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Chapter 14 advances past the format of the Government-Wide financial statements to the actualconstruction of them.
Best way to learn, is by doing an example.
REQUIRED: Prepare a conversion worksheet for Tierney County to derive the governmental activities information to be reported in the county’s government-wide statement of net assets and statement of activities for 20X5.
ENTER THE PRECLOSING TRIAL BALANCE INFORMATION FOR TIERNEY COUNTYGOVERNMENTAL FUNDS INTO THE WORKSHEET.
This is done for you already on your handout.
PAGE ONE OF WORKSHEET
BALANCES AT $22,860,075 ==========
PAGE TWO OF WORKSHEET
ENTER IN THE GCA AND GLTL INFORMATION DIRECTLY BELOW THEPRE-CLOSING TRIAL BALANCE INFORMATION.
SHOW A SEPARATE BALANCING FIGURE FOR THISINFORMATION.
This is also done for you already on your handout.
THIS BALANCES AT $36,100,575
Reclassify capital outlay expenditures as capital assets
(2) are listed on the pre-closing trial balance: First page CAPITAL OUTLAY EXPENDITURES
For construction………….. $8,890,000For equipment…………….. 203,700
Construction-in-progress…….. $8,890,000Machinery & Equipment…….. 203,700
Construction expenditures………… $8,890,000Equipment expenditures…………… 203,700
NOTE: These entries ARE NOT REALLY MADE in any journal/ledger.They are just WORKSHEET entries made to adjust governmental fundsto GOVERNMENT-WIDE accounts.
Entry posted on worksheet to CONVERT.
1
Construction-in-progress…….. $8,890,000Machinery & Equipment…….. 203,700
Construction expenditures………… $8,890,000Equipment expenditures…………… 203,700
PAGE TWO OF WORKSHEET
GCA&GLTL
NOW RECORD THE CREDITS ON THE 1ST PAGE THE WORKSHEET.
1
PAGE ONE OF WORKSHEET
Construction-in-progress…….. $8,890,000Machinery & Equipment…….. 203,700
Construction expenditures………… $8,890,000Equipment expenditures…………… 203,7001
Eliminate GCA sale proceeds and record a gain onthe capital asset sale
$175,000 is listed as a proceed from the Sale of GCA on pre-closing trial balance (PCTB) top oftop of page 2 of worksheetpage 2 of worksheet.
Need to also know:
The capital asset sold was for equipment which cost $500,000, and had accumulatedThe capital asset sold was for equipment which cost $500,000, and had accumulateddepreciation at the January 1 sale date of $400,000.depreciation at the January 1 sale date of $400,000.
Entry made for governmental accounting
Cash……..$175,000Proceeds from sale of capital equipment………$175,000
Entry which would have been made for government-wide (full-accrual)
Cash…….$175,000Acc/Dep.mach&ept.. 400,000
Equipment……..$500,000Gain on saleof equipment… $ 75,000
Entry posted to worksheet to CONVERT.
Acc/Depmach & eqt . $400,000Proceeds…. 175,000
Equipment………$500,000Gain………………. 75,000
NOW POST TO WORKSHEET
2
PAGE TWO OF WORKSHEET
GCA&GLTL
Acc/Depmach & eqt . $400,000Proceeds…. 175,000
Equipment………$500,000Gain………………. 75,000
2
Record Depreciation
Depreciation expense is of course, not recorded for governmental funds.
Additional information:
Depreciation expense on buildings and on machinery and equipment is associated withfunctions as follows:
General government…………. 10%
Public Safety…………………. 50%
Highways and Streets………. 25%
Heath and sanitation………. 10%
Other………………………….. 5%
Additionally:
The county depreciates equipment over 5 years, buildings over 20 years, and streets androads over 30 years. Assume zero salvage values.
Record Depreciation
Depreciation expense on buildings and on machinery and equipment is associated withfunctions as follows:
General government…………. 10%
Public Safety…………………. 50%
Highways and Streets………. 25%
Heath and sanitation………. 10%
Other………………………….. 5%
From PCTB:
Buildings……… $4,375,000
20 yrs (given)
= $218,750 depreciation expense for 20X5.
x 218,750 = $21,875x 218,750 = $109,375x 218,750 = $54,687* roundingx 218,750 = $21,875x 218,750 = $10,938
wait to post to worksheetuntil all depreciation is calculated.
Record Depreciation
Depreciation expense on buildings and on machinery and equipment is associated withfunctions as follows:
General government…………. 10%
Public Safety…………………. 50%
Highways and Streets………. 25%
Heath and sanitation………. 10%
Other………………………….. 5%
The county depreciates equipment over 5 years, buildings over 20 years, and streets androads over 30 years. Assume zero salvage values.
From PCTB:
Mach & Ept……… ($1,400,000 beg + $203,700 adj(1))
5 years = $320,740
= $320,740 depreciation expense for 20X5.
x 320,740 = $32,074x 320,740 = $160,370x 320,740 = $ 80,186*roundingx 320,740 = $32,074x 320,740 = $16,036
218,750 = $21,875218,750 = $109,375218,750 = $54,687*rounding218,750 = $21,875218,750 = $10,938
SUM
$53,949269,745134,873
53,949 26,974
Depreciation expense-Gen Gov…$32,074Depreciation expense-Pub Saf…..160,370Depreciation expense-Highways.. 80,186Health & Sanitation……………… 32,074Other……………………………… 16,036
Accumulated Depreciation- Machinery & Equipment………$320,740
These are posted onworksheet as summations of bothexpenses but theaccumulated depreciat.for mach & buildingsare posted separately.
Depreciation expense-Gen Gov…$21,875Depreciation expense-Pub Saf…..109,375Depreciation expense-Highways.. 54,687Health & Sanitation……………… 21,875Other……………………………… 10,938
Accumulated Depreciation- Building………$218,750
PLUS
•The $500,000 sold should be subtracted beforedepreciating but the authors of problem didn’t do that.
PAGE ONE OF WORKSHEET Depreciation expense-Gen Gov…$32,074Depreciation expense-Pub Saf…..160,370Depreciation expense-Highways.. 80,186Health & Sanitation……………… 32,074Other……………………………… 16,036
Accumulated Depreciation- Machinery & Equipment………$320,740
Depreciation expense-Gen Gov…$21,875Depreciation expense-Pub Saf…..109,375Depreciation expense-Highways.. 54,687Health & Sanitation……………… 21,875Other……………………………… 10,938
Accumulated Depreciation- Building………$218,750
$32,074 + $21,875 = $53,949
3a
3a
PAGE ONE OF WORKSHEET Depreciation expense-Gen Gov…$32,074Depreciation expense-Pub Saf…..160,370Depreciation expense-Highways.. 80,186Health & Sanitation……………… 32,074Other……………………………… 16,036
Accumulated Depreciation- Machinery & Equipment………$320,074
Depreciation expense-Gen Gov…$21,875Depreciation expense-Pub Saf…..109,375Depreciation expense-Highways.. 54,687Health & Sanitation……………… 21,875Other……………………………… 10,938
Accumulated Depreciation- Building………$218,750
$160,370 + $109,375 = $269,745
3a
3a
PAGE ONE OF WORKSHEET Depreciation expense-Gen Gov…$32,074Depreciation expense-Pub Saf…..160,370Depreciation expense-Highways.. 80,186Health & Sanitation……………… 32,074Other……………………………… 16,036
Accumulated Depreciation- Machinery & Equipment………$320,074
Depreciation expense-Gen Gov…$21,875Depreciation expense-Pub Saf…..109,375Depreciation expense-Highways.. 54,687Health & Sanitation……………… 21,875Other……………………………… 10,938
Accumulated Depreciation- Building………$218,750
$80,186 + $54,687 = $134,873
3a
3a
PAGE ONE OF WORKSHEET Depreciation expense-Gen Gov…$32,074Depreciation expense-Pub Saf…..160,370Depreciation expense-Highways.. 80,186Health & Sanitation……………… 32,074Other……………………………… 16,036
Accumulated Depreciation- Machinery & Equipment………$320,074
Depreciation expense-Gen Gov…$21,875Depreciation expense-Pub Saf…..109,375Depreciation expense-Highways.. 54,687Health & Sanitation……………… 21,875Other……………………………… 10,938
Accumulated Depreciation- Building………$218,750
$32,074 + $21,875 =$53,949
3a
3a
PAGE ONE OF WORKSHEET Depreciation expense-Gen Gov…$32,074Depreciation expense-Pub Saf…..160,370Depreciation expense-Highways.. 80,186Health & Sanitation……………… 32,074Other……………………………… 16,036
Accumulated Depreciation- Machinery & Equipment………$320,074
Depreciation expense-Gen Gov…$21,875Depreciation expense-Pub Saf…..109,375Depreciation expense-Highways.. 54,687Health & Sanitation……………… 21,875Other……………………………… 10,938
Accumulated Depreciation- Building………$218,750
$16,036 + $10,938 = $26,974
now record the accumulated depreciations
3a
3a
PAGE TWO OF WORKSHEET
GCA&GLTL
Depreciation expense-Gen Gov…$21,875Depreciation expense-Pub Saf…..109,375Depreciation expense-Highways.. 54,687Health & Sanitation……………… 21,875Other……………………………… 10,938
Accumulated Depreciation- Building………$218,750
Depreciation expense-Gen Gov…$32,074Depreciation expense-Pub Saf…..160,370Depreciation expense-Highways.. 80,186Health & Sanitation……………… 32,074Other……………………………… 16,036
Accumulated Depreciation- Machinery & Equipment………$320,740
3a
3a
Record DepreciationNOT quite done, still INFRASTRUCTURE ASSETS.
The balance of Streets and Roads is $7,000,000
30 years left = $233,333
Entry to record depreciation of infrastructure
Highways & streets depreciation expense…..$233,333Accumulated depreciation-infrastructure streets………..$233,333
PAGE ONE OF WORKSHEET
Highways & streets depreciation expense…..$233,333Accumulated depreciation-infrastructure streets………..$233,333
now post the credit
3b
PAGE TWO OF WORKSHEET
GCA&GLTL
Highways & streets depreciation expense…..$233,333Accumulated depreciation-infrastructure streets………..$233,333
3b
Reclassify bond proceeds and bond issue costsBond issuance occurred at year-end.
THERE ARE TWO BONDS ON THE BOOKS! ONE IS LISTED IN THE GOVERNMENTAL FUNDSINFO AS BONDS $6.3M AND PREMIUMS $42K. (Bottom page 1) THESE ARE OFS.
THE OTHER ONE IS LISTED IN THE GLTL AS B/P $2.8M, PREM $70K, AND DEF BOND ISSUE COSTS 28k[This stuff is already at fullThis stuff is already at full –accrualaccrual and doesn’t need adjusting].
Right now in the PCTB the following accounts are present:
Bonds……………………pg 2……. $6,300,000 (CR)Bond premiums………pg 2…….. 42,000 (CR)Bond issue costs………pg 1…. 35,000 (DR)
Entry which was made to record bond issue:
Cash……………..….$6,307,000Bond issue costs…$ 35,000
OFS-Bonds…………………$6,300,000OFS-Bond premiums……..$ 42,000
Entry which would be made in govt-wide
Cash………..$6,307,000Def bond issuecosts………..$ 35,000
Bonds payable…$6,300,000Premium on b/p…$ 42,000
Entry to roll-over into GOVT-WIDE
OFS-Bonds………..$6,300,000OFS-Bond Prem… $ 42,000Def bond issuecosts………… $35,000
Bonds payable……..$6,300,000Premium on b/p….. $ 42,000Bond issue costs…..$35,000
GCA&GLTL
OFS-Bonds………..$6,300,000OFS-Bond Prem… $ 42,000Def bond issuecosts………… $35,000
Bonds payable……..$6,300,000Premium on b/p….. $ 42,000Bond issue costs…..$35,000
4BOTTOM OF PAGE ONE OF WORKSHEET
PAGE TWO OF WORKSHEET
GCA&GLTL
OFS-Bonds………..$6,300,000OFS-Bond Prem… $ 42,000Def bond issuecosts………… $35,000
Bonds payable……..$6,300,000Premium on b/p….. $ 42,000Bond issue costs…..$35,000
now post the last credit
4
PAGE ONE OF WORKSHEETOFS-Bonds………..$6,300,000OFS-Bond Prem… $ 42,000Def bond issuecosts………… $35,000
Bonds payable……..$6,300,000Premium on b/p….. $ 42,000Bond issue costs…..$35,000
4
Eliminate GLTL retirement expenditures and reduce liability
Right now the PCTB contains the following:
Bond Principal Retirement $700,000 (DR).
Entry that was made
Bond Principal Retirement expenditure….$700,000Cash……………………………………$700,000
Entry that would be made in full accrual. govt-w
Bonds payable….$700,000Cash…………$700,000
Entry to ROLLOVER
Bonds payable……………….…..$ 700,000Bond Principal Retirement Expenditure…………$700,000
PAGE TWO OF WORKSHEET
GCA&GLTL
now post the credit
Bonds payable……………….…..$ 700,000Bond Principal Retirement Expenditure…………$700,0005
PAGE ONE OF WORKSHEET
Bonds payable……………….…..$ 700,000Bond Principal Retirement Expenditure…………$700,0005
Record bond premium amortizationThe remaining term of the bonds payable with which the premium
($70,000) and bond issue costs ($28,000) are associated is10 years. Use SL amortization.
THIS IS FOR THE BOND THAT IS ALREADY ESTABLISHED AS A BOND IN THE GLTL
Entry which was made to amortize premium in govt’l funds
NONE
Entry to FIX and rollover to govt-wide $70,000/10 = $7,000 amortization
Premium on b/p……..$ 7,000Interest on bonds………$7,000
* Bond issue costs amortized in step 9
PAGE TWO OF WORKSHEET
GCA&GLTL
now post the credit
Premium on b/p……..$ 7,000Interest on bonds………$7,000(reduces the interest expense)
6
PAGE ONE OF WORKSHEET
Premium on b/p……..$ 7,000Interest on bonds………$7,000(reduces the interest expense)
6
Record bond issue cost amortization
The remaining term of the bonds payable with which the premium($70,000) and bond issue costs ($28,000) are associated is10 years. Use SL amortization.
$28,000 / 10 = $2,800 amortization.
Interest on bonds……. $2,800Deferred bond issue costs……..$2,800
PAGE ONE OF WORKSHEET
Interest on bonds……. $2,800Deferred bond issue costs……..$2,8007
PAGE TWO OF WORKSHEET
GCA&GLTL
Interest on bonds……. $2,800Deferred bond issue costs……..$2,8007
Record accrued interest and adjust beginningnet assets and interest expense.
The accrued interest associated with bonds at 12/31/X5 was $ 99,000.The January 1, 20X5 balance was $87,500.
$87,500 BOY vs $99,000 EOY = $11,500 increase in accrued interest payable.
This increase should have resulted in this entry for GOVT-WIDE
Interest expense……..$11,500Accrued interest on bonds (payable)……. $11,500
To record this entry now in adjustments of worksheet
Interest on bonds…….. $11,500Accrued interest on bonds……$11,500
We also need to pick up the beginning balance of accrued interest because its not currentlypresent in the governmental accounts.
Net Assets (to reflect past interest expenses)….. $87,500Accrued interest payable on bonds……………..$87,500
PAGE ONE OF WORKSHEET
Interest on bonds…….. $11,500Accrued interest on bonds……$11,500
Net Assets (to reflect past interest expenses)….. $87,500Accrued interest payable on bonds……………..$87,500
now record rest.
8b
8a
PAGE TWO OF WORKSHEET
GCA&GLTL
Interest on bonds…….. $11,500Accrued interest on bonds……$11,500
Net Assets (to reflect past interest expenses)….. $87,500Accrued interest payable on bonds……………..$87,500
8b
8a
Adjust claim/adjustments expenses fordecreases in long-term liability for C&J.
The balance of the long-term claims and judgments obligationat 12/31/20X5 was $200,000. All claims and judgments of the county are related to health and sanitation.
The PCTB shows the BOY balance is $490,000 $490,000 - $200,000 = $290,000 decrease.
Entry to make to record reduction
Liability for C&J….. $290,000Health & Sanitation expenditures…..$290,000Entry that was made.
Health and Sanitation expenditures…. $290,000Cash…………………………………….$290,000
•know this because the long-term liability for C&J came down $290K andit was all for health/sanitation.
Entry that would have been made in Govt-Wide
Liability for C&J………… $290,000Cash……………………….$290,000
implies that $290Kwas treated as an expenditure while itshould have been treatedas reducing a payableas cash was paid toreduce it.
PAGE TWO OF WORKSHEET
GCA&GLTL
Liability for C&J….. $290,000Health & Sanitation expenditures…..$290,000
now post credit
9
PAGE ONE OF WORKSHEET
Liability for C&A….. $290,000Health & Sanitation expenditures…..$290,0009
Adjust compensated absences expenses for increasein long-term liability for compensated absences
The balance of the long-term liability for compensated absences at12/31/X5, was $425,000. Compensated absence liabilities are generated equally by the general government, public safety,streets and roads, and health/sanitation functions.
Beg. Bal is $350,000 vs $425,000 = $75,000 increase. Implies that $75,000 needs to be chargedas an expenditure and the payable increase needs to be recorded.
$75,000 / 4 = $18,750 Entry to record Govt-Wide
CA Expenditure-Gen Gov…. $18,750CA Expenditure-Pub Safety.. 18,750CA Expenditure-Streets/Roads..18,750CA Expenditure- Health/San…. 18,750
CA liability-longterm…………….$75,000
PAGE ONE OF WORKSHEETCA Expenditure-Gen Gov…. $18,750CA Expenditure-Pub Safety.. 18,750CA Expenditure-Streets/Roads..18,750CA Expenditure- Health/San…. 18,750
CA liability-longterm…………….$75,000
now post credit
10
PAGE TWO OF WORKSHEET
GCA&GLTL
CA Expenditure-Gen Gov…. $18,750CA Expenditure-Pub Safety.. 18,750CA Expenditure-Streets/Roads..18,750CA Expenditure- Health/San…. 18,750
CA liability-longterm…………….$75,000
10
Eliminate deferred tax revenues.
The January 1, 20X5 balance of Deferred Tax Revenues was $84,000.
First, take the beginning balance of deferred tax revenue, and give it to net assetsbecause it should have been recognized as revenue in 20X4.
Deferred Revenues………… $84,000Net Assets…………………..$84,000
Deferred Revenue has an ending balance of $107,800 which means thatit has grown during 20X5 in the amount of $107,800 - $84,000 = $23,800
Entry to get rid of $23,800 of deferred revenue that increased during the yearbecause it would be recognized as revenue in 20X5 (not deferred).
Deferred Revenues……….. $23,800Revenues (Taxes)…………..$23,800
PAGE ONE OF WORKSHEET
Deferred Revenues………… $84,000Net Assets…………………..$84,000
Deferred Revenues……….. $23,800Revenues (Taxes)…………..$23,800
The deferred revenues sum to $107,800
now post the credit to net assets
11
11
PAGE TWO OF WORKSHEET
GCA&GLTL
Deferred Revenues………… $84,000Net Assets…………………..$84,000
11
Eliminate interfund payables and receivablesbetween governmental funds.
Just go through the PCTB and eliminate it. There’s only one.
Due to Special Revenue Fund…….. $3,500Due from General fund…...................….$3,500
PAGE ONE OF WORKSHEET
Due to Special Revenue Fund…….. $3,500Due from General fund…...................….$3,500
12
Eliminate transfers between governmentalfunds.
Again, go through the PCTB and find/eliminate them.
Transfers from GF……………..….. $616,000Transfers from Special Rev Funds $70,000
Transfers to CPF………………….. $56,000Transfers to DSF…………………. $560,000Transfers to GF…………………….$ 70,000
PAGE TWO OF WORKSHEET
GCA&GLTL
Transfers from GF……………..….. $616,000Transfers from Special Rev Fund.… $70,000
Transfers to CPF………………….. $56,000Transfers to DSF…………………. $560,000Transfers to GF…………………….$ 70,000
13
Reclassify beginning fund balance as netassets.
Fund Balance…… $695,049 Net assets……….$695,049
not allowed to call it “fund balance” in GOVT-WIDE
PAGE ONE OF WORKSHEET
Fund Balance…… $695,049 Net assets……….$695,049
now post credit to NA
14
PAGE TWO OF WORKSHEET
GCA&GLTL
Fund Balance…… $695,049 Net assets……….$695,049
14
Worksheet is COMPLETEWorksheet is COMPLETE
Using the information derived from the worksheet present the government activities in the government-wide financial statements for Tierney County for 20X5.
Tierney CountyStatement of Activities
For the Year Ended December 31, 20X5
Program Revenues Net (Expenses) Revenues and Changes in Net AssetsPrimary Government
Charges Operating Governmental Business-Type Total for Grants and Capital Activities Activities
Functions: Expenses Services Contributions Grnts
Primary gov.Gov Activities:
Gen Government $347,099 ($347,099) worksheet GW Lunch Exp DR.
Public Safety 1,705,995 444,500
$311,500 (License & Permits) + $133,000 (Fines & Forfeitures) = $444,500. (We’re told they arepublic safety in piece of info #4). worksheet GW Lunch CR
100,000
#7 notes that $100K of $420 worksheet GW Lunch CR is for public safety.
(1,161,495)
Using the information derived from the worksheet you prepared for P14-5, present the government activities in the government-wide financial statements for Tierney County for 20X5.
Tierney CountyStatement of Activities
For the Year Ended December 31, 20X5
Program Revenues Net (Expenses) Revenues and Changes in Net AssetsPrimary Government
Charges Operating Governmental Business-Type Total for Grants and Capital Activities Activities
Functions: Expenses Services Contributions Grnts
Primary gov.Gov Activities:
Gen Government $347,099 ($347,099)
Public Safety 1,705,995 444,500 100,000 (1,161,495)
Highways & Streets
1,248,656 worksht GW Lunch DR 7,231,000 5,982,344
Health &Sanitation
(54,901)actually isnegativeexpensews GW(DR)
320,000
rest of $420,000 grant;told in #7 its highwaysand streets ws GW Lunch CR
374,901
Told its highways &streets in piece ofinfo #7 WS GW Lunch CR
Using the information derived from the worksheet you prepared for P14-5, present the government activities in the government-wide financial statements for Tierney County for 20X5.
Tierney CountyStatement of Activities
For the Year Ended December 31, 20X5
Program Revenues Net (Expenses) Revenues and Changes in Net AssetsPrimary Government
Charges Operating Governmental Business-Type Total for Grants and Capital Activities Activities
Functions: Expenses Services Contributions Grnts
Primary gov.Gov Activities:
Gen Government $347,099 ($347,099)
Public Safety 1,705,995 444,500 100,000 (1,161,495)
Highways & Streets
1,248,656 7,231,000 5,982,344
Health &Sanitation
(54,901) 320,000 374,901
Other 92,074 (92,074) ws GW Lunch DR
Interest 416,275
$363,775 (interest on bonds) + $52,500 (fiscal agent fees) ws GW Lunch DR
(416,275)
Using the information derived from the worksheet you prepared for P14-5, present the government activities in the government-wide financial statements for Tierney County for 20X5.
Tierney CountyStatement of Activities
For the Year Ended December 31, 20X5
Program Revenues Net (Expenses) Revenues and Changes in Net AssetsPrimary Government
Charges Operating Governmental Business-Type Total for Grants and Capital Activities Activities
Functions: Expenses Services Contributions Grnts
Primary gov.Gov Activities:
Gen Government $347,099 ($347,099)
Public Safety 1,705,995 444,500 100,000 (1,161,495)
Highways & Streets
1,248,656 7,231,000 5,982,344
Health &Sanitation
(54,901) 320,000 374,901
Other 92,074 (92,074)
Interest 416,275 (416,275)
Total governmentactivities…… $3,755,198 $444,500 $420,000 $7,231,000 $4,340,302
Using the information derived from the worksheet you prepared for P14-5, present the government activities in the government-wide financial statements for Tierney County for 20X5.
Tierney CountyStatement of Activities
For the Year Ended December 31, 20X5
Program Revenues Net (Expenses) Revenues and Changes in Net AssetsPrimary Government
Charges Operating Governmental Business-Type Total for Grants and Capital Activities Activities
Functions: Expenses Services Contributions Grnts
General Revenues: Property taxes, levied forgeneral purposes… $3,418,800 GW lunch CRUnrestricted grant rev 367,500 GW lunch CRInvestment income 600,000 GW lunch CROther…………… 7,000 GW lunch CRGain on sale of capital assets.. 75,000 GW lunch CR toward bottom WSTransfers from enterprise 63,000 GW lunch CR-------------------------------------------------------Total general revenuesand transfers………… $4,531,300Change in net assets.. 8,871,602 (4,340,302 + 4,531,300)Net Assets-beg……. 2,767,049 (given)Net assets-end…… $11,638,651
Total governmentactivities…… $3,755,198 $444,500 $420,000 $7,231,000 $4,340,302
Tierney County
Statement of Net AssetsDecember 31, 20X5
ASSETS:Cash………………………………. $1,348,200Investments…………………….. 7,355,600Taxes Receivable (net)………… 150,500 (189K-38,500)Interest/penalities Receivable…(net) 4,774 (5,250 – 476)Accounts Receivable…(net)… 43,750 (45,500 – 1,750)Accrued Interest Receivable… 191,800Internal Balances…(to enterprise fund) (11,550) shown with the assetsInventory of Materials & Supplies.. 16,450Deferred Bond Issue Costs…. 60,200
Capital Assets, net: Land………………………………. 437,500 Buildings (net) …………………. 1,426,250 (4,375,000 – 2,948,750) Machinery & Equipment (net) .. 657,960 (1,103,700 – 445,740) Infrastructure (Streets & Roads)net.. 2,566,667(7,000,000 – 4,433,333) CIP………………………………… 8,890,000
----------------13,978,377----------------
Total Assets………………… $23,138,101
Tierney CountyStatement of Net Assets
December 31, 20X5
ASSETS:Cash………………………………. $1,348,200Investments…………………….. 7,355,600Taxes Receivable (net)………… 150,500 Interest/penalities Receivable…(net) 4,774 Accounts Receivable…(net)… 43,750 Accrued Interest Receivable… 191,800Internal Balances…(to enterprise fund) (11,550)Inventory of Materials & Supplies.. 16,450Deferred Bond Issue Costs…. 60,200
Capital Assets, net: Land………………………………. 437,500 Buildings (net) …………………. 1,426,250 Machinery & Equipment (net) .. 657,960 Infrastructure (Streets & Roads)net.. CIP………………………………… 8,890,000
----------------13,978,377----------------
Total Assets………………… $23,138,101
LIABILITIES:
Vouchers payable……….. $1,016,400Accrued sal/wages payable 17,500Contracts/p- Retained % 350,000Interest/p (on current debt) 100,050Def Operat Grnt Rev…… 360,500Def Cap Grnt Rev…. 525,000Noncapital Liabilities: B/P & prem………………. 8,505,000 C&J payable…………….. 200,000 Compen. Absence p…. 425,000Due in more than one year… 9,130,000
Total liabilities………… $11,499,450
$1,050 interest/p current debt + 99,000 from bond interestadjustments (bttm worksheet)
The NET ASSETS are presented in (3) classifications:
1. Invested in Capital Assets, Net of Related Debt
Capital Assets net of accumulated depreciation...........
Capital Assets, net:
Land………………………………. 437,500
Buildings (net) …………………. 1,426,250
Machinery & Equipment (net) .. 657,960
Infrastructure (Streets & Roads)net.. 2,566,667
CIP………………………………… 8,890,000
--------------
$13,978,377
$13,978,377
The NET ASSETS are presented in (3) classifications:
1. Invested in Capital Assets, Net of Related Debt
Capital Assets net of accumulated depreciation........... $13,978,377
- Bonds payable (less portion equal to unspent proceeds)
$8,505,000 B/P (including premium)-1,659,000 (Piece of info #1: Unexpended bond proceeds
at December 31, 20X5 )----------------$6,846,000
(6,846,000)
+ Bond issue costs........................................................ 60,200(These are added because they are an asset and relatedto bonds which relate to capital assets).-Contracts payable....................................................... (350,000) (contracts would be related to capital assets-assume)
$6,842,577
2. Restricted Net Assets (after conversions and eliminations)
Piece of info #2 tells us:
Assets include cash and investments restricted for:
Debt service (from which interest is payable)..... $300,000
Special Programs.............................................. $1,600,000
Debt Service Fund restricted assets................. $300,000
-Debt Service Fund liabilities-............................ (99,000) (this is the accrued interest on non-capital bonds)
$201,000The only debt discussed as being serviced from the DSF is for the bonds.Thus only the bond interest is subtracted here.
This is not the end because the special programs are also restricted
2. Restricted Net Assets (after conversions and eliminations)
Piece of info #2 tells us:
Assets include cash and investments restricted for:
Debt service (from which interest is payable)..... $300,000
Special Programs.............................................. $1,600,000
Special Program restricted assets................. $1,600,000
- Deferred operating grant revenue.............. (360,500)
$1,239,500The operating grant would be used to run somethinglike a special program.
3. Unrestricted net assets (after conversions and eliminations).
General fund unrestricted NA..................
Cash...... $1,348,200+ Investments 7,355,600-Restricted cash and investments given 1,900,000 (piece of info #2; page 556)-Unexpended proceeds 1,659,000+ Taxes/Rec 150,500 (189,000 – 38,500)+ Int/Pen Rec 4,774 (5,250 – 476)+ A/R...... 43,750+Accrued IntRec........ 191,800+Internal Bal (11,550)+ Material & Sup 16,450
----------------- 5,540,524
$5,540,524
3. Unrestricted net assets (after conversions and eliminations).
General fund unrestricted NA.................. $ 5,540,524
- General Fund liabilities........................
Vouchers Payable 1,016,400 Salaries/wages p...... 17,500 Interest payable (bal) 1,050 Def Capital Grant rev... 525,000 *this is where authors placed this --------------------
$1,559,950
$1,559,950
3. Unrestricted net assets (after conversions and eliminations).
General fund unrestricted NA.................. $ 5,540,524
- General Fund liabilities........................ $1,559,950
-Noncapital asset related C&J payable.. 200,000
-Noncapital asset related CA payable..... 425,000
$3,355,574
3. Unrestricted net assets (after conversions and eliminations).
This can also be PLUGGED since we already know 2/3 of the components and thetotal net assets of $11,638,651
NET ASSETS:
Invested in capital assets net of related debt.... $6,842,577
Restricted for:Debt service......... $201,000Special Programs.1,239,500
Unrestricted:
Total Net Assets... $11,638,651
$3,355,574