Chapter 10: Government-Wide Financial Statements
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 displayedb.Information should be
displayed by fund type, with a total for the government as a
wholec.Information should be displayed by major fund, with a total
for the government as a wholed.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 typeb.the current financial resources
measurement focusc.the economic resources measurement focusd.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 balancesb.as net
positionc.as fund equityd.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 statementsb.All component units should be
included either in the column for governmental activities or in the
column for business-type activitiesc.Component units should be
blended where appropriate; discretely presented component units
should be reported in a separate columnd.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 positionb.Bonds payable should not be reported on the
government-wide financial statementsc.Bonds payable should be
separated between amounts due to be paid in one year and amounts
due to be paid in more than one yeard.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 debtb.It should
be reported as part of net position restricted for debt servicec.It
should be reported as part of net position reserved for debt
serviced.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 sectionb.as a direct
reduction of the expenses of the health departmentc.as an element
of program revenues, which reduce gross expenses of the health
departmentd.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 sectionb.as a direct reduction of interest expenses in the
functional expense sectionc.as an element of program revenue, which
reduce gross interest expensesd.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 government-wide statement of activities?a.ISF activities
should be reported in a separate columnb.ISF activities should be
included in the column headed "business-type activities."c.ISF
activities should be included in the column headed
"governmental-type 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?FundGovernment-wideStatementsStatementsa.$800,000$800,000b.$800,000$840,000c.$825,000$825,000d.$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 reportedb.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 reportedc.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, respectivelyd.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?FundGovernment-wideStatementsStatementsa.$375,000$400,000b.$875,000$900,000c.
$875,000$895,000d.$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 availableb.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 periodc.in the period they are
collected in cash, together with an accrual for uncollected
taxesd.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.$390,000b.$397,500c.$400,000d.$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.$80,000c.$240,000d.$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?
FundGovernment-wideStatementsStatementsa.$30,000$30,000b.$30,000$45,000c.$30,000$60,000d.$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?FundGovernment-wideStatementsStatementsa.OptionalRequiredb.OptionalOptionalc.RequiredRequiredd.RequiredOptional
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 statementsa.No adjustments are
neededb.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 statementsa.No journal entries are neededb.Capital
assets - equipment70,000Expenditures - capital
outlay70,000Depreciation expense - equipment11,667Accumulated
depreciation - equipment11,667c.Capital assets -
equipment60,000Expenditures - capital outlay60,000Depreciation
expense - equipment10,000Accumulated depreciation -
equipment10,000d.Capital assets - equipment70,000Expenditures -
capital outlay70,000Depreciation expense -
equipment10,000Accumulated depreciation - equipment10,000
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.$70,000b.$60,000c.$58,333d.$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 neededb.Available for capital assets2,000,000Bonds
payable2,000,000c.Net investment in capital assets2,000,000Bonds
payable2,000,000d.Other financing source - proceeds from bond
issue2,000,000Bonds payable2,000,000
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.$0b.$30,000c.$630,000d.$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 statementsb.Amounts reported as
expenditures in the statement of activities are reported as capital
assets in the fund-level statementsc.Debt proceeds provide current
financial resources in the statement of activities, but are
reported as long-term liabilities in the fund-level
statementsd.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 activitiesb.reporting revenues on the accrual basis,
rather than the modified accrual basis, for business-type
activitiesc.reporting depreciation expense, rather than capital
outlay expenditures, for governmental activitiesd.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 depreciatedb.General capital assets
are not required to be depreciatedc.General capital assets should
be depreciated, but financial statement preparers may choose not to
depreciate land and infrastructure assetsd.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 columnb.Both
proprietary fund and general capital assets are reported in that
columnc.All general capital assets should be reported in that
columnd.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 disclosesb.estimate the dollar amount of its infrastructure
assets and report that amount in the government-wide statement of
net positionc.leave the dollar value of its infrastructure assets
off both the government-wide statement of net position and the
governmental fund balance sheetd.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 neededb.Interest expense40,000Interest
payable40,000c.Interest expense40,000Bond principal
expense33,333Debt service payable73,333d.Interest
expense240,000Interest payable240,000
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
assets2,525,000Expenditures - capital outlay2,525,000b.Capital
assets125,000Expenditures - capital outlay125,000c.Capital
assets2,525,000Net position 2,400,000Expenditures - capital
outlay125,000d.Capital assets2,400,000Expenditures - capital
outlay125,000Net 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
revenuesb.interfund reimbursementsc.interest expense on long-term
debtd.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 isa.an enterprise fundb.a capital
projects fundc.an internal service fundd.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 government-wide statement of
activities?a.depreciation expense for any capital assetsb.interest
expense for bonds issued to finance any capital
assetsc.depreciation expense for infrastructure capital
assetsd.interest expense for bonds issued to finance infrastructure
capital assets
Answer:c
33.Westenhover City is a municipality that has governmental
activities, business-type 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 unitb.revenues of the discrete component unitc.revenues
of the governmental activitiesd.revenues of the business-type
activities
Answer:a
34.The unrestricted net position balance for a local
governmenta.cannot be negativeb.normally is the largest component
of the total net position balancec.can be negatived.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 formatb.in order of
relative liquidityc.in either order of relative liquidity or a
classified formatd. 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:GFCPFTotalRevenues$100$ --$100Expenditures8962151Bond
proceeds--7070Increase in fund balance11819Beginning fund
balance52052Ending fund balance63871
The total net position balance for Tinsel Town's governmental
activities at the end of fiscal 2013 isa.63 b.43c.68d.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 Towns government-wide statement of
activities?a.as a general revenueb.as a program-specific capital
grantc.as a charge for servicesd.as a program-specific operating
grant
Answer:d
38.The City of Bogue provides other postemployment benefits
(OPEB) to its full-time 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
yearb.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 pland.nothing. The liability should only
be reported in the governmental fund balance sheet.
Answer:cProblems
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$120,000Operating expenses 80,000Operating
income40,000Nonoperating expenses 10,000Change in net
position30,000Net position, beginning of period 180,000Net
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 government-wide 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 / $120,000 =
25%Governmental program expenses after reduction for
intragovernmental profit:ExpendituresExpenses
Fund-level25%Government-statementReductionwide statementGeneral
government.$ 60,000$15,000$45,000Public
safety10,0002,5007,500Social service 30,000 7,500
22,500$100,000$25,000$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$2,000,000Accumulated depreciation, capital
assets$1,600,000Annual depreciation rate on capital assets10 %Bonds
payable-0-
The following information is extracted from the city's
governmental funds statement of revenues, expenditures, and changes
in fund balances for the year ended December 31, 2013.Expenditures
- capital outlay (General Fund)$ 40,000Expenditures - capital
outlay (Capital Projects Fund)$600,000Expenditures - bond principal
(Debt Service Fund)$ 60,000Expenditures - bond interest (Debt
Service Fund$ 15,000Proceeds of debt (Capital Projects
Fund)$600,000
According to the notes to the financial statements, the city
sold $600,000 of 5-year 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 expense3.Capital assets4.Accumulated depreciation,
capital assets5.Interest payable6.Bonds payable7.Net investment in
capital assets
Answer:Part a.Journal Entriesa.Capital
assets2,000,000Accumulated depreciation, capital assets
1,600,000Net position400,000To report carry-over balances.
b.Capital assets 640,000Expenditures - capital outlay640,000To
report capital asset acquisitions.
c.Depreciation expense232,000Accumulated depreciation, capital
assets232,000To report depreciation expense ([10% of 2,000,000]+ 5%
of 640,000)]
d.Proceeds of debt600,000Expenditures - bond
principal60,000Bonds payable540,000To report outstanding bonds
payable
e.Interest expense6,750Interest payable6,750To report accrued
interest(540,000 x 5% x 3 months)
Part b.- Statement Elements1.Depreciation expense (journal entry
c.)232,0002.Interest expense (from fund statement - 15,000;plus
journal entry e. - 6,750)21,7503.Capital assets (journal entries a.
and b.)2,640,0004.Accumulated depreciation, capital assets(journal
entries a.and c.)1,832,0005.Interest payable (journal entry
e.)6,7506.Bonds payable (journal entry d.)540,0007.Net investment
in capital assets268,000Computed as follows:Capital
assets$2,640,000 Accumulated depreciation (1,832,000)Net capital
assets808,000 Bonds payable (540,000)=$ 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 position900,000Judgments and claims expenses
35,000Judgments and claims liabilities935,000
(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 receivable28,000Revenues - sales taxes28,000
c.Sales taxes receivable35,000Net position28,000Revenues - sales
taxes7000
(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.
20132014Tax levy$700,000$730,000Taxes collected in cash from the
year's levy$670,000$690,000Taxes expected to be collected in
first60 days of the following year$ 22,000$ 29,000Taxes expected to
be collected later inthe following year$ 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-levelRevenues - property taxes8,000Deferred
revenues8,000
2013 Government-wideDeferred revenues8,000Revenues - property
taxes8,000
2014 Fund-levelRevenues - property taxes11,000Deferred
revenues11,000
2014 Government-wideDeferred revenues11,000Revenues - property
taxes3,000Net position8,000
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 Towns capital assets.
Town of CatlettvilleGovernment-Wide Adjusted Trial BalanceJune
30, 2013
Cash and investments$380,500 380,500
Taxes receivable, net871,000
Accounts receivable, net189,000
Inventories74,950
Other assets18,900
Capital assets20,000,000
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
Revenuesproperty taxes
3,650,000
Revenues--other taxes
417,000
Investment revenues
94,500
Miscellaneous revenues
61,350
Program revenuescharges for servicesgeneral government
350,000
Program revenuescharges for servicespublic safety
30,000
Program revenuespublic safetyoperating grants
275,000
Program revenuesroads and bridgescapital grants
1,050,000
General government expenses1,000,000
Public safety expenses2,500,000
Roads and bridges expenses2,100,000
Interest expense on long-term debt 25,000 25,000
Totals$27,159,350$27,159,350
Answer: Part 43a, Government-Wide Statement of Net position
Town of CatlettvilleStatement of Net positionJune 30, 2013
Current assets:
Cash and investments$380,500 380,500
Taxes receivable, net871,000
Accounts receivable, net189,000
Inventories74,950
Other assets 18,900
Total current assets1,534,350
Capital assets, net of accumulated depreciation9,500,000
Total assets11,034,350
Current liabilities:
Accounts payable87,500
Deferred revenues144,000
Current portion of long-term debt 100,000
Total current liabilities331,500
Noncurrent portion of long-term debt 400,000
Total liabilities 731,500
Net position
Net investment in capital assets9,000,000
Unrestricted 1,302,850
Total net position$ 10,302,850
Answer: Part 43b, Government-Wide Statement of Activities
Town of CatlettvilleStatement of ActivitiesFor the Year Ended
June 30, 2013
Program Revenues
Functions
Expenses
Charges for services
Operating Grants
Capital GrantsNet Expenses and Changes in Net Position
General government$ 1,000,000$ 350,000
$ 650,000
Public safety2,500,00030,000$ 275,000
2,195,000
Roads and bridges2,100,000
$ 1,050,0001,050,000
Interest on long-term debt 25,000 . 25,000
Totals$5,625,000$ 380,000$ 275,000$ 1,050,0003,920,000
General revenues
Property taxes
3,650,000
Other taxes
417,000
Investment revenues
94,500
Miscellaneous revenues
61,350
Total general revenues
4,222,850
Change in net position
302,850
Net position, beginning of year
10,000,000
Net position, end of year
$ 10,302,850