Question: The postclosing trial balance for the City
The postclosing trial balance for the City of Fort Collins governmental funds at June 30, 2016, shows the following ledger account balances:
ADDITIONAL INFORMATION:
1. During the year, Fort Collins purchased $9,000 in equipment, which was not depreciated.
2. Fort Collins also has other fixed assets with a historical cost of $95,000 and accumulated depreciation of $65,000.
3. Fort Collins has capital project fund construction expenditures totaling $20,000.
4. During the year, the city issued a bond at $500,000 par value.
5. During the year, the city entered into a lease agreement. The entire amount should be recognized as general long-term debt.
6. The city’s revenue collected in advance would be treated as revenue under accrual accounting.
7. The transfers in and out were made between governmental funds.
8. The city does not report internal service funds.
REQUIRED:
Prepare a conversion worksheet to determine the change in net position and the net position balance for the city’s governmental funds.
Transcribed Image Text:
DR CR Cash and cash equivalents Investments $541,100 520,000 520,000 187,500 Taxes receivable Accounts receivable 364,970 290,000 Due from other governments Supplies inventory Vouchers payable Contracts payable $379,500 47,500 Revenue collected in advance 55,000 Fund balance/net position, beginning 912,720 Revenues 3,507,450 Expenditures OFS-Bond proceeds OFS Capital lease OFS-Transfers in OFU-Transfers out 3,043,600 500,000 65,000 75,250 75,250 $5,542,420 $5,542,420
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