Question - Following is the governmental activities pre-closing trial balance for the Town of Freaz. Freaz is a relatively small town and, as a result, it has only governmental funds (i.e., it uses no proprietary funds). There are no component units. To complete the financial statements for its annual report, the town must prepare a government-wide statement of net assets and a statement of activities.
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TOWN OF FREAZ Pre-Closing Trial Balance As of June 30, 2011 (000s omitted)
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Debits
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Credits
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Cash
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$3,639
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Investments
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7,299.00
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Taxes Receivable - Delinquent
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5,788.00
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Estimated Uncollectible Delinquent Taxes
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$49
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Due from Other funds
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645.00
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Due from other governments
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6,343.00
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land
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8,720.00
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buildings
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25,680.00
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Accumulated depreciation - buildings
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8,021
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Infrastructure
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85,768.00
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Accumulated depreciation - infrastructure
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45,603
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machinery & Equipment
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28,720.00
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Accumulated depreciation - machinery & equipment
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13,785
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accounts payable
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7,764
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accrued liabilities
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4,765
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due to other funds
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748
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current portion of long-term debt
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8,600
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bonds payable
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28,700
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net assets - invested in capital assets,
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net of related debt
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44,179
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net assets - restricted for debt service
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2,123
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net assets - unrestricted
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7,678
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program revenues - general government-
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4,411
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charges for services
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program revenues - public safety
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charges for services
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996
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program revenues - parks & recreation
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charges for services
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359
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program revenues - general government-
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operating grants & contributions
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307
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program revenues - public works
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capital grants & contributions
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1,680
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Genaral revenues- property taxes
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13,665
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general revenues - interest & penalties
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746
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general revenues - interest income
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345
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expenses - general government
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2,468.00
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expenses - public safety
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11,577.00
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expenses - public works
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5,311.00
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expenses - parks and recreation
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1,817.00
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expenses - interest on long-term debt
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749.00
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$194,524
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$194,524
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Required: Using the trial balance provided by the town, prepare a government-wide statement of activities and a statement of net assets. Restricted net asets for debt service increase $ 87 (000s omitted) for the period.