Unformatted text preview: However, the issuance of debt increases long-term liabilities in the statement of net assets. Bond proceeds of $460,000 are not reduced because there is no repayment of principal during the year. (460,000) Revenues and expenses in the statement of activities are recorded on the accrual basis. Interest in the governmental funds is recorded on the modified accrual basis. Accrual interest revenue exceeded modified accrual interest revenue recognized in the governmental funds by $1,000. Accrual interest expense exceeded modified accrual interest expense by $6,000 ($46,000 - $40,000). The net interest adjustment is $5,000. (5,000) Internal service funds are used by management to charge the costs of certain services. The net revenue (expense) of the internal service funds is reported with governmental activities. 9,000 Change in net assets of governmental activities $153,400...
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- Fall '11
- Revenue, Generally Accepted Accounting Principles, Governmental Funds