What was the correct overall change in the net position

Assignment Help Finance Basics

Reference no: EM131936619

Question: Assume that the City of Coyote has already produced its financial statements for December 31, 2015, and the year then ended. The city's General Fund was only for education and parks. Its Capital Projects Funds worked with each of these functions at times during the current year. The city also had established an Enterprise Fund to account for its art museum.

The government-wide financial statements indicated the following figures:

• Education reported net expenses of $766,000.

• Parks reported net expenses of $163,000.

• Art museum reported net revenues of $58,250.

• General government revenues for the year were $1,069,750 with an overall increase in the city's net position of $199,000.

The fund financial statements indicated the following for the entire year:

• The General Fund reported a $35,750 increase in its fund balance.

• The Capital Projects Fund reported a $45,750 increase in its fund balance.

• The Enterprise Fund reported a $72,750 increase in its net position.

The CPA firm of Abernethy and Chapman has been asked to review several transactions that occurred during 2015 and indicate how to correct any erroneous reporting and the impact of each error. View each of the following situations as independent.

An art display set up for the City of Coyote was recorded within the General Fund and generated revenues of $10,350 but had expenditures of $48,350 ($17,150 in expenses and $31,200 to buy land for the display). The CPA firm has determined that this program should have been recorded as an Enterprise Fund activity because it was offered in association with the art museum.

a. Based on the information provided above, what was the correct change in the fund balance for the General Fund for 2015?

b. What was the correct overall change in the city's net position on the government-wide financial statements?

c. What was the correct change in the net position of the Enterprise Fund on the fund financial statements?

Reference no: EM131936619

Questions Cloud

At what marginal tax rate would you be indifferent : Which one should you choose and why? At what marginal tax rate would you be indifferent to the choice between California and ExxonMobil bonds?

Calculate how much will you have in each in 19 years : If you invest $13,500 today, how much will you have in each of the following instances?

Machine screws annually for automobile production : Consider a project to supply Detroit with 20,000 tons of machine screws annually for automobile production.

Set up a network consisting of pcs routers and servers : You are required to set up a network consisting of PCs, routers and servers. You need to configure routing between routers (minimum two routers required).

What was the correct overall change in the net position : What was the correct change in the net position of the Enterprise Fund on the fund financial statements?

Satisfy required rate of return : How much will the stock price have to appreciate for you to satisfy your required rate of return of 16 ?percent?

What was the intrinsic value per share of the options : What was the intrinsic value per share of the options exercised in 2008? (Hint: Assume that Intel grants options at-the-money.)

How much will susan stock be worth : How much will Susan's stock be worth if she sells it five years from today? Hint: your Rate of Return formula can be rewritten to solve for Ending Price

Lieu of the original note and guaranty agreement : A Should the photocopies be admitted into evidence in lieu of the original note and guaranty agreement?

User Account

All Pages