Assume that the City of Coyote has produced its financial statements for December 31, 2020, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. The city's general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these functions at times during the current year. The city also maintained an enterprise fund to account for its art museum. The government-wide financial statements provide the following figures: Education reports net expenses of $622,000. Parks reports net expenses of $105,000. Art museum reports net revenues of $54,750. General government revenues for the year were $881,250 with an overall increase in the city's net position of $209,000. The fund financial statements provide the following for the entire year: The general fund reports a $51,750 increase in its fund balance. The capital projects fund reports a $60,250 increase in its fund balance. The enterprise fund reports a $62,500 increase in its net position. The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent. The City of Coyote mails property tax bills for 2021 to its citizens during August 2020. Property owners could make payments early to receive a discount. The levy becomes legally enforceable on February 15, 2021. All money received by the city must be spent during 2021 or later. The total assessment is $348,000. Of that amount, the city collects 30 percent, less a 10 percent discount, in 2020. The city expects to receive all of the remaining money during 2021 with no discount. During 2020, the government increases cash as well as revenue for the amount received. No change was made in creating government-wide financial statements. a. What is the correct overall change in the city's net position as should be shown on the government-wide financial statements? b. What is the correct change for 2020 in the fund balance reported for the city's general fund? Increase/Decrease a. Correct change b. Correct change Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. The city's general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these functions at times during the current year. The city also maintained an enterprise fund to account for its art museum. The government-wide financial statements provide the following figures: Education reports net expenses of $676,000. Parks reports net expenses of $196,000. Art museum reports net revenues of $52,250. General government revenues for the year were $1,053,750 with an overall increase in the city's net position of $234,000. The fund financial statements provide the following for the entire year: The general fund reports a $39,500 increase in its fund balance. The capital projects fund reports a $48,000 increase in its fund balance. The enterprise fund reports a $74,250 increase in its net position. The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent. In 2020, the City of Coyote received a $540,000 cash grant from the state to reduce air pollution. Assume that although a special revenue fund could have been set up, the money remained in the general fund. Cash was received immediately but had to be returned if the city had not lowered air pollution by 25 percent by 2020. On December 31, 2020, Coyote spent $334,000 of this money for a large machine to help begin the process of reducing air pollution. The machine is expected to last for five years and was recorded as an expenditure in the general fund and as an asset on the government-wide financial statements where it was depreciated based on the straight-line method and the half-year convention. Because the money had been received, all $540,000 was recorded as a revenue on both the fund and the government-wide financial statements. a. What was the correct change for 2020 in the total fund balance reported by the general fund? b. What was the correct overall change in the net position reported on the government-wide financial statements? Increase/Decrease a. Correct change b. Correct change Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. The city's general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these functions at times during the current year. The city also maintained an enterprise fund to account for its art museum. The government-wide financial statements provide the following figures: Education reports net expenses of $622,000. Parks reports net expenses of $105,000. Art museum reports net revenues of $54,750. General government revenues for the year were $881,250 with an overall increase in the city's net position of $209,000. The fund financial statements provide the following for the entire year: The general fund reports a $51,750 increase in its fund balance. The capital projects fund reports a $60,250 increase in its fund balance. The enterprise fund reports a $62,500 increase in its net position. The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent. The City of Coyote mails property tax bills for 2021 to its citizens during August 2020. Property owners could make payments early to receive a discount. The levy becomes legally enforceable on February 15, 2021. All money received by the city must be spent during 2021 or later. The total assessment is $348,000. Of that amount, the city collects 30 percent, less a 10 percent discount, in 2020. The city expects to receive all of the remaining money during 2021 with no discount. During 2020, the government increases cash as well as revenue for the amount received. No change was made in creating government-wide financial statements. a. What is the correct overall change in the city's net position as should be shown on the government-wide financial statements? b. What is the correct change for 2020 in the fund balance reported for the city's general fund? Increase/Decrease a. Correct change b. Correct change Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. The city's general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these functions at times during the current year. The city also maintained an enterprise fund to account for its art museum. The government-wide financial statements provide the following figures: Education reports net expenses of $676,000. Parks reports net expenses of $196,000. Art museum reports net revenues of $52,250. General government revenues for the year were $1,053,750 with an overall increase in the city's net position of $234,000. The fund financial statements provide the following for the entire year: The general fund reports a $39,500 increase in its fund balance. The capital projects fund reports a $48,000 increase in its fund balance. The enterprise fund reports a $74,250 increase in its net position. The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent. In 2020, the City of Coyote received a $540,000 cash grant from the state to reduce air pollution. Assume that although a special revenue fund could have been set up, the money remained in the general fund. Cash was received immediately but had to be returned if the city had not lowered air pollution by 25 percent by 2020. On December 31, 2020, Coyote spent $334,000 of this money for a large machine to help begin the process of reducing air pollution. The machine is expected to last for five years and was recorded as an expenditure in the general fund and as an asset on the government-wide financial statements where it was depreciated based on the straight-line method and the half-year convention. Because the money had been received, all $540,000 was recorded as a revenue on both the fund and the government-wide financial statements. a. What was the correct change for 2020 in the total fund balance reported by the general fund? b. What was the correct overall change in the net position reported on the government-wide financial statements? Increase/Decrease a. Correct change b. Correct change
Expert Answer:
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
On December 30, 2020, the City of Coyote borrows $20,000 for the general fund on a 60-day note. In that fund, the city records Cash and Other Financing Sources. In the general information, this city...
-
You work for a gas turbine design company and have a client who has a fairly loose specification for a gas turbine engine. You are required to design an aviation gas turbine to power the aircraft...
-
Let V be a vector space and let x V. Show that: (a) 0 = 0 for each scalar . (b) If x = 0, then either = 0 or x = 0.
-
Flagstags flexible budget estimates are $74,000, $77,000, and $80,000 to manufacture 4,000, 4,500, and 5,000 gallons of beer, respectively, next quarter. What are the variable and fixed manufacturing...
-
You need to understand the approach described in question 3 in More Genetic TIPS before answering this question. A muscle-specific gene was cloned and then subjected to promoter bashing. As shown...
-
Hook Industries is considering the replacement of one of its old drill presses. Three alternative replacement presses are under consideration. The relevant cash flows associated with each are shown...
-
The given code starts by initializing some sets and functions f , g , and h . Block 1 is a function ( called hasInverse ) that takes as input another function ( called func ) , and two sets ( D and T...
-
Write a function encode1(string, key) that does a keyword cipher using the keyword key to create the alternate alphabet by placing the key at the beginning just before the other letters. For example,...
-
A bailment includes a transfer of title. (True/False)
-
Which type of property does a bailment involve?
-
What does an incontestability clause provide?
-
Most bailments are created by agreement. (True/False)
-
What is an estray statute?
-
Analyze the following message and note specific weaknesses with examples. Then revise if your instructor advises. Remember that you can download these documents at www.cengagebrain.com. To: Christina...
-
If there is an unrealized holding gain on available-for-sale investments, it is reported as?
-
For the pediatrician presented in Example 1, find the probability that a randomly selected three-year-old girl is between 35 and 40 inches tall, inclusive. That is, find P(35 X 40). By-Hand...
-
Find the value of z 0.10 . Approach We wish to find the z-value such that the area under the standard normal curve to the right of the z-value is 0.10.
-
The heights of a pediatricians three-year-old females are approximately normally distributed, with mean 38.72 inches and standard deviation 3.17 inches. Find the height of a three-year-old female at...
Study smarter with the SolutionInn App