In: Accounting
Could someone please answer this question as son as possible. Thanks
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 0 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
At the core of a governmental reporting entity’s comprehensive annual financial report are the general purpose financial statements. These statements are made up of government-wide financial statements and fund-based financial statements. Government-wide statements present financial information for both governmental activities and business-type activities. These statements measure economic resources and utilize accrual accounting.
The fund-based statements separately present the governmental funds, the proprietary funds, and the fiduciary funds. At the fund level, the measurement focus and the method of accounting depend on the fund in question. For governmental funds, the current financial resources measurement focus is used with modified accrual accounting. However, both proprietary funds and fiduciary funds use accrual accounting to measure economic resources.
However, now that a deeper understanding of government accounting has been established, these same statements as well as several other fund-based statements can be examined in more detail. Having an appreciation for the end result of the accounting process helps to show how the diverse elements of government accounting fit together into a complete reporting package.