Question

The City of Lynn operates its municipal airport. The trial balance of the Airport Fund as of January 1, 20X0, was as follows:


The following transactions took place during the year:
1. Revenues collected in cash: aviation revenues, $340,500; concession revenues, $90,000; revenues from airport management, $30,000; revenues from sales of petroleum products, $10,500.
2. Expenses (all paid in cash with the exception of $24,000, which remained unpaid at December 31) were operating, $222,000; maintenance, $75,000; general and administrative, $73,000.
3. Bad debts written off during the year, $1,900.
4. The vouchers payable outstanding on January 1, 20X0, were paid.
5. Bond principal paid during the year, $50,000, along with interest of $40,000.
6. The remaining accounts receivable outstanding on January 1, 20X0, were collected.
7. Accounts receivable on December 31, 20X0, amounted to $30,000, all applicable to aviation revenues, of which $1,400 is estimated to be uncollectible.
8. Accrued interest payable at year end, $3,000.
9. Depreciation charges:
Structures and Improvements . . . . . . . . . . . . . . . . . $14,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000

Required
a. Prepare a worksheet to reflect the beginning trial balance, the transactions and adjustments during 20X0, the revenues and expenses of the year (or closing entries), and the ending statement of net position data.
b. Compute the beginning and ending balances of each of the three net position components.
c. Prepare a statement of net position for the Airport Fund as of December 31, 20X0. d. Prepare a statement of revenues, expenses, and changes in fund net position for the Airport Fund for the fiscal year ended December 31,20X0.


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  • CreatedOctober 25, 2014
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