The accompanying combined statement of revenues, expenditures, and fund balance was drawn from the statements of Plant

Question:

The accompanying combined statement of revenues, expenditures, and fund balance was drawn from the statements of Plant City, Florida, which, of course, included a general and other funds that are not shown. Suppose, however, that these were the only funds maintained by the city.
1. Prepare a government-wide statement of net position (balance sheet) and a statement of activities. Make the following assumptions:
€¢ At year-end the city had $4.39 million in cash and equivalents (its only assets) in its capital projects fund. It had and other short-term liabilities in that fund of $0.71 million. It had neither assets nor liabilities in its debt service fund.
€¢ At year-end the city had $28.28 million in capital assets (€˜€˜construction in process and other assets€™€™).
€¢ It charged depreciation of $2.1 million for the year. Accumulated depreciation at year-end was $10.4 million.
€¢ It had $3.12 million in general obligation long-term debt.
€¢ Interest paid for the year was equal to interest expense. You need not reconcile beginning and ending balances of net position, and the statement of activities can be in the €˜€˜traditional€™€™ format (i.e., with the revenues and expenses shown in rows rather than columns).
2. Comment on the main differences in the revenues, expenditures/expenses, and other ï¬nancing sources/uses as reported on the fund statements and on the government-wide statements. Would you expect that over the life of the government the cumulative changes in fund balance (net position) as reported on the two types of statements would be different?Explain.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...