Essentials of Accounting for

Governmental and Not for Profit

Organizations 13th Edition Copley
Solutions Manual
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Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

CHAPTER 8:
Government-Wide Statements, Capital Assets, Long-Term Debt

8-1. THE SOLUTION TO THIS AND THE FIRST EXERCISE OF CHAPTERS 1 THROUGH 8 WILL DIFFER
FROM STUDENT TO STUDENT ASSUMING EACH HAS A DIFFERENT CAFR.

8-2. THE MOST COMMON NONEXCHANGE TRANSACTION THAT RESULTS IN A DIFFERENCE

BETWEEN ACCRUAL AND MODIFIED ACCRUAL ACCOUNTING IS PROPERTY TAX REVENUE.
PROPERTY TAXES EXPECTED TO BE COLLECTED MORE THAN 60 DAYS AFTER YEAR END ARE
REPORTED AS DEFERRED INFLOWS UNDER MODIFIED ACCRUAL ACCOUNTING BUT WOULD
NOT BE DEFERRED IN THE GOVERNMENT-WIDE STATEMENTS USING ACCRUAL ACCOUNTING.
ANOTHER COMMON REVENUE THAT RESULTS IN DIFFERENCES IS INCOME TAXES. IT IS
COMMON THAT INCOME TAXES MAY NOT BE COLLECTED IN TIME TO MEET THE “AVAILABLE”
CRITERIA USED FOR MODIFIED ACCRUAL RECOGNITION.

IN CONTRAST, MANDATED AND VOLUNTARY NONEXCHANGE TRANSACTIONS (GRANTS)

TYPICALLY RESULT IN REVENUE RECOGNITION IN THE SAME PERIODS UNDER THE ACCRUAL
AND MODIFIED ACCRUAL BASES.

8-3. INTERNAL SERVICE FUNDS MOST COMMONLY PROVIDE GOODS AND SERVICES TO
GOVERNMENT DEPARTMENTS CLASSIFIED WITHIN GOVERNMENTAL ACTIVITIES. THESE
DEPARTMENTS ARE TYPICALLY REPORTED IN THE GENERAL FUND. FOR THIS REASON, THE
ASSETS, LIABILITIES AND NET POSITION USED TO ACCOMPLISH GOVERNMENTAL ACTIVITIES,
INCLUDING THOSE CLASSIFIED AS INTERNAL SERVICE FUND ACTIVITIES, ARE REPORTED AS
GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION. HOWEVER, IF AN
INTERNAL SERVICE FUND PREDOMINANTLY PROVIDED GOODS AND SERVICES TO ENTERPRISE
FUNDS, IT SHOULD BE REPORTED IN THE BUSINESS ACTIVITIES COLUMN OF THE STATEMENT
OF NET POSITION.

8-4.

A. INFRASTRUCTURE REPRESENTS LONG-LIVED CAPITAL ASSETS THAT NORMALLY ARE

STATIONARY IN NATURE AND NORMALLY CAN BE PRESERVED FOR A SIGNIFICANTLY
GREATER NUMBER OF YEARS THAN MOST CAPITAL ASSETS. EXAMPLES OF INFRASTRUCTURE
ASSETS INCLUDE ROADS, BRIDGES, TUNNELS, DRAINAGE SYSTEMS, WATER AND SEWER
SYSTEMS, DAMS, AND LIGHTING SYSTEMS.

B. A GOVERNMENT MAY RECORD INFRASTRUCTURE AND DEPRECIATE IT AS ANY OTHER FIXED

ASSETS OR MAY USE THE “MODIFIED” METHOD. THE DIFFERENCES ARE THAT UNDER THE
“MODIFIED METHOD” GOVERNMENTS EXPENSE AMOUNTS THAT ARE EXPENDED TO EXTEND
THE LIFE OF THE INFRASTRUCTURE (BUT NOT IMPROVE IT) AND THEN ARE NOT REQUIRED TO
RECORD DEPRECIATION ON THAT INFRASTRUCTURE.

8-1
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-4 (CONTINUED)
C. TO USE THE MODIFIED APPROACH, TWO CONDITIONS MUST EXIST.
a. FIRST, THE GOVERNMENT MUST HAVE AN ASSET MANAGEMENT SYSTEM THAT (1)
KEEPS AN UP-TO-DATE INVENTORY OF ELIGIBLE INFRASTRUCTURE ASSETS, (2)
PERFORMS CONDITION ASSESSMENTS OF THOSE ELIGIBLE INFRASTRUCTURE ASSETS
AT LEAST EVERY THREE YEARS, USING A CONSISTENT MEASUREMENT SCALE, AND
(3) ESTIMATES EACH YEAR THE ANNUAL AMOUNT TO MAINTAIN AND PRESERVE
THOSE ASSETS AT THE CONDITION LEVEL ESTABLISHED AND DISCLOSED BY THE
GOVERNMENT.
b. SECOND, THE GOVERNMENT MUST DOCUMENT THAT THE ELIGIBLE INFRASTRUCTURE
ASSETS ARE BEING MAINTAINED AT A LEVEL AT OR ABOVE THE CONDITION LEVEL
ESTABLISHED AND DISCLOSED BY THE GOVERNMENT.

D. TWO REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES MUST BE PREPARED, WHEN

USING THE MODIFIED APPROACH. ONE IS A SCHEDULE THAT DISCLOSES THE
ASSESSED CONDITION OF ELIGIBLE INFRASTRUCTURE ASSETS. THE SECOND REPORTS
THAT ESTIMATED ANNUAL AMOUNT TO MAINTAIN AND PRESERVE ELIGIBLE
INFRASTRUCTURE ASSETS COMPARED WITH THE AMOUNT ACTUALLY EXPENDED FOR
EACH OF THE PRECEDING FIVE FISCAL PERIODS.

8-5.
1. GOVERNMENTAL FUND STATEMENTS ARE TO BE PREPARED USING THE CURRENT FINANCIAL
RESOURCES MEASUREMENT FOCUS AND MODIFIED ACCRUAL BASIS OF ACCOUNTING.
PROPRIETARY FUND, FIDUCIARY FUND, AND GOVERNMENT-WIDE STATEMENTS ARE TO
BE PREPARED USING THE ECONOMIC RESOURCE MEASUREMENT FOCUS AND ACCRUAL BASIS
OF ACCOUNTING.

2. A. DISCRETELY PRESENTED COMPONENT UNITS ARE INCLUDED IN THE GOVERNMENT-WIDE BUT

NOT THE FUND FINANCIAL STATEMENTS.

B. FIDUCIARY FUNDS ARE INCLUDED IN THE FUND FINANCIAL STATEMENTS; STATEMENTS

INCLUDE THE STATEMENT OF FIDUCIARY NET POSITION AND THE STATEMENT OF CHANGES
IN FIDUCIARY NET POSITION. FIDUCIARY FUNDS ARE NOT INCLUDED IN THE GOVERNMENT-
WIDE FINANCIAL STATEMENTS.

C. INTERNAL SERVICE FUNDS ARE REPORTED IN THE PROPRIETARY FUNDS STATEMENT OF NET
POSITION AND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION.
INTERNAL SERVICE FUNDS, HOWEVER, ARE USUALLY PRESENTED IN THE GOVERNMENT-WIDE
STATEMENTS AS GOVERNMENTAL, NOT BUSINESS-TYPE ACTIVITIES.

3. A. THE CATEGORY, NET INVESTMENT IN CAPITAL ASSETS, INCLUDES ALL CAPITAL ASSETS, LESS
DEPRECIATION LESS DEBT ASSOCIATED WITH THE ACQUISITION OF CAPITAL ASSETS.

B. RESTRICTED NET POSITION INCLUDES NET RESOURCES (A) EXTERNALLY IMPOSED BY

CREDITORS (SUCH AS THROUGH DEBT COVENANTS), AND (B) IMPOSED BY LAW THROUGH
CONSTITUTIONAL PROVISIONS OR LEGISLATION. IT WOULD ALSO INCLUDE THE PRINCIPAL OF
PERMANENT FUNDS (THIS IS DISPLAYED AS NONSPENDABLE IN THE FUND-BASIS
STATEMENTS.

8-2
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-5 (CONTINUED).
C. UNRESTRICTED NET POSITION REPRESENT THOSE NET RESOURCES NOT REPRESENTED IN
EITHER OF THE OTHER TWO CATEGORIES. THAT NUMBER IS OBTAINED BY SUBTRACTING
FROM TOTAL NET POSITION THE NET CAPITAL ASSETS, NET OF RELATED DEBT, AND THE
RESTRICTED NET POSITION.

8-6. SOME OF THE ITEMS THAT WILL NEED ADJUSTING, WHEN MOVING FROM FUND FINANCIAL
STATEMENTS TO GOVERNMENT-WIDE FINANCIAL STATEMENTS, INCLUDE:

A. CAPITAL ASSET RELATED ENTRIES:

1) RECORDING THE BEGINNING BALANCE OF GENERAL FIXED ASSETS AND RELATED
ACCUMULATED DEPRECIATION ACCOUNTS.

2) ELIMINATING CONSTRUCTION EXPENDITURES SHOWN IN GOVERNMENTAL FUNDS

AND RECORDING THOSE AS CAPITAL ASSETS.

3) RECORDING DEPRECIATION EXPENSES FOR GENERAL FIXED ASSETS.

4) ADJUST PROCEEDS FROM SALE OF FIXED ASSETS TO GAINS FROM SALE OF FIXED
ASSETS AND RECORD THE DISPOSAL OF THE ASSET.

B. LONG-TERM DEBT RELATED ENTRIES:

1) RECORD THE BEGINNING BALANCES OF GENERAL LONG-TERM DEBT.

2) ELIMINATING PROCEEDS OF BONDS SOLD AND RECORDING THE LIABILITIES

INCURRED.

3) ELIMINATING EXPENDITURES FOR BOND PRINCIPAL AND REDUCING THE

ASSOCIATED LIABILITY.

4) MAKING ADJUSTMENTS FOR INTEREST EXPENSE ACCRUALS, INCLUDING

AMORTIZATION OF BOND DISCOUNTS AND PREMIUMS.

C. MAKING ADJUSTMENTS FOR REVENUE ACCRUALS, TO MEET THE PROVISIONS OF GASB

STATEMENT 33.

D. MAKING ADJUSTMENTS FOR EXPENSE ACCRUALS; FOR EXAMPLE, COMPENSATED

ABSENCES.

E. INTERNAL SERVICE FUND ENTRIES

1) BRING IN BALANCES OF INTERNAL SERVICE FUND STATEMENT OF NET POSITION
ACCOUNTS.

2) ADD TRANSACTIONS OF INTERNAL SERVICE FUNDS THAT ARE WITH EXTERNAL PARTIES.
3) REDUCE GOVERNMENTAL FUND EXPENSES BY THE NET OPERATING PROFIT OF
INTERNAL SERVICE FUNDS. GOVERNMENTAL FUND EXPENSES ARE INCREASED BY
ANY OPERATING LOSSES IN THE INTERNAL SERVICE FUNDS.

F. ELIMINATE ANY TRANSFERS AND OTHER INTERFUND BALANCES THAT ARE WITHIN
GOVERNMENTAL ACTIVITIES.
8-3
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-7.
CITY OF SOUTHERN SPRINGS
STATEMENT OF NET POSITION
APRIL 30, 2017

GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS:
CASH AND CASH EQUIVALENTS $ 380,000 $ 800,000 $1,180,000
RECEIVABLES 450,000 1,330,000 1,780,000
INVENTORIES 520,000 520,000
CAPITAL ASSETS, NET 13,500,000 7,100,000 20,600,000
TOTAL ASSETS 14,330,000 9,750,000 24,080,000

LIABILITIES:
ACCOUNTS PAYABLE 650,000 559,000 1,209,000
COMPENSATED ABSENCES PAYABLE 359,000 359,000
BONDS PAYABLE 7,800,000 3,210,000 11,010,000
TOTAL LIABILITIES 8,809,000 3,769,000 12,578,000

NET POSITION:
NET INVESTMENT IN CAPITAL ASSETS 5,700,000 3,890,000 9,590,000
RESTRICTED 554,000 190,000 744,000
UNRESTRICTED (733,000) 1,901,000 1,168,000
TOTAL NET POSITION $5,521,000 $ 5,981,000 $11,502,000

Net investment
Governmental Activities in capital assets Restricted Unrestricted Total
Net investment in capital assets:
Capital Assets (net) $ 13,500,000 $ 13,500,000
Less General Obligation Bonds (7,800,000) (7,800,000)
Restricted Net position: 554,000 554,000
Unrestricted (plug) (733,000) (733,000)

Total Net position $ 5,700,000 554,000 (733,000) 5,521,000

Net investment
Business-type Activities in capital assets Restricted Unrestricted Total
Net investment in capital assets:
Capital Assets (net) $ 7,100,000 $ 7,100,000
Less Revenue Bonds (3,210,000) (3,210,000)
Restricted Net position: 190,000 190,000
Unrestricted (plug) 1,901,000 1,901,000

Total Net position $ 3,890,000 190,000 1,901,000 5,981,000

8-4
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-8. CITY OF NORTHERN PINES

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2017
PROGRAM REVENUES NET (EXPENSE) REVENUE AND CHANGE IN NET POSITION
CHARGES FOR OPERATING GOVERNMENTAL BUSINESS-TYPE
FUNCTIONS/PROGRAMS EXPENSES SERVICES GRANTS ACTIVITIES ACTIVITIES TOTAL
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT $11,760,000 $1,310,000 $(10,450,000) $ $ (10,450,000)
PUBLIC SAFETY 23,900,000 210,000 $ 798,000 (22,892,000) (22,892,000)
PUBLIC WORKS 11,290,000 (11,290,000) (11,290,000)
HEALTH AND SANITATION 6,010,000 2,355,000 1,210,000 (2,445,000) (2,445,000)
CULTURE AND RECREATION 4,398,000 2,198,000 (2,200,000) (2,200,000)
INTEREST ON LONG-TERM DEBT 721,000 ________ ________ ( 721,000) ( 721,000)
TOTAL GOVERNMENTAL
ACTIVITIES 58,079,000 6,073,000 2,008,000 (49,998,000) (49,998,000)
BUSINESS-TYPE ACTIVITIES:
WATER AND SEWER SYSTEM 10,710,000 11,588,000 ---- ---- 878,000 878,000
PARKING SYSTEM 409,000 388,000 ---- ---- (21,000) ( 21,000)
TOTAL BUSINESS-TYPE
ACTIVITIES 11,119,000 11,976,000 --- --- 857,000 857,000
TOTAL $69,198,000 $18,049,000 $2,008,000 (49,998,000) 857,000 (49,141,000)
GENERAL REVENUES:
PROPERTY TAXES 27,112,000 27,112,000
SALES TAXES 20,698,000 20,698,000
INVESTMENT EARNINGS 325,000 325,000
SPECIAL ITEM-GAIN ON SALE OF LAND 1,250,000 1,250,000
TRANSFERS 700,000 (700,000) -

TOTAL GENERAL REVENUES,

SPECIAL ITEMS, AND TRANSFERS 49,760,000 (375,000) 49,385,000
CHANGE IN NET POSITION (238,000) 482,000 244,000
NET POSITION, JULY 1, 2016 8,200,000 2,300,000 10,500,000
NET POSITION, JUNE 30, 2017 $ 7,962,000 $ 2,782,000 $ 10,744,000

8-5
 Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-9.
CITY OF GRINDERS SWITCH
WORKSHEET ENTRIES
DEBITS CREDITS
1. LAND 7,690,000
BUILDINGS 33,355,000
IMPROVEMENTS OTHER THAN BUILDINGS 14,820,000
EQUIPMENT 11,554,000
ACCUMULATED DEPRECIATION, CAPITAL ASSETS 25,300,000
NET POSITION 42,119,000
2. BUILDINGS 4,800,000
IMPROVEMENTS OTHER THAN BUILDINGS 2,700,000
EXPENDITURES-CAPITAL OUTLAY 7,500,000
3. DEPRECIATION EXPENSE 2,730,275
ACCUMULATED DEPRECIATION-BUILDINGS
(33,355,000/40) 833,875
ACCUMULATED DEPRECIATION-IMPROVEMENTS
OTHER THAN BUILDINGS (14,820,000/20) 741,000
ACCUMULATED DEPRECIATION-EQUIPMENT
(11,554,000/10)
1,155,400
4. SPECIAL ITEM -PROCEEDS FROM SALE OF LAND 600,000
LAND 505,000
SPECIAL ITEM: GAIN ON SALE OF LAND 95,000

5. NET POSITION 4,018,000

BONDS PAYABLE 4,000,000
PREMIUM ON BONDS PAYABLE 18,000

6. PREMIUM ON BONDS PAYABLE 1,800

INTEREST EXPENSE 1,800

BONDS PAYABLE 412,000

EXPENDITURES-PRINCIPAL 412,000
7. OTHER FINANCING SOURCES-PROCEEDS OF BONDS 1,700,000
BONDS PAYABLE 1,700,000

8-6
 Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-10.
CITY OF SOUTH PITTSBURGH
WORKSHEET ENTRIES
DEBITS CREDITS
1. REVENUES-PROPERTY TAXES 47,500
NET POSITION 47,500

2. DEFERRED INFLOWS-PROPERTY TAXES 51,000

REVENUES-PROPERTY TAXES 51,000

3. PUBLIC SAFETY EXPENSE 29,000

COMPENSATED ABSENCES PAYABLE 29,000

4. PUBLIC SAFETY EXPENSE 22,000

NET PENSION OBLIGATION 22,000

5. TRANSFERS IN 700,000
TRANSFERS OUT 700,000

8-11.
CITY OF SOUTHERN PINES
WORKSHEET ENTRIES
DEBITS CREDITS
1. CASH 85,000
INVESTMENTS 125,000
DUE FROM GENERAL FUND* 15,000
INVENTORIES 325,000
CAPITAL ASSETS (NET) 960,000
ACCOUNTS PAYABLE 50,000
LONG-TERM ADVANCE FROM ENTERPRISE FUND 600,000
NET POSITION 860,000
DUE TO INTERNAL SERVICE FUND (GENERAL FUND) 15,000
* DUE FROM GENERAL FUND (INTERNAL SERVICE FUND) 15,000

2. NET POSITION 2,800

INTEREST REVENUE 2,800
3. NET POSITION 36,000
EXPENDITURES-GENERAL GOVERNMENT 12,000
EXPENDITURES-PUBLIC SAFETY 12,000
EXPENDITURES-PUBLIC WORKS 12,000

8-7
 Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-12
SHENANDOAH CITY
WORKSHEET ENTRIES
FOR THE YEAR ENDED DECEMBER 31, 2017
DEBITS CREDITS
CAPITAL LAND 7,230,000
ASSETS BUILDINGS 22,600,000
INFRASTRUCTURE 27,500,000
EQUIPMENT 6,370,000
ACCUMULATED DEPRECIATION - BUILDINGS 13,000,000
ACCUMULATED DEPRECIATION - INFRASTRUCTURE 9,000,000
ACCUMULATED DEPRECIATION - EQUIPMENT 3,100,000
NET POSITION 38,600,000

EQUIPMENT 856,700
BUILDINGS 1,651,900
EXPENDITURES-CAPITAL OUTLAY 2,508,600

DEPRECIATION EXPENSE 2,612,500

ACCUMULATED DEPRECIATION - BUILDINGS 1,100,000
ACCUMULATED DEPRECIATION - INFRASTRUCTURE 975,000
ACCUMULATED DEPRECIATION - EQUIPMENT 537,500

LONG NET POSITION 6,000,000

TERM BONDS PAYABLE 6,000,000
DEBT
OTHER FINANCING SOURCES - PROCEEDS OF BONDS 4,000,000
OTHER FINANCING SOURCES-PREMIUM ON BONDS 50,000
BONDS PAYABLE 4,000,000
PREMIUM ON BONDS PAYABLE 50,000

BONDS PAYABLE 500,000

EXPENDITURES-DEBT SERVICE-BOND PRINCIPAL 500,000

INTEREST INTEREST EXPENSE 265,000

ACCRUED INTEREST PAYABLE 265,000
[(6,000,000 – 500,000) * 6% * 6/12] + [(4,000,000) * 5% * 6/12]

NET POSITION 180,000

INTEREST EXPENSE 180,000
(2016 ACCRUAL REVERSAL)

PREMIUM ON BONDS PAYABLE 2,500

INTEREST EXPENSE 2,500

8-8
 Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-12 (CONTINUED).
SHENANDOAH CITY
WORKSHEET ENTRIES
(CONTINUED)

DEBITS CREDITS
DEFERRED REVENUES-PROPERTY TAXES 45,000
INFLOWS - NET POSITION 45,000
TAXES
DEFERRED INFLOWS OF RESOURCES –
PROPERTY TAXES 78,000
REVENUES-PROPERTY TAXES 78,000

ACCRUED NET POSITION 29,500

LIABILITIES ACCRUED LANDFILL CLOSURE AND 29,500
POSTCLOSURE CARE COSTS

PUBLIC WORKS EXPENSES (CLOSURE AND POSTCLOSURE CARE) 7,000

ACCRUED LANDFILL CLOSURE AND
POSTCLOSURE CARE COSTS 7,000

INTERNAL CASH 27,000

SERVICE DUE FROM OTHER FUNDS 21,200
ACTIVITIES INVENTORIES 25,000
LAND 25,000
BUILDINGS 44,000
EQUIPMENT 21,000
ACCUMULATED DEPRECIATION – BUILDINGS 13,200
ACCUMULATED DEPRECIATION - EQUIPMENT 12,600
ACCOUNTS PAYABLE 18,400
ADVANCE FROM ENTERPRISE FUND 10,000
NET POSITION 109,000

NET POSITION 6,000

INVESTMENT INCOME 6,000

EXPENDITURES-CURRENT-GENERAL GOVERNMENT 4,000

NET POSITION 4,000

INTERFUND TRANSFERS IN 145,900

BALANCES TRANSFERS OUT 145,900

DUE TO OTHER FUNDS 10,200

DUE FROM OTHER FUNDS 10,200

8-9
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-13 PART 1 SOLUTIONS TO THE EXCEL BASED EXERCISES ARE ALSO AVAILABLE IN EXCEL ON
THE INSTRUCTOR’S WEBSITE

WORKSHEET JOURNAL ENTRIES TO CONVERT

TO THE ACCRUAL BASIS OF ACCOUNTING

A CAPITAL ASSETS (NET) 7,890,000

NET POSITION BEGINNING OF YEAR 7,890,000

DEPRECIATION EXPENSE 316,000

CAPITAL ASSETS (NET) 316,000

CAPITAL ASSETS (NET) 651,900

CAPITAL OUTLAY (EXPENDITURE) 651,900

B. NO BEGINNING LONG TERM DEBT - -

PROCEEDS FROM SALE OF BONDS 700,000

PROCEEDS FROM BOND PREMIUM 22,800
BONDS PAYABLE 700,000
PREMIUM ON BONDS PAYABLE 22,800

BONDS PAYABLE 22,000

EXPENDITURE - PRINCIPLE ON BONDS 22,000

INTEREST EXPENSE 10,170

INTEREST PAYABLE 10,170
INTEREST FROM OCT. 1 TO DEC. 31
(700,000 - 22,000) * 6% * 3/12 = 10,170

PREMIUM ON BONDS PAYABLE 1,800

INTEREST EXPENSE 1,800

C. DEFERRED INFLOWS - PROPERTY TAXES 22,600

PROPERTY TAX REVENUE 22,600

PROPERTY TAX REVENUE 19,500

NET POSITION BEGINNING OF YEAR 19,500

D TRANSFERS IN 65,800
TRANSFERS OUT 65,800

8-10
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

PART A
CONTINUED
E CASH 22,850
DUE FROM OTHER FUNDS 15,750
SUPPLIES INVENTORY 3,500
CAPITAL ASSETS (NET) 21,600
ACCOUNTS PAYABLE 4,350
W AGES PAYABLE 490
INTEREST PAYABLE 600
BANK NOTE PAYABLE 10,000
ADVANCE FROM ENTERPRISE FUND 17,000
NET POSITION 31,260

NET POSITION 5,660

GENERAL GOVERNMENT EXPENDITURES 5,660

INTEREST EXPENSE 600

NET POSITION 600

8-11
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

JEFFERSON COUNTY
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED 12-31-2017
NET (EXPENSE) REVENUE AND CHANGE IN
PROGRAM REVENUES NET POSITION
CHARGES OPERATIONAL CAPITAL BUSINESS-
FOR GRANTS AND GRANTS AND GOVERNMENTAL TYPE
FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES ACTIVITIES TOTAL
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT $ 175,900 $ - $ (175,900) $ (175,900)
LIBRARY 12,700 - (12,700) (12,700)
DEPRECIATION 316,000 (316,000) (316,000)
INTEREST 29,970 (29,970) (29,970)
TOTAL GOVERNMENTAL ACTIVITIES 534,570 - - - (534,570) (534,570)
BUSINESS TYPE ACTIVITIES
WATER AND SEWER 768,000 805,000 37,000 37,000
TOTAL GOVERNMENT $ 1,302,570 $ 805,000 $ - $ - $ (534,570) $ 37,000 (497,570)
GENERAL REVENUES
TAXES:
PROPERTY TAXES 265,175 265,175
INTERGOVERNMENTAL REVENUES 280,000 280,000
INVESTMENT INCOME 21,100 21,100
TOTAL GENERAL REVENUES 566,275 - 566,275
CHANGE IN NET POSITION 31,705 37,000 68,705
NET POSITION, BEGINNING 8,660,458 41,650 8,702,108
NET POSITION, ENDING $ 8,692,163 $ 78,650 $ 8,770,813

8-12
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-13 PART 3 (CONTINUED)

JEFFERSON COUNTY
STATEMENT OF NET POSITION
DECEMBER 31, 2017

BUSINESS-
GOVERNMENTAL TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
CASH $ 363,198 $ 22,000 $ 385,198
INVESTMENTS 502,400 - 502,400
TAXES RECEIVABLE (NET) 51,325 - 51,325
INTEREST RECEIVABLE 1,700 - 1,700
INTERNAL BALANCES
CURRENT 15,750 (15,750) -
DUE FROM OTHER
GOVERNMENTS 280,000 - 280,000
INVENTORIES 3,850 18,000 21,850
INTERNAL BALANCES LONG-
TERM (17,000) 17,000 -
CAPITAL ASSETS, NET OF
ACCUMULATED DEPRECIATION 8,247,500 255,000 8,502,500
TOTAL ASSETS $ 9,448,723 $ 296,250 $ 9,744,973

LIABILITIES
ACCOUNTS PAYABLE 10,450 16,750 27,200
WAGES PAYABLE 1,340 850 2,190
ACCRUED INTEREST PAYABLE 10,770 - 10,770
CONTRACT PAYABLE 25,000 - 25,000
BANK NOTE PAYABLE 10,000 - 10,000
BONDS PAYABLE 678,000 200,000 878,000
PREMIUM ON BONDS SOLD 21,000 - 21,000
TOTAL LIABILITIES 756,560 217,600 974,160

NET POSITION

NET INVESTMENT IN CAPITAL ASSETS 7,548,500 55,000 7,603,500

RESTRICTED 936,000 - 936,000
UNRESTRICTED 207,663 23,650 231,313
TOTAL NET POSITION $ 8,692,163 $ 78,650 $ 8,770,813

8-13
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-14 PART 1
WORKSHEET JOURNAL ENTRIES TO CONVERT
TO THE ACCRUAL BASIS OF ACCOUNTING

A1 CAPITAL ASSETS (NET) 16,990,000

NET POSITION - BEGINNING 16,990,000

A2 DEPRECIATION EXPENSE 3,100,000

CAPITAL ASSETS (NET) 3,100,000

A3 CAPITAL ASSETS (NET) 11,180,818

CAPITAL EXPENDITURES 11,180,818

B1 NET POSITION - BEGINNING 10,596,000

BONDS PAYABLE 10,596,000

B2 OFS: PROCEEDS FROM ISSUANCE OF DEBT 9,675,400

BONDS PAYABLE 9,675,400

B3 BONDS PAYABLE 954,326

EXPENDITURE - DEBT PRINCIPAL 954,326

B4 INTEREST EXPENSE 167,000

ACCRUED INTEREST PAYABLE 167,000

B5 NET POSITION - BEGINNING OF YEAR 186,500

INTEREST EXPENSE 186,500

C1 DEFERRED INFLOWS -- PROPERTY TAXES 185,064

PROPERTY TAX REVENUE 185,064

C2 PROPERTY TAX REVENUE 188,400

NET POSITION - BEGINNING 188,400

D1 NET POSITION - BEGINNING 2,471,480

LANDFILL CLOSURE COST LIABILITY 2,471,480

D2 PUBLIC WORKS EXPENSE 128,520

LANDFILL CLOSURE COST LIABILITY 128,520

E1 OFS: TRANSFERS FROM OTHER FUNDS 2,730,144

OFU: TRANSFERS TO OTHER FUNDS 2,730,144

8-14
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt
CITY OF COTTONWOOD
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2017
PRIMARY GOVERNMENT
NET (EXPENSE) REVENUE AND CHANGE IN NET
POSITION
CHARGES BUSINESS-
FOR GOVERNMENTAL TYPE
FUNCTIONS/PROGRAMS EXPENSES SERVICES ACTIVITIES ACTIVITIES TOTAL

GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT 3,074,532 1,156,497 (1,918,035) - (1,918,035)
JUDICIAL ADMINISTRATION 4,400,325 44,018 (4,356,307) - (4,356,307)
PUBLIC SAFETY 6,328,125 275,492 (6,052,633) - (6,052,633)
PUBLIC W ORKS 4,753,945 - (4,753,945) - (4,753,945)
HEALTH AND W ELFARE 4,418,294 - (4,418,294) - (4,418,294)
EDUCATION 3,887,834 - (3,887,834) - (3,887,834)
PARKS AND RECREATION 3,155,325 604,359 (2,550,966) - (2,550,966)
COMMUNITY DEVELOPMENT 1,793,013 51,611 (1,741,402) - (1,741,402)
DEPRECIATION EXPENSE 3,100,000 (3,100,000) - (3,100,000)
INTEREST ON LONG-TERM DEBT 1,106,318 - (1,106,318) - (1,106,318)
TOTAL GOVERNMENTAL ACTIVITIES 36,017,711 2,131,977 (33,885,734) - (33,885,734)
BUSINESS TYPE ACTIVITIES
W ATER 4,041,987 5,385,233 1,343,246 1,343,246
SOLID W ASTE 1,556,633 1,851,433 294,800 294,800
PARKING 481,869 461,107 (20,762) (20,762)
TOTAL BUSINESS-TYPE ACTIVITIES 6,080,489 7,697,773 - 1,617,284 1,617,284

TOTAL PRIMARY GOVERNMENT 42,098,200 9,829,750 (33,885,734) 1,617,284 (32,268,450)

GENERAL REVENUES
PROPERTY
TAXES 24,583,914 24,583,914
OTHER LOCAL TAXES 11,403,125 11,403,125

MISCELLANEOUS 1,302,422 1,302,422

TRANSFERS (526,755) 526,755 -
TOTAL GENERAL REVENUES 36,762,706 526,755 37,289,461
CHANGE IN NET POSITION 2,876,972 2,144,039 5,021,011
NET POSITION, BEGINNING 17,671,149 29,897,624 47,568,773
NET POSITION, ENDING 20,548,121 32,041,663 52,589,784

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Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt

8-14 PART 3

CITY OF
COTTONWOOD
STATEMENT OF NET
POSITION
AS OF DECEMBER 31,
2017

PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE PRIMARY
ASSETS ACTIVITIES ACTIVITIES GOVERNMENT
CASH AND CASH EQUIVALENTS 8,161,351 4,025,000 12,186,351
INVESTMENTS 3,312,992 5,871,042 9,184,034
INVENTORY 33,126 71,042 104,168
RECEIVABLES (NET) -
TAXES RECEIVABLE 2,872,611 2,872,611
INTEREST RECEIVABLE 693,392 26,573 719,965
DUE FROM OTHER GOVERNMENTS 1,328,448 292,775 1,621,223
OTHER ASSETS 23,747 23,747
INVESTMENT IN PERMANENT ENDOWMENT 3,875,600 - 3,875,600
CAPITAL ASSETS (NET OF ACCUMULATED
DEPRECIATION) 25,070,818 42,142,915 67,213,733
TOTAL ASSETS 45,372,085 52,429,347 97,801,432

LIABILITIES
ACCOUNTS PAYABLE $ 2,320,134 493,849 2,813,983
ACCRUED WAGES AND BENEFITS 419,756 473,168 892,924
ACCRUED INTEREST PAYABLE 167,000 167,000
LANDFILL POST CLOSURE CARE COSTS LIABILITY 2,600,000 562,480 3,162,480
BONDS PAYABLE 19,317,074 18,858,187 38,175,261
TOTAL LIABILITIES 24,823,964 20,387,684 45,211,648

NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 5,753,744 23,284,728 29,038,472
RESTRICTED 4,447,614 - 4,447,614
UNRESTRICTED 10,346,763 8,756,935 19,103,698
TOTAL NET POSITION $ 20,548,121 32,041,663 52,589,784

SHADED AREAS ARE BUSINESS-TYPE ACTIVITIES. THE AMOUNTS ARE ASSUMED AND NOT PART OF
THE EXERCISE.

8-16