Following is the governmental activities pre-closing trial balance for the Town
ID: 2394992 • Letter: F
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 position and a statement of activities.
The restricted net position for debt service increased $97 for FY 2017. The net position accounts do not reflect FY 2017 depreciation of $1,240 that was allocated to the functions of government, or the town’s decision to designate $950 for street repair. (All 000s omitted.)
Using the trial balance provided by the town, prepare a government-wide statement of net position. (Enter your answers in thousands.)
TOWN OF FREAZ Pre-closing Trial Balance As of June 30, 2017 (000s omitted) Debits Credits Cash $ 3,644 Investments 7,304 Taxes Receivable—Delinquent 5,793 Allowance for Uncollectible Delinquent Taxes $ 54 Due from Other Funds 650 Due from Other Governments 6,353 Land 8,745 Buildings 25,730 Accumulated Depreciation—Buildings 8,026 Infrastructure 85,778 Accumulated Depreciation—Infrastructure 45,613 Machinery & Equipment 28,770 Accumulated Depreciation—Machinery & Equipment 13,810 Accounts Payable 7,504 Accrued Liabilities 4,790 Due to Other Funds 758 Current Portion of Long-term Debt 8,650 Bonds Payable 28,950 Net Position—Net Investment in Capital Assets 45,214 Net Position—Restricted for Debt Service 2,148 Net Position—Unrestricted 6,608 Program Revenues—General Government Charges for Services 4,416 Program Revenues—Public Safety— Charges for Services 1,016 Program Revenues—Culture & Recreation— Charges for Services 364 Program Revenues—General Government— Operating Grants & Contributions 312 Program Revenues—Public Works— Capital Grants & Contributions 1,690 General Revenues—Property Taxes 13,690 General Revenues—Interest & Penalties 756 General Revenues—Interest Income 370 Expenses—General Government 2,478 Expenses—Public Safety 11,592 Expenses—Public Works 5,316 Expenses—Culture & Recreation 1,832 Expenses—Interest on Long-term Debt 754 $ 194,739 $ 194,739Explanation / Answer
TOWN OF FREAZ STATEMENT OF NET POSITION AS OF 30-06-2017 ASSETS AMOUNT AMOUNT CURRENT ASSETS CASH 3644 INVESTMENTS 7304 TAX RECEIVABLES (NET) 5739 DUE FROM OTHER FUNDS 650 DUE FROM OTHER GOVERNMENT 6353 TOTAL CURRENT ASSETS 23690 CAPITAL ASSETS LAND 8745 INFRASTRUTURE 40165 MACHINERY AND EQUIPMENT 14960 BUILDINGS 17704 TOTAL CAPITAL ASSETS 81574 TOTAL ASSETS 105264 LIABILITIES CURRENT LIABILITIES ACCOUNT PAYABLE 7504 ACCRUED LIABILITIES 4790 DUE TO OTHER FUNDS 758 13052 13052 TOTAL CURRENT LIABILITIES CURRENT PORTION OF LONG TERM DEBT 8650 BONDS PAYABLE 28950 37600 37600 TOTAL LIABILITIES NET POSITION NET INVETSMENT IN CAPITAL ASSETS 45214 RESTRICTED - DEBT SERVICE 2148 UNRESTRICTED- 6608 DESIGNATED STREET REPAIR 642 UNDESIGNATED 54612 54612 TOTAL NET POSITION TOTAL LIABILITIES 105264 TOWN OF FREAZ STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2017 FUNCTIONS EXPENSES CHARGES FOR SERVICE OPERATING GRANTS AND CONTRIBUTIONS NET (EXPENSES) REVENUE AND CHARGES IN NET POSITION PRIMARY GOVERNMENT GENERAL GOVERNMENT CHARGES FOR SERVICE 4416 4416 PUBLIC SAFETY- CHARGES FOR SERVICE 1016 1016 CULTURE & RECREATION 364 364 GENERAL GOVERNMENTOPERATING GRANTS AND CONTRIBUTIONS 312 312 PUBLIC WORKS - CAPITAL GRANTS AND CONTRIBUTIONS 1690 1690 TOTAL GOVERNMENTAL ACTIVITIES 7798 GENERAL REVENUE PROPERTY TAXES 13690 13690 INTEREST AND PENALTY 756 756 INTEREST INCOME 370 370 14816 EXPENSES GENERAL GOVERNMENT 2478 -2478 PUBLIC SAFETY 11592 -11592 PUBLIC WORKS 5316 -5316 CULTURE & CREATION 1832 -1832 INTEREST ON LONG TERM DEBT 754 -754 -21972 TOTAL GENERAL RESERVES INCREASE IN UNRESTRICTED NET POSITION 642 NET POSITION JULY 1, 2016 0 NET POSITION JUNE 30, 2017 642