Problem 1: The following information is available about items that differ between the governmental funds and the government wide statements. Assume that there are no internal service funds. The schedule of capital assets prepared for the year ended December 31, 2015, includes the following items:
|
Government Activities
|
Beginning Balance
|
Additions
|
Retirements
|
Ending Balance
|
|
Total Capital Assets (at gross)
|
$700,000
|
$50,000
|
$(25,000)
|
$725,000
|
|
Less: Accumulated Depreciation
|
(170,000)
|
(30,000)
|
17,500
|
(182,500)
|
|
Net Capital Assets
|
$530,000
|
$20,000
|
$(7,500)
|
$542,500
|
The bond was issued at the beginning of the year, and the following amortization schedule is available.
|
Date
|
Interest Expense
|
Cash Paid
|
Premium Amortization
|
Bond Balance
|
|
1/1/2015
|
|
|
|
$104,213
|
|
12/31/2015
|
6,253
|
7,000
|
747
|
$103,466
|
The net change in fund balances-total governmental funds was $1,100,000.
Required: Prepare the reconciliation of the statement of revenues, expenditures, and changes in fund balances to the statement of activities on a government-wide basis for the year ended December 31, 2015.
Problem 2: The following information was available about items that differed between the governmental funds and the government-wide statements. Assume that there are no internal service funds. The schedule of capital assets prepared for the year ended December 31, 2015, included the following items:
|
Government Activities
|
Beginning Balance
|
Additions
|
Retirements
|
Ending Balance
|
|
Total Capital Assets (at gross)
|
$800,000
|
$60,000
|
$(30,000)
|
$830,000
|
|
Less: Accumulated Depreciation
|
(200,000)
|
(40,000)
|
22,500
|
(217,500)
|
|
Net Capital Assets
|
$600,000
|
$20,000
|
$(7,500)
|
$612,500
|
The bond was issued at the beginning of the year and the following amortization schedule is available:
|
Date
|
Interest Expense
|
Cash Paid
|
Premium Amortization
|
Bond Balance
|
|
1/1/2015
|
|
|
|
$104,213
|
|
12/31/2015
|
$6,253
|
$7,000
|
$747
|
$103,466
|
The total fund balances for governmental activities was $3,125,000 at the end of the year.
Required: Prepare the reconciliation of the governmental fund balances to the net position reported for governmental activities on the Statement of Net Position as of December 31, 2015.