Question

In: Accounting

Reporting reconciliation between fund and government-wide financial statements Sai-Tu Village reported outstanding long-term bonds payable of...

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
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

Solutions

Expert Solution

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


Related Solutions

1-Discuss the differences between the fund financial statements and the government-wide financial statements. 2-Give an example...
1-Discuss the differences between the fund financial statements and the government-wide financial statements. 2-Give an example of a government’s Management’s Discussion and Analysis. Explain the basics that are covered in their Management’s Discussion and Analysis. 3-Barry City has a governmental fund that provides loans to commercial businesses operating in Jerome County (Barry City is within Jerome County). This year, Barry City made loans totaling $1,000,000. How should Barry City classify the disbursements of loans on the statement of cash flows?...
What are the requirements for reporting pension and OPEB plans in the government-wide and fund financial...
What are the requirements for reporting pension and OPEB plans in the government-wide and fund financial statements? Discuss the importance and reasoning behind the requirements.
The government-wide financial statements of the reporting entity of a state or local governmental unit include...
The government-wide financial statements of the reporting entity of a state or local governmental unit include information about which of the following? The primary government Discretely presented component units Blended component units a) I, II, and III. b) I only. c) I and III only. d) I and II only. A government entity is required to include a statement of cash flows in which of the following financial statements? a) Governmental fund financial statements. b) Government-wide financial statements. c) Proprietary...
Transaction Reporting in Fund and Government-Wide Statements Consider the following transactions of Daley County: 1. General...
Transaction Reporting in Fund and Government-Wide Statements Consider the following transactions of Daley County: 1. General property taxes of $4,500,000 are levied. 2. Grants of $850,000 are received from the state to finance public safety programs. 3. Investment income of $55,000 is earned and received in cash on investments of a debt service fund. 4. Investment income of $85,000 is earned and received in cash on investments made using money received from a generous citizen. The money is held in...
26.Explain the different purposes of the fund-based and government-wide financial statements of a state or local...
26.Explain the different purposes of the fund-based and government-wide financial statements of a state or local government and the primary differences between the fund-based and government-wide operating statements. 27. Describe the format prescribed by the Governmental Accounting Standards Board (GASB) for the government-wide statement of activities and how that format benefits financial statement users. 28.Distinguish among appropriations, allotments, expenditures, encumbrances, and expenses. 29.Explain why some transactions for governmental activities at the government-wide level are reported differently than transactions for the...
Why are governments required to produce both fund and government-wide financial statements? What is the major...
Why are governments required to produce both fund and government-wide financial statements? What is the major difference between the two sets of statements?
Discuss what type of asset are reported and how they are reported for government wide financial...
Discuss what type of asset are reported and how they are reported for government wide financial statement and fund statement.
Option #1: Transactions for fund statements and government-wide statements At the beginning of the year, Robinson...
Option #1: Transactions for fund statements and government-wide statements At the beginning of the year, Robinson County acquired a new storage building under a capital lease agreement. An initial payment of $700,000 is made to start the lease with four subsequent payments for the same amount at the end of each year starting in late 20X7. The total lease payment amount for the duration of the lease is $3,500,000. The present value of the lease at the inception is $3,485,000,...
Given the following information, what is the historical real return for long-term government bonds? Long-term government  ...
Given the following information, what is the historical real return for long-term government bonds? Long-term government   6.40% Long-term corporate 6.50% Inflation rate 3.15% (A) 9.75% (B) 3.25% (C) 3.15% (D) -3.36% Consider the following information about two stocks and indicate which stock has the most systematic risk. State Probability Stock A Stock B Recession   0.15 0.11 (0.35) Norman 0.55 0.18 0.11 Boom 0.30 0.08 0.31 Market risk premium      8.50% Risk-free rate    3.00% (A) Both risk are the same...
Given the following information, what is the historical real return for long-term government bonds? Long-term government  ...
Given the following information, what is the historical real return for long-term government bonds? Long-term government   6.40% Long-term corporate 6.50% Inflation rate 3.15% (A) 9.75% (B) 3.25% (C) 3.15% (D) -3.36% Consider the following information about two stocks and indicate which stock has the most systematic risk. State Probability Stock A Stock B Recession   0.15 0.11 (0.35) Norman 0.55 0.18 0.11 Boom 0.30 0.08 0.31 Market risk premium      8.50% Risk-free rate    3.00% (A) Both risk are the same...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT