Question

The following information is available for the preparation of the government-wide financial statements of the City of Sunbury as of June 30, 2017:

Accounts payable, business-type activities	$340,000
Accounts payable, governmental activities	610,000
Capital assets, net, business-type activities	10,400,000
Capital assets, net, governmental activities	10,800,000
Cash and cash equivalents, business-type activities	1,700,000
Cash and cash equivalents, governmental activities	1,800,000
Inventories, business-type activities	600,000
Net assets, restricted for debt service, business-type activities	640,000
Net assets, restricted for debt service, governmental activities	930,000
Net assets, invested in capital assets, net, business-type activities	6,700,000
Net assets, invested in capital assets, net, governmental activities	7,260,000
Non-current liabilities, business-type activities	5,190,000
Non-current liabilities, governmental activities	3,150,000
Receivables, business-type activities	1,430,000
Receivables, governmental activities	400,000

Assume all long-term liabilities were incurred in the acquisition of capital assets.

Required: From the information given above, prepare, in good form, a statement of net position for the City of Sunbury as of June 30, 2017. Include the unrestricted net assets, which are to be computed from the information presented above. Include a total column. Sunbury has no component units.

Answer 1

Statement of net position for the City of Sunbury as of June 30, 2017

	Business type activities	Governmental activities
Assets:	$	$
Cash and Cash Equivalents	1,700,000	1,800,000
Receivables	1,430,000	400,000
Capital Assets	10,400,000	10800,000
Inventories	600,000	-
Total assets (A)	14,130,000	13,000,000
Liabilities:
Accounts payable	340,000	610,000
Non-current liabilities	5,190,000	3,150,000
Total liabilities (B)	5,530,000	3,760,000
Net position:
Net investment in capital assets	6,700,000	7,260,000
Restricted for:
Debt service	640,000	930,000
Unrestricted (Balance figure)	1,260,000	1,050,000
Total net position (C )= (A)-(B)	8,600,000	9,240,000