Question

The following information has been provided for the City of Elizabeth for its fiscal year ended June 30, 2017. The information provided relates to financial information reported on the city’s statement of net position and its total governmental funds balance.

Revenues accrued but unavailable to pay the current period expenditures$364,600

Capital assets 641,600   Accumulated depreciation on capital assets 356,800   

Accrued interest on bonds and long-term notes payable 2,900  

Bonds and long-term notes payable 177,600   

Unamortized premium on bonds payable 2,400  

Compensated absences 16,700   

Total governmental fund balances 162,800   

Total net position of governmental activities 612,600

Required

Prepare reconciliation of the governmental fund balances to the net position of governmental activities

CITY OF ELIZABETH
Reconciliation of the Balance Sheet—Governmental Funds to the Statement of Net Position
June 30, 2017
Total fund balances—governmental funds
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported by funds.
Other assets used in governmental activities are not financial resources and therefore are not reported by funds.
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.
Accrued interest payable is not due in the current period and therefore is not included in the funds.
Net position of governmental activities

  

Answer 1