Chapter 12, Problem 41P

To determine

Prepare the 2015 fund financial statements for the governmental funds and the proprietary funds.

Explanation of Solution

The statement of Revenues, Expenditures, and Other Changes in Fund Balance is as follows:

P City
Statement of Revenues, Expenditures, and Other Changes in Fund Balance
Fund Financial Statements- Government Funds
For the year ending December 31, 2015
	General Fund	Special Revenue Fund	Capital Projects Fund	Total Governmental Funds
Revenues
Property Taxes	$560,000	$0	$0	$560,000
Park	$8,000	$0	$0	$8,000
Operating Grant	$0	$37,000	$0	$37,000
School fees	$6,000	$0	$0	$6,000
Total Revenues	$574,000	$37,000	$0	$611,000
Expenditures:
Land	$0	$0	$20,000	$20,000
Buildings	$0	$0	$80,000	$80,000
Sidewalk	$0	$0	$10,000	$10,000
School Lunches	$0	$37,000	$0	$37,000
Supplies	$22,000	$0	$0	$22,000
School Bus	$102,000	$0	$0	$102,000
Salaries	$270,000	$0	$0	$270,000
Maintenance	$9,000	$0	$0	$9,000
Interest	$9,000	$0	$0	$9,000
Bond Payment	$5,000	$0	$0	$5,000
Total expenditures	$417,000	$37,000	$110,000	$564,000
Excess of revenues over expenditures	$157,000	$0	($110,000)	$47,000
Other Financing:
Other Financing Sources	$0	$0	$180,000	$180,000
Other Financing Uses	($90,000)	$0	$0	($90,000)
Total Other Financing	($90,000)	$0	$180,000	$90,000
Change in Fund Balance	$67,000	$0	$70,000	$137,000
Fund Balance-Beginning	$123,000	$0	$0	$123,000
Fund Balance-Ending	$190,000	$0	$70,000	$260,000

Table: (1)

The balance sheet is as follows:

P City
Balance Sheet
Fund Financial Statements- Government Funds
For the year ending December 31, 2015
	General Fund	Special Revenue Fund	Capital Projects Fund	Total Governmental Funds
Assets:
Cash	$169,400	$63,000	$70,000	$302,400
Property Tax Receivable	$90,000	$0	$0	$90,000
Receivable: School fees	$600	$0	$0	$600
Supplies	$5,000	$0	$0	$5,000
Total Assets	$265,000	$63,000	$70,000	$398,000
Liabilities
Salary payable	$30,000	$0	$0	$30,000
Deferred Revenue	$40,000	$63,000	$0	$103,000
Total Liabilities	$70,000	$63,000	$0	$133,000
Fund Balances
Non-spendable	$5,000	$0	$0	$5,000
Committed	$0	$0	$70,000	$70,000
Unassigned	$190,000	$0	$0	$190,000
Total Fund Balances	$195,000	$0	$70,000	$265,000
Total Liabilities and Fund Balances	$265,000	$63,000	$70,000	$398,000

Table: (2)

The Statement of Revenues, Expenditures, and Other Changes in Fund Balance is as follows in enterprise fund:

P City
Statement of Revenues, Expenditures, and Other Changes in Fund Balance
Fund Financial Statements- Proprietary Funds
For the year ending December 31, 2015
	Enterprise Fund
Operating revenues
Rent Revenues	$130,000
Operating expenses
Salaries	$45,000
Vacations	$5,000
Depreciation	$25,000
Total Operating Expenses	$75,000
Operating Income	$55,000
Non-operating expenses
Interest Expense	$13,000
Income Before Capital Contribution	$42,000
Capital Contribution	$20,000
Change in Net Assets	$62,000
Total Net assets-Beginning	$662,000
Total Net assets-Ending	$724,000

Table: (3)

The statement of net assets is as follows:

P City
Statement of Net Assets
Fund Financial Statements- Proprietary Funds
For the year ending December 31, 2015
	Enterprise Fund
Assets
Current Assets	$130,000
Cash
Rent Receivable	$20,000
Total Current Assets	$150,000
Non-current assets	$25,000
Parking Deck	$195,000
Buildings	$580,000
Total Noncurrent Assets	$775,000
Total assets	$925,000
Liabilities	$42,000
Current Liabilities
Salary payable	$3,000
Vacation payable	$5,000
Interest payable	$13,000
Total Current Liabilities	$21,000
Noncurrent liabilities
Notes payable	$180,000
Total liabilities	$201,000
Net assets
Invested in capital assets	$582,000
Unrestricted	$142,000
Total Net assets	$724,000

Table: (4)