The City of Laurel reported a net change in the net position of $30,000 for all
ID: 2556923 • Letter: T
Question
The City of Laurel reported a net change in the net position of $30,000 for all its governmental type funds. You are also given the following information for the current fiscal year:
The City purchased capital assets for its governmental activities totaling $300,000 and retired bond principal totaling $150,000 related to the construction of a new fire department building.
The City earned $20,000 in revenues that were not considered available for this year’s budget as it will be received 75 days after the date of the financial statements.
The city issued debt with a face amount of $500,000 at 102 to finance the construction of a new courthouse.
The City budgeted and paid interest totaling $25,000 related to its bond financing for governmental fund debt.There was an additional $5,000 of accrued interest related to this debt.
Depreciation expense for the year for the governmental type funds totaled $50,000.
The City transferred $25,000, during the year, from its General Fund to an Utility Enterprise Fund to reflect utility charges.
The City also reported a net change in the total fund balance of $125,000 for its governmental type funds.
Prepare a required reconciliation statement to support the differences in the changes in net position and fund balance.
Explanation / Answer
Reconciliation Statement between change in Net position and total fund balance : Net position 30000 Add: issued debt at 102 - FV 5 Lacs 510000 Depreciation 50000 Interest Accrued 5000 565000 Less : Purchased Capital Assets 300000 Retired Bond Principal 150000 Revenue booked, to be received after 75 days 20000 470000 Net change in Total Fund Balance 125000