EBK ADVANCED ACCOUNTING
13th Edition
ISBN: 8220103675932
Author: Hoyle
Publisher: YUZU
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Question
Chapter 17, Problem 38P
To determine
Prepare the 2017 fund financial statements for the governmental funds and the proprietary funds.
Expert Solution & Answer
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, 2017 | ||||
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, 2017 | ||||
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, 2017 | |
Enterprise Fund | |
Operating revenues | |
Rent Revenues | $130,000 |
Operating expenses | |
Salaries | $45,000 |
Vacations | $5,000 |
$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, 2017 | |
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)
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Chapter 17 Solutions
EBK ADVANCED ACCOUNTING
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