Chap018-baker 45

Chap018-baker 45 - However, the issuance of debt increases...

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Chapter 18 - Governmental Entities: Special Funds and Government-Wide Financial Statements 18-45 P18-23 (continued) b. Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities: City of Sycamore Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Net change in fund balances – governmental funds $509,400 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is capitalized and depreciated over their estimated useful lives. This is the amount by which capital outlays in the governmental funds ($287,000) exceeded depreciation of the governmental assets ($187,000) 100,000 Bond proceeds provide current financial resources for the governmental funds.
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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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