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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