Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. The city’s general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these functions at times during the current year. The city also maintained an enterprise fund to account for its art museum.
The government-wide financial statements provide the following figures:
The fund financial statements provide the following for the entire year:
The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent.
During 2020, the City of Coyote contracts to build a bus stop for schoolchildren costing $11,500 as a special assessments project. The city collects $11,500 from directly affected citizens. The government has no obligation in connection with this project. The city records both a $11,500 revenue and a $11,500 expenditure in the capital projects fund. In preparing government-wide financial statements, the city records an asset and a general revenue for $11,500.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here