Presented on the following pages are partial financial statements for the City of Shenandoah, including:
Fiscal year 2012:
A. Total Governmental Funds: Balance Sheet
Statement of Revenues, Expenditures, and Changes in Fund Balances
B. Internal Service Fund: Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Net Assets Fiscal year 2011:
A. Total Governmental Funds: Balance Sheet
B. Government-wide€”Governmental Activities: Statement of Net Assets

CITY OF SHENANDOAH
Statement of Revenues, Expenditures and Changes
in Fund Balances€”Governmental Funds
For the Year Ended December 31, 2012
Total
Governmental
Funds__
Revenues
Property taxes $6,469,000
Sales taxes 3,115,000
Interest 32,000
Licenses and permits 800,000
Intergovernmental 1,763,000
Miscellaneous 270,000
Total revenues 12,449,000
Expenditures
Current
General government 1,692,300
Public safety 3,258,700
Landfill operations 2,337,400
Cultural and recreational 2,605,600
Capital outlay 4,914,150
Debt service
Principal 400,000
Interest 508,000
Total expenditures 15,716,150
Revenues over (under) expenditures (3,267,150)
Other financing sources (uses)
Proceeds of bonds 4,000,000
Premium on bonds 50,000
Transfers from other funds 137,450
Transfers (to) other funds (137,450)
4,050,000
Excess of revenues and other sources over
(under) expenditures and other uses 782,850
Fund balance€”beginning of year 1,230,990
Fund balance€”end of year $2,013,840

CITY OF SHENANDOAH
Statement of Net Assets
Proprietary Funds
December 31, 2012
December 31, 2012
Governmental
Activities:
Internal
Service Fund ___
Current assets
Cash and cash equivalents $37,000
Receivables:
Due from General Fund 10,200
Due from Enterprise Fund 11,000
Inventories 15,000
Total current assets 73,200
Noncurrent assets
Land 25,000
Buildings 44,000
Accumulated depreciation buildings (13,200)
Equipment 21,000
Accumulated depreciation equipment (12,600)
64,200
Total assets $137,400
Liabilities
Accounts payable $18,400
Total current liabilities 18,400
Noncurrent liabilities
Advance from Enterprise Fund 10,000
Total noncurrent liabilities 10,000
Total liabilities 28,400
Net assets
Invested in capital assets net of related debt $54,200
Unrestricted 54,800
Total net assets $109,000

CITY OF SHENANDOAH
Statement of Revenues, Expenses, and Changes
in Net Assets Proprietary Funds
For the Year Ended December 31, 2012
Governmental
Activities:
Internal
Service Fund__
Revenues
Charges for sales and services $371,200
Total revenues 371,200
Operating expenses
Cost of sales and services 358,600
Administration 10,300
Depreciation 4,300
Total expenditures 373,200
Operating (loss) (2,000)
Nonoperating income
Investment income 5,000
5,000
Change in net assets 3,000
Net assets€”beginning of year 106,000
Net assets€”end of year $109,000

CITY OF SHENANDOAH
Statement of Net Assets
Government-wide Statements
December 31, 2011
December 31, 2011
Governmental
Activities___
Current assets
Cash and cash equivalents $1,230,000
Investments 95,500
Receivables (net)
Taxes receivable 69,500
Due from business activities 23,000
Due from state government 156,000
Total current assets 1,574,000
Noncurrent assets
Land 7,230,000
Buildings 25,600,000
Accumulated depreciation buildings (13,000,000)
Infrastructure 24,500,000
Accumulated depreciation buildings (9,000,000)
Equipment 6,370,000
Accumulated depreciation equipment (3,100,000)
Total capital assets 38,600,000
Total assets $40,174,000
Liabilities
Accrued interest on bonds $180,000
Accounts payable 96,500
Total current liabilities 276,500
Noncurrent liabilities
General obligation bonds payable 6,000,000
Accrued costs for landfill closure and postclosure care 29,500
Total noncurrent liabilities 6,029,500
Total liabilities 6,306,000
Net assets
Invested in capital assets net of related debt 32,600,000
Unrestricted 1,268,000
Total net assets $33,868,000
Additional Information
1. $445,600 of the capital assets purchased in fiscal year 2012 was equipment. All remaining capital acquisitions were for a new building.
2. Depreciation of general fixed assets: buildings $1,100,000, infrastructure $975,000, and equipment $537,500.
3. The City had $6,000,000 of 6 percent general obligation bonds (issued at par) outstanding at December 31, 2011. In addition, the City issued $4,000,000 of 8 percent bonds on January 2, 2012 (sold at a premium). Interest payments on both bond issues are due on January 1 and July 1. Principal payments are made on January 1. Interest and principal payments for the current year include:

The January interest payments are accrued for purposes of the government-wide statements but not the fund-basis statements. The bond premium is to be amortized in the amount of $2,500 per year.
4. Property taxes expected to be collected more than 60 days after year-end are deferred in the fund basis statements.
5. At the end of 2012, the accumulated liability for landfill closure and post-closure care costs is estimated to be $37,000. Landfill operations are reported in the General Fund€”Public Works.
6. The internal service fund serves several departments of the General Fund, all within the category of €œGeneral Government.€ The internal service fund was created at the end of 2011 and had no capital assets or long-term liabilities at the end of 2011. Prepare all worksheet journal entries necessary for fiscal year 2012 to convert the governmental fund basis amounts to the economic resources measurement focus and accrual basis required for the governmental activities sections of the government-widestatements.

CITY OF SHENANDOAH Balance Sheet Governmental Funds December 31, 2012 and 2011 December 31, 2012 Total Governmental Funds December 31, 2011 Total Governmental Funds Assets Cash and cash equivalents $1,372,900 136,450 $1,029,675 102,338 97,522 28,768 Due from state government513,000 2,148,640 73,142 31,325 384,750 1,621,230 Taxes Interest Total assets Liabilities Accounts payable Due to other funds Deferred property taxes 74,600 10,200 50,000 134,800 55,950 10,400 27.000 Total liabilities Fund balances Reserved for 259,300 1,009,450 124,248 807,560 Debt service Unreserved, reported in: General Fund Other Funds Total fund balances 438,390 306,700 2,013,840 40 350,712 245,360 1527 880 Total liabilities and fund balances $2,148,6 6 percent General Obligation Bonds $180,000 168,000 $400,000 8 percent General Obligation Bonds Interest Payment- January 1 Interest Payment July 1 Principal Payment-January 1 $160,000