The government-wide financial statements provide the following figures:• Education reports net expenses of $618,000.• Parks reports net expenses of $115,000.. Art museum reports net revenues of $65,250.• General government revenues for the year were $832,750 with an overall increase in the city's net position of $165,000.The fund financial statements provide the following for the entire year:• The general fund reports a $52,750 increase in its fund balance.The capital projects fund reports a $57,250 increase in its fund balance.• The enterprise fund reports a $79,500 increase in its net position.The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2024 and indicate how tocorrect any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations asIndependent.In 2024, the City of Coyote receives a $495,000 cash grant from the state to reduce air pollution. Although a special revenue fundcould have been set up, the money remains in the general fund. The cash was received immediately but will have to be returned if thecity does not lower its air pollution by 25 percent by 2028. On December 31, 2024, Coyote spends $376,000 of the money for a largemachine to help begin the process of reducing air pollution City officials expect the machine to last for five years. The city recordedthe cost as an expenditure in the general fund but as an asset on the government-wide financial statements, where it was depreciatedbased on the straight-line method and the half-year convention. Because the city received the money, it recorded all $495,000 as arevenue on both the fund and the government-wide financial statements.Required:a. What was the correct change for 2024 in the total fund balance reported by the general fund?b. What was the correct overall change in the net position reported on the government-wide financial statements?a. Correct changeb. Correct changeIncrease or Decrease

Deferred revenue is the difference in timing between cash receipt and revenue recognition in accrual…

Answered: - Education reports net expenses of…

- Education reports net expenses of $618,000. -Parks reports net expenses of $115,000. Art museum reports net revenues of $65,250. General government revenues for the year were $832,750 with an ove

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The government - wide financial statements provide the following figures: Education reports net expenses of $600,000. Parks reports net expenses of $100,000. Art museum reports net revenues of $50,000. General government revenues for the year were $800,000 with an overall increase in the city's net position of $150,000. The fund financial statements provide the following for the entire year: The general fund reports a $30,000 increase in its fund balance. The capital projects fund reports a $40,000 increase in its fund balance. The enterprise fund reports a $60,000 increase in its net position. The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent. The City of Coyote mails property tax bills for 2021 to its citizens during August 2020. Property owners could make payments…
The Pension Trust Fund maintained by the city of Marydell had the following transactions and events during its current fiscal year:1. Contributions of $960,000 were received from General Fund employees, and theGeneral Fund contributed its share of $160,000.2. The fund paid $800 for investment management fees.3. Investments held by the fund increased in value by $5,600.4. Depreciation on fund capital assets totaled $1,2805. Retirement benefits of $12,320 were paid to retirees.6. Interest of $4,000 and dividends of $2,240 were received frominvestments.Prepare journal entries to record the transactions and events above for the Pension Trust Fund.If an entry affects more than one debit or credit account, enter the accounts in order ofmagnitude (largest to smallest balances), debits first. Account Debit Credit To record contributions received. To record payment of management fees. To record…
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The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020: 1. Beginning balances were: Cash, $110,000; Taxes Receivable, $215,000; Accounts Payable, $65,000; and Fund Balance, $260,000. 2. The budget was passed. Estimated revenues amounted to $1,400,000 and appropriations totaled $1,394,000. All expenditures are classified as General Government. 3. Property taxes were levied in the amount of $1,000,000. All of the taxes are expected to be collected before February 2021. 4. Cash receipts totaled $970,000 for property taxes and $340,000 from other revenue. 5. Contracts were issued for contracted services in the amount of $125,000. 6. Contracted services were performed relating to $111,000 of the contracts with invoices amounting to $106,000. 7. Other expenditures amounted to $1,040,000. 8. Accounts payable were paid in the amount of $1,204,000. 9. The books were closed. Required: a. Prepare journal entries for the above…
Edwards City has the following information for its general fund for the upcoming fiscal year. Which of the following would be the appropriate effect to budgetary fund balance when the budget is recorded? Estimated revenue Appropriations Property tax 3,500,000 Salaries 2,690,000 Sales tax 490,000 Capital items 1,320,000 Other 50,000 Other 15,000 None of these Credit budgetary fund balance $30,000 Credit budgetary fund balance $15,000 Debit budgetary fund balance $30,000
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The City of Lynnwood was recently incorporated and had the following transactions for the fiscal year ended December 31. The city council adopted a General Fund budget for the fiscal year. Revenues were estimated at $2,000,000 and appropriations were $1,990,000. Property taxes in the amount of $1,940,000 were levied. It is estimated that $9,000 of the taxes levied will be uncollectible. A General Fund transfer of $25,000 in cash and $300,000 in equipment (with accumulated depreciation of $65,000) was made to establish a central duplicating internal service fund. A citizen of Lynnwood donated marketable securities with a fair value of $800,000. The donated resources are to be maintained in perpetuity with the city using the revenue generated by the donation to finance an after-school program for children, which is sponsored by the culture and recreation function. Revenue earned and received as of December 31 was $40,000. The city’s utility fund billed the city’s General Fund…