Question

Your company recently assigned you to a the City of Chesterton and provided you with the following information for the year ended June 30, 2008:

Expenses:

General government	$11,000,000
Public safety	24,000,000
Public works	12,000,000
Health and sanitation	6,000,000
Culture and recreation	4,000,000
Interest on long-term debt, governmental type	600,000
Water and sewer system	12,000,000
Parking system	500,000

Revenues:

Charges for services, general government	$1,000,000
Charges for services, public safety	200,000
Operating grant, public safety	700,000
Operating grant, health and sanitation	1,000,000
Charges for services, culture and recreation	2,000,000
Charges for services, water and sewer	13,000,000
Charges for services, parking system	400,000
Property taxes	29,000,000
Sales taxes	21,000,000
Investment earnings, business-type	300,000

Special itme-gain on sale of unused land, governmental type	1,000,000
Transfer to governmental activities from business-type activities	700,000
Net position, July 1, 2006, governmental activities	13,000,000
Net position, July 1, 2006, business-type activities	22,000,000

Required: From the information given above, prepare a Statement of Activities for the City of Chesterton for the year ended June 30, 2008. Chesterton has no component units.

Answer 1

CITY OF CHESTERTON
Statement of Activities
For the Year Ended June 30, 2008
Functions / Programs	Program Revenues			Net Revenue & Change in Net Assets
	Expenses	Charges for Services	Operating Grants	Governmental Activities	Business Type Activities	Total
Government Activities
General Government	11,000,000.00	1,000,000.00		(10,000,000.00)		(10,000,000.00)
Public Safey	24,000,000.00	200,000.00	700,000.00	(23,100,000.00)		(23,100,000.00)
Public Works	12,000,000.00			(12,000,000.00)		(12,000,000.00)
Health & Sanitation	6,000,000.00	-	1,000,000.00	(5,000,000.00)		(5,000,000.00)
Culture & Recreation	4,000,000.00	2,000,000.00		(2,000,000.00)		(2,000,000.00)
Interest on Long Term Debt	600,000.00			(600,000.00)		(600,000.00)
Total Government Activities	57,600,000.00	3,200,000.00	1,700,000.00	(52,700,000.00)		(52,700,000.00)
Business Activities
Water & Sewer System	12,000,000.00	13,000,000.00			1,000,000.00
Packing System	500,000.00	400,000.00			(100,000.00)
Total Business Activities	12,500,000.00	13,400,000.00	-	-	900,000.00	-
Total Primary Government	70,100,000.00	16,600,000.00	1,700,000.00	(52,700,000.00)	900,000.00	(52,700,000.00)
General Revenues
Property Taxes				29,000,000.00		29,000,000.00
Sales Taxes				21,000,000.00		21,000,000.00
Investment Earnings					300,000.00	-
Special Item - Gain on Sales of Unused Land				1,000,000.00		1,000,000.00
Transfer from Government to Business				(700,000.00)	700,000.00	(700,000.00)
Total General Revenues				50,300,000.00	1,000,000.00	51,300,000.00
Change in Net Assets				(2,400,000.00)	1,900,000.00	(500,000.00)
Net Assets, Beginning				13,000,000.00	22,000,000.00	35,000,000.00
Net Assets, Ending				10,600,000.00	23,900,000.00	34,500,000.00