In: Accounting
Reporting reconciliation between fund and government-wide financial statements
Sai-Tu Village reported outstanding long-term bonds payable of $6,000,000 in the governmental activities column of its government-wide statement of net position for the year ended December 31, 2019. During 2020, Sai-Tu Village sold $500,000 of new general obligation bonds and repaid $300,000 of bonds outstanding at the beginning of the year.
Based on this information, determine the reconciliation amounts reported in the two funds’ financial statements to the two government-wide financial statements.
Use a negative sign with your answer, if appropriate.
Reconciliation of Governmental fund balance sheet to Government-wide statement of net position | |
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Amounts reported in the statement of net position are different because: | |
Bonds payable are not due and payable in the current period
and, therefore, are not reported in the funds |
$Answer |
Reconciliation of
Governmental funds statement of revenues, expenditures, and change
in fund balances to Government-wide statement of activities |
|
---|---|
Amounts reported in the funds statement are different because: | |
Bond proceeds provide current financial resources and debt
repayments are expenditures in governmental funds. Issuing debt increases liabilities (and repaying debt decreases them) in the statement of net position. The amount by which bond proceeds exceeded repayments in the current period is |
$Answer |
Reconciliation of Governmental fund balance sheet to Government-wide statement of net position
Amounts reported in the statement of net position are different because:
Bonds payable are not due and payable in the current period
and,
therefore, are not reported in the funds
$6,000,000
(Since $6,000,000 Bonds appear in the governmental activities column of its government-wide statement of net position for the year ended December 31, 2019)
Reconciliation of Governmental funds statement of
revenues, expenditures, and change in fund
balances to Government-wide statement of activities
Amounts reported in the funds statement are different because:
Bond proceeds provide current financial resources and debt
repayments are
expenditures in governmental funds. Issuing debt increases
liabilities
(and repaying debt decreases them) in the statement of net
position.
The amount by which bond proceeds exceeded repayments in the
current period is $200,000
Bonds Issued - $500,000
Bonds Repaid - $300,000
Net Increase in Liability - $200,000