Hawkins Township has two component units that it is required to include in its reporting entity. The first, a housing authority, maintains two funds: a general fund and a special revenue fund. The second, a transportation authority, has but one fund: an enterprise fund. The township itself has only a general fund.
The fund balance sheets, in highly condensed form, of all three entities are shown below (in millions). Also presented, as appropriate, are capital assets and long-term obligations that are not recognized on the fund statements, since the statements are on a modified accrual basis.

1. Assume that both component units qualify for discrete presentation. On its government-wide statements, the township elects to combine the two units into a single column.
a. Prepare a government-wide statement of net assets (on a full accrual basis) that presents both the town-ship and its component units.
b. Comment on the significance of the column in which the two component units are presented
2. Suppose instead that the town is required to blend the two component units.
a. Prepare a government-wide statement of net assets. Be sure to show the transportation authority as a business-type activity.
b. If the township were to prepare fund statements, how would it report the housing authority€™s special revenue fund? How would it report its generalfund?

Hawkins Township Capital Assets and General Long-ternm Fund Obligations Cash and investments Capital assets $140 Net capital assets Total assets Long-term obligations Fund halance S 30 Total long-term ohligations and fand halances Transportation Authority Cash and investuments Capital assets Net capital assets Total assets Long-term obligations Fund balance S450 Total long-term obligations and fund balance Housing Anthority Capital Asscts Special and General Revenue Long-term Fund Fund Obligations Cash and investments S10 S5 Capital assets Less: accumulated $45 depreciation Net capital assets Total assets Long-term obligations Fund balance S 5 Total long-term obligations and fund balance