Question

The City of Gitche Gumee reports the following balances in its adjusted, pre-closing trial balance for governmental activities for the year ended December 31, 2020:

	Debit	Credit
Cash	310,000
Taxes receivable	298,000
Capital assets, net	800,000
Vouchers payable		85,000
Bonds payable		200,000
Net position – net investment in capital assets		600,000
Net position, restricted		300,000
Net position, unrestricted		200,000
Program revenues – general government, charges for services		2,000
Program revenues – public safety, operating grant		1,000
General revenues – property taxes		100,000
General revenues – special items		5,000
Expenses – general government	60,000
Expenses – public safety	15,000
Expenses – parks & recreation	9,000
Interest expense	1,000
Total	1,493,000	1,493,000

Required:

Prepare a statement of net position and the statement of activities (partial for the governmental activities only) of the City of Gitche Gumee based on the trial balance above.

Answer 1

Statement of Net Position
Particulars	Amount
Cash	3,10,000
Taxes receivable	2,98,000
Capital assets, net	8,00,000
Net investment in capital asset	6,00,000
Net position, restricted	3,00,000
Net position, unrestricted	2,00,000
Vouchers payable	-85,000
Bonds payable	-2,00,000
Net position as on date	22,23,000
Statement of Activities
Particulars	Amount
Program revenues – general government	2,000
Program revenues – public safety	1,000
General revenues – property taxes	1,00,000
General revenues – special items	5,000
Expenses – general government	60,000
Expenses – public safety	15,000
Expenses – parks & recreation	9,000
Interest expense	1,000
Net balance for activities	23,000

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