|Posted: 17 May 2010 at 10:11 | IP Logged
The City of Richardson reported a change in fund balances of $2,002,000 in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the year ended December 31, 2004. Additional information:
1. Capital outlay expenditures amounted to $10,000,000 in the modified accrual statement. General government fixed asses amounted to $160,000,000 excluding land and had an average life of 20 years.
2. The modified accrual statement reported proceeds from the sale of land in the amount of $1,000,000. The land had a basis of $800,000.
3. Property taxes had been levied in the amount of $20,000,000. It was estimated that 3% would be uncollected, that $1,000,000 would be collected within 60 days of year-end, and that $400,000 would be collected more than 60 days from year-end. The City had recognized the maximum permitted under modified accrual accounting.
4. $370,000 of property taxes had been deferred at the end of the previous year and was recognized under modified accrual as revenue in the current year.
5. The modified accrual statement reflected debt service expenditures in the amount of $1,000,000 for interest and $1,500,000 for principal. No adjustment was necessary for interest accruals at year-end.
6. Compensated absences charges, on the full accrual basis, amounted to $100,000 more than under the modified accrual basis.
The change in net assets in the governmental column in the government-wide Statement of Activities for the year ended December 31, 2004 are:
The correct answer is D. Geez…I have really trouble figuring out the answer- especially 3, and 4. I would really appreciate if someone can show me 3 and 4.
1. we have to add back 10,000,000 and subtract out 8,000,000
2. we have to subtract 1,000,000 and add back 200,000
5. We have to add back 1,500,000
6. We have to subtract 100,000
That is all I know at this point. Thanks !