Fundamentals of Advanced Accounting
Fundamentals of Advanced Accounting
7th Edition
ISBN: 9781259722639
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Chapter 12, Problem 35P

a.

To determine

Prepare a statement of activities and a statement of net position for the year 2017.

a.

Expert Solution
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Explanation of Solution

Statement of activity for W:

Statement of activities
Program revenueNet revenue and change in net assets
ProgramExpensesCharges for servicesGrants and contribution (operating)Grants and contribution (capital)Governmental activitiesBusiness activitiesTotal
        
Primary government:       
Governmental activities       
General governmental$149,000$5,000 $14,000($130,000) ($130,000)
Public safety$90,000$3,000  ($87,000) ($87,000)
Health and sanitation$70,000$42,000  ($28,000) ($28,000)
Interest on debt$16,000   ($16,000) ($16,000)
Total governmental activities$325,000$50,000 $14,000($261,000) ($261,000)

Table: (1)

Working note:

Computation of closing amount of net assets:

General revenue: 
Property taxes $ 401,000
Franchise taxes $   42,000
Investment $   13,000
Total $ 456,000
  
Change in net assets $ 195,000
Net assets – beginning 
Net assets – closing $ 195,000

Table: (2)

Statement of net assets for W:

Statement of net assets
ParticularsGovernmental activitiesBusiness activitiesTotal
    
Assets   
    
Cash & equivalents $              62,000  $      62,000
Prepaid expenses $                2,000  $         2,000
Investment $           103,000  $    103,000
Receivables $              81,000  $      81,000
Inventories $                3,000  $         3,000
Capital assets $           172,000  $    172,000
Total assets $           423,000  $    423,000
    $                -  
Liabilities   $                -  
Salaries payable $              19,000  $      19,000
Compensating absence  $       13,000 $      13,000
Noncurrent liabilities $           196,000  $    196,000
Total liabilities $           215,000 $       13,000 $    228,000
    $                -  
Net assets   $                -  
    $                -  
Invested in net assets $           (24,000)  $    (24,000)
Unrestricted $           219,000  $    219,000
Total net assets $           195,000  $    195,000

Table: (3)

b.

To determine

Prepare a statement of revenues, expenditures and other changes in fund balance and a balance sheet for the year 2017.

b.

Expert Solution
Check Mark

Explanation of Solution

Statement of revenues, expenditures and other changes in fund balance for W:

Statement of revenue, expenditure and change in fund balance
ParticularsGeneral fundsTotal government funds
   
Property taxes $                 401,000 $                   401,000
Franchise taxes $                   42,000 $                     42,000
Charges for Services $                   50,000 $                     50,000
Investments $                   13,000 $                     13,000
Total $                 506,000 $                   506,000
   
Expenditures:  
General Governmental $                 110,000 $                   110,000
Public Safety $                   90,000 $                     90,000
Health and Sanitation $                   54,000 $                     54,000
Debt Service:  
Principal payment on debt $                     4,000 $                       4,000
Interest on debt $                   16,000 $                     16,000
Capital Outlay $                 200,000 $                   200,000
Total expenditures$474,000$474,000
   
Excess of  
revenues over expenses32,00032,000
Other Financing Sources:  
   
Proceeds from long-term note200,000200,000
other  
   
uses and sources200,000200,000
Net Changes in fund balance  
Fund Balances (beginning)--
Fund Balances (ending)$232,000$232,000

Table: (4)

Balance sheet for W:

Balance sheet
ParticularsGeneral funds ($)Total government funds ($)
Assets:  
Cash & equivalents62,00062,000
Prepaid expense2,0002,000
Investment103,000103,000
Receivables81,00081,000
Inventory3,0003,000
  
Total assets251,000251,000
  
Liabilities: 
  
Salaries payable19,00019,000
Fund balance - 
For encumbrances12,00012,000
For inventory3,0003,000
For prepaid expenses2,0002,000
For unreserved215,000215,000
Total fund balance232,000232,000
  
Total liabilities251,000251,000

Table: (5)

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Chapter 12 Solutions

Fundamentals of Advanced Accounting

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What is Fund Accounting?; Author: Aplos;https://www.youtube.com/watch?v=W5D5Dr0j9j4;License: Standard Youtube License