However in the statement of activities the cost of

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Unformatted text preview: expense. This is the amount by which capital outlays $(1,250,000) exceeded depreciation $(595,000). 655,000 Transactions involving capital assets resulted in a loss. The loss did not require the use of current financial resources, and therefore was not reported in the governmental funds. (13,000) Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. This is the amount of the proceeds. (3,030,000) A decrease in accrued liabilities indicates that expenditures recorded in the governmental funds exceed expenses for the current period. 24,000 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 298,000 Change in net assets of governmental activities 9-13 $ (1,934,300) Chapter 09 - Financial Reporting of State and Local Governments Ch. 9, Solutions (Cont'd) 9-8. Some of the modifications or corrections that should be made include: • The word Expenses should be changed to Ex...
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This note was uploaded on 05/20/2010 for the course ACCOUNTING 580 taught by Professor Waymire during the Spring '10 term at Northern Virginia.

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