The following balance sheet was adapted from the nancial statements of the Williamsburg Regional Sewage Treatment Authority (dates have been changed). Fund Types The transactions

The following balance sheet was adapted from the financial statements of the Williamsburg Regional Sewage Treatment Authority (dates have been changed).

Fund Types

The transactions of the authority are accounted for in the following governmental fund types:

• General fund—To account for all revenues and expenditures not required to be accounted for in other funds.

• Capital projects fund—To account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays. Such resources are derived principally from other municipal utility districts to which the Williams burg Regional Sewage Treatment Authority provides certain services.

1. Recast the balance sheets of the two funds into a single consolidated balance sheet (statement of net position). Show separately, however, the restricted and the unrestricted portions of the consolidated net position (not each individual asset and liability). Be sure to eliminate inter fund payables and receivables.

2. Which presentation, the unconsolidated or the consolidated, provides more complete information? Explain. Which presentation might be seen as misleading? Why? What, if any, advantages do you see in this presentation even though it might be less complete and moremisleading?

Williamsburg Regional Sewage Treatment Authoritv Balance Sheet October 3i, 2014 Capital General Projects S 751 $ 5,021 16,398 Time deposits Due on insurance claim Due from general fund Due from participants 9,499 9,000 66,475 4414 S76,725 $34,833 Total assets Liabilities and fund equity S17,725 9,000 S26,725 50,000 Total liabilities and fund equity $76,725 Accounts payable Due to capital projects fund Fund balance 34,833 $34,833