In: Finance
The statement of change in net debt is unique to public sector financial reporting. Assume that you are a financial accountant with the Municipality of Walton. Prepare the 20X5/X6 statement of change in net debt using the information below. (Note: prepare only the current-year column, not the comparative numbers.)
MUNICIPALITY OF WALTON |
||
20X6 |
20X5 |
|
Financial assets |
||
Cash |
95,263 |
87,412 |
Accounts receivable |
24,812 |
18,776 |
Taxes receivable |
62,477 |
78,943 |
Investments |
59,110 |
46,545 |
241,662 |
231,676 |
|
Liabilities |
||
Accounts payable |
90,993 |
97,863 |
Deferred revenue |
11,735 |
9,745 |
Employee future benefits |
127,571 |
131,552 |
Long-term debt |
364,747 |
381,001 |
595,046 |
620,161 |
|
Net debt |
(353,384) |
(388,485) |
Non-financial assets |
||
Tangible capital assets |
356,442 |
364,710 |
Inventory |
21,233 |
25,641 |
Prepaid expenses |
9,542 |
10,301 |
387,217 |
400,652 |
|
Accumulated surplus (deficit) |
$ 33,833 |
$ 12,167 |
MUNICIPALITY OF WALTON |
||
20X6 |
20X5 |
|
Revenue |
||
Taxation |
512,098 |
487,752 |
User fees and charges |
104,752 |
96,321 |
Government grants |
37,059 |
45,278 |
Investment income |
2,474 |
6,120 |
Penalties and fines |
24,714 |
20,144 |
681,097 |
655,615 |
|
Expenses |
||
Protective services |
189,216 |
182,111 |
Transportation services |
208,511 |
200,463 |
Environmental services |
61,203 |
54,125 |
Recreation and cultural services |
76,610 |
65,875 |
Educational services |
90,220 |
93,633 |
Urban development services |
33,671 |
26,987 |
659,431 |
623,194 |
|
Annual surplus (deficit) |
21,666 |
32,421 |
Additional information:
Solution:
Statement of change in net debt as at March 31, 2016 |
|||
Particulars | March 31, 2016 | ||
Annual surplus (deficit) | $ 21,666 | ||
Tangible Capital Assets | |||
Acquisition of asset | $ -6,450 | ||
Amortization | $ 14,718 | ||
$ 8,268 | |||
Consumption of Inventory | $ 4,408.0 | ||
$ (25,641 - 21,233) | |||
Prepaid expenses used | $ 759 | ||
$ (10,301 - 9,542) | |||
$ 5,167.0 | |||
Change in Net Debt | $ 35,101.0 | ||
Net Debt at the beginning of the year | $ -3,88,485.00 | ||
Net Debt at the end of the year | $ -3,53,384.00 | ||
$ (-3,88,485 + 35,101) |