The City of Coyote mailed property tax bills for 2014 to its citizens during August 2013. Payments could be made early to receive a discount. The levy becomes legally enforceable on February 15, 2014. All money received must be spent during 2014 or later. The total assessment is $300,000; 40 percent of that amount, less a 10 percent discount, is collected in 2013.
The city expects to receive all of the remaining money during 2014 with no discount. During 2013, the government increased cash as well as a revenue for the amount received. No change was made in creating the government-wide financial statements.
a. What was the correct overall change in the city's net assets as shown on the government wide financial statements?
b. What was the correct change for 2013 in the fund balance reported in the General Fund?