town received a State grant of $300,000 that can only be used to
hire additional police officers. How should this revenue be reported in the Town’s
government-wide statement of activities?
a. as a general revenue
b. as a program-specific capital grant
c. as a charge for services
d. as a program-specific operating grant
Answer: d
38.
The City of Bogue provides other postemployment benefits (OPEB) to its fulltime employees. The City uses an actuary to measure its obligation. Which of the
following should the City report as a liability in its government-wide statement of
net position?
a. the contribution it made to the OPEB plan during the year
b. the unpaid portion of medical benefits it expects to pay retirees for events
that happened during the year.
c. the cumulative difference between the annual accrual basis OPEB
expense, as determined by the actuary, less payments to retirees and
contributions to the OPEB plan
d. nothing. The liability should only be reported in the governmental fund
balance sheet.
Answer: c
Problems
39.
(Reporting Internal Service Fund activity in government-wide financial statements)
Regina County has an Internal Service Fund (ISF) that operates a motor pool for
various county agencies, all of which receive appropriations from the General
Fund. The amounts billed by the ISF during 2012 were: General government
programs - $60,000; Public safety programs - $10,000; and Social services
programs - $30,000. These amounts are included in the total expenditures reported
in the fund financial statements for each program.
Following is a condensed ISF operating statement:
Charges for services
$120,000
Operating expenses
80,000
Operating income
40,000
Nonoperating expenses
10,000
Change in net position
30,000
Net position, beginning of period
180,000
Net position, end of period
$210,000
Required:
a. Calculate how much Regina County should report as motor pool
transportation expenses for each of its programs in its 2012 governmentwide statement of activities.
b. Assume the ISF assets are: Cash of $20,000; and Capital assets, net of
depreciation, of $180,000. Describe how the ISF assets are brought into
the government-wide financial statements.
Answer:
a. Intragovernmental "profit" percentage included in ISF billings:
Intragovernmental profit = $ 30,000 / $120,000 = 25%
Governmental program expenses after reduction for intragovernmental profit:
General government.
Public safety
Social service
Expenditures
Fund-level
statement
$ 60,000
10,000
30,000
$100,000
25%
Reduction
$15,000
2,500
7,500
$25,000
Expenses
Governmentwide statement
$45,000
7,500
22,500
$75,000
b. The ISF assets are brought into the government-wide statements by
adding $200,000 to the governmental activity assets, with an offsetting
credit to net position. The credit to reduce governmental expenditures for
purposes of government-wide reporting is offset by a debit to net position.
40.
(Preparation of government-wide financial statements - capital asset elements)
The following information is extracted from the City of Lucas’ government-wide
statement of net position at December 31, 2012:
Capital assets
$2,000,000
Accumulated depreciation, capital assets
$1,600,000
Annual depreciation rate on capital assets
10 %
Bonds payable
-0The following information is extracted from the city's governmental funds
statement of revenues, expenditures, and changes in fund balances for the year
ended December 31, 2013.
Expenditures - capital outlay (General Fund)
$ 40,000
Expenditures - capital outlay (Capital Projects Fund)
$600,000
Expenditures - bond principal (Debt Service Fund)
$ 60,000
Expenditures - bond interest (Debt Service Fund
$ 15,000
Proceeds of debt (Capital Projects Fund)
$600,000
According to the notes to the financial statements, the city sold $600,000 of 5year serial bonds on April 1, 2013, to finance the acquisition of capital assets.
Principal is payable every six months, starting October 1, 2013. Interest of 5
percent per annum on the unpaid principal is also payable every six months,
starting October 1, 2013.
Required:
a. Prepare journal entries so the foregoing information can be used in a work
sheet to prepare government-wide financial statements for the year ended
December 31, 2013.
b. Compute the amounts for the following statement elements as they will
appear in the government-wide financial statements for the year ended
December 31, 2013:
1. Depreciation expense (assume all assets acquired in 2013 were
acquired July 1 and all have a 10-year life)
2. Interest expense
3. Capital assets
4. Accumulated depreciation, capital assets
5. Interest payable
6. Bonds payable
7. Net investment in capital assets
Answer:
Part a. Journal Entries
a. Capital assets
Accumulated depreciation, capital assets
Net position
To report carry-over balances.
2,000,000
1,600,000
400,000
b. Capital assets
Expenditures - capital outlay
To report capital asset acquisitions.
640,000
640,000
c. Depreciation expense
232,000
Accumulated depreciation, capital assets
To report depreciation expense ([10% of 2,000,000]
+ 5% of 640,000)]
d. Proceeds of debt
Expenditures - bond principal
Bonds payable
To report outstanding bonds payable
e. Interest expense
Interest payable
To report accrued interest
(540,000 x 5% x 3 months)
232,000
600,000
60,000
540,000
6,750
Part b.- Statement Elements
1. Depreciation expense (journal entry c.)
2. Interest expense (from fund statement - 15,000;
plus journal entry e. - 6,750)
3. Capital assets (journal entries a. and b.)
4. Accumulated depreciation, capital assets
(journal entries a.and c.)
5. Interest payable (journal entry e.)
6. Bonds payable (journal entry d.)
7. Net investment in capital assets
Computed as follows:
Capital assets
$2,640,000
Accumulated depreciation
(1,832,000)
Net capital assets
808,000
Bonds payable
(540,000)
=
$ 268,000
6,750
232,000
21,750
2,640,000
1,832,000
6,750
540,000
268,000
41.(Entries to prepare government-wide financial statements - revenue and expense accruals)
For the following situations, make adjusting entries necessary to prepare
government-wide financial statements. Where appropriate, take account of the
amounts reported in the fund-level financial statements.
a. To prepare its government-wide financial statements for the year ended
December 31,2012, the city reported a $900,000 long-term liability for
estimated judgments and claims. At December 31, 2013, the city
estimated that the long-term liability would be $935,000. (Hint: Carry
forward the starting liability and adjust for the increase.)
b. A city instituted a new sales tax starting January 1, 2012. It collected
$600,000 of sales taxes during 2012. When the city prepared its fund-level
statements, it accrued an additional $200,000 for sales taxes remitted by
larger businesses in January, 2013, for taxes collected in the fourth quarter
of 2012. However, smaller businesses are not required to remit fourth
quarter collections until April, 2013. No accrual was made for those taxes,
which were estimated to be $28,000.
c. See facts in situation b. For the calendar year 2013, the city reported sales
taxes of $800,000 in its fund-level financial statements. This amount
includes all taxes collected in 2013 (applicable to 2013 and 2012), as well
as the accrual for larger merchant remittances in January, 2014. The
accrual does not include estimated remittances of $35,000 from smaller
merchants in April, 2014.
Answer:
a. Net position
Judgments and claims expenses
Judgments and claims liabilities
900,000
35,000
935,000
(Note: This adjustment can be made in two entries, one of which carries
forward the December 31, 2012, liability of 900,000.)
b. Sales taxes receivable
Revenues - sales taxes
28,000
c. Sales taxes receivable
Net position
Revenues - sales taxes
35,000
28,000
28,000
7000
(Note: Because the $800,000 of revenues reported in the 2013 fund statement
includes $28,000 accrued in the 2012 government-wide statement, only $7,000
additional revenue should be accrued for the 2013 government-wide statement.)
42.
(Entries to prepare government-wide statements - property tax revenue deferral)
When it prepared its financial statements for calendar year 2012, Watson Town
assumed that it would collect all unpaid property taxes during the first 60 days of
2013. As a result, no deferred revenues were reported. The following facts
pertain to the property tax revenues for calendar years 2013 and 2014. Make
adjusting entries needed to prepare both the fund-level and the government-wide
financial statements for 2013 and 2014. Watson Town does not record deferred
revenues until it makes end of the year adjustments.
Tax levy
Taxes collected in cash from the year's levy
Taxes expected to be collected in first
60 days of the following year
Taxes expected to be collected later in
the following year
2013
$700,000
$670,000
2014
$730,000
$690,000
$ 22,000
$ 29,000
$ 8,000
$ 11,000
Assume that all taxes expected to be collected in the following year were actually
collected when expected. Also assume that all journal entries to record the tax
levy, tax collections and so on were made, as appropriate.
Answer:
2013 Fund-level
Revenues - property taxes
Deferred revenues
2013 Government-wide
Deferred revenues
Revenues - property taxes
2014 Fund-level
Revenues - property taxes
Deferred revenues
2014 Government-wide
Deferred revenues
Revenues - property taxes
Net position
8,000
8,000
8,000
8,000
11,000
11,000
11,000
3,000
8,000
43.
(Preparation of Government-Wide Financial Statements)
On the following page is the government-wide adjusted trial balance for the Town
of Catlettville as of June 30, 2013, the end of the fiscal year. The adjustments
needed to convert accounting information from the current financial resources
measurement focus and modified accrual basis of accounting to the economic
resources measurement focus and accrual basis of accounting have been made.
The Town government performs three functions, general government, public
safety and roads and bridges. The Town has no business-type activities nor any
component units. Program revenues include charges for services (related to the
general government and public safety functions), operating grants (for public
safety) and capital grants (for roads and bridges). General revenue sources are
property taxes, other taxes, investment revenues, and miscellaneous revenues.
Using this information, prepare in good form (a) the government-wide statement
of net position (using a classified format), and (b) the government-wide statement
of activities as of, and for the year ended, June 30, 2013. There are no restricted
assets or liabilities; the long-term debt (both portions) is the only debt related to
the Town’s capital assets.
Town of Catlettville
Government-Wide Adjusted Trial Balance
June 30, 2013
Cash and investments
Taxes receivable, net
Accounts receivable, net
$380,500
380,500
871,000
189,000
Inventories
74,950
Other assets
18,900
Capital assets
20,000,000
Accumulated depreciation, capital assets
$10,500,000
Accounts payable
87,500
Deferred revenues
144,000
Current portion of long-term debt
100,000
Noncurrent portion of long-term debt
400,000
Net position
10,000,000
Revenues—property taxes
3,650,000
Revenues--other taxes
417,000
Investment revenues
94,500
Miscellaneous revenues
61,350
Program revenues—charges for services—general
government
Program revenues—charges for services—public safety
350,000
Program revenues—public safety—operating grants
275,000
30,000
Program revenues—roads and bridges—capital grants
1,050,000
General government expenses
1,000,000
Public safety expenses
2,500,000
Roads and bridges expenses
2,100,000
Interest expense on long-term debt
Totals
25,000
25,000
$27,159,350
$27,159,350
Answer: Part 43a, Government-Wide Statement of Net position
Town of Catlettville
Statement of Net position
June 30, 2013
Current assets:
Cash and investments
Taxes receivable, net
Accounts receivable, net
$380,500
380,500
871,000
189,000
Inventories
74,950
Other assets
18,900
Total current assets
1,534,350
Capital assets, net of accumulated depreciation
9,500,000
Total assets
11,034,350
Current liabilities:
Accounts payable
87,500
Deferred revenues
144,000
Current portion of long-term debt
100,000
Total current liabilities
331,500
Noncurrent portion of long-term debt
400,000
Total liabilities
731,500
Net position
Net investment in capital assets
9,000,000
Unrestricted
1,302,850
Total net position
$ 10,302,850
Answer: Part 43b, Government-Wide Statement of Activities
Town of Catlettville
Statement of Activities
For the Year Ended June 30, 2013
Program Revenues
Charges
for services
Expenses
Functions
General government
$ 1,000,000
$ 350,000
Public safety
2,500,000
30,000
Roads and bridges
2,100,000
Interest on long-term debt
Operating
Grants
Capital Grants
$
$ 275,000
$5,625,000
650,000
2,195,000
$ 1,050,000
25,000
Totals
Net Expenses and
Changes in Net
Position
1,050,000
25,000
.
$ 380,000
$ 275,000
$ 1,050,000
3,920,000
General revenues
Property taxes
Other taxes
3,650,000
417,000
Investment revenues
94,500
Miscellaneous revenues
61,350
Total general revenues
Change in net position
Net position, beginning of year
Net position, end of year
4,222,850
302,850
10,000,000
$ 10,302,850