Chapter 16, Problem 56P

The City of Coyote mailed property tax bills for 2018 to its citizens during August 2017. Payments could be made early to receive a discount. The levy becomes legally enforceable on February 15, 2018. All money received must be spent during 2018 or later. The total assessment is $300,000; 40 percent of that amount, less a 10 percent discount, is collected in 2017. The city expects to receive all of the remaining money during 2018 with no discount. During 2017, the government increased cash as well as a revenue for the amount received. No change was made in creating the government-wide financial statements.

1. a. What was the correct overall change in the city’s net position as shown on the government-wide financial statements?
2. b. What was the correct change for 2017 in the fund balance reported in the general fund?