Problem

Preparation of a Statement of Net Assets for a Governmental EntityGibson City reported the...

Preparation of a Statement of Net Assets for a Governmental Entity

Gibson City reported the following items at December 31, 20X2. It has no component units and does not depreciate its infrastructure fixed assets. All bonds—general obligation bonds and rev­enue—were issued to acquire capital assets. As of December 31, 20X2, net assets of $25,000 were restricted for road maintenance in special revenue funds, and net assets of $30,000 were restricted for debt service. Cash of $5,000 was restricted in business-type activities for plant maintenance.

 

Governmental Activities

Business-Type Activities

Assets:

 

 

Cash and cash equivalents

$ 68,000

$28,000

Taxes receivable (net)

52,000

 

Accounts receivable (net)

 

12,000

Due from governmental activities

 

5,000

Inventories

10,000

7,000

Investments

25,000

15,000

Capital assets:

 

 

   Land

100,000

50,000

   Infrastructure

60,000

 

   Other depreciable assets (net)

75,000

45,000

Liabilities:

 

 

   Vouchers payable

32,000

4,000

   Accrued interest payable

1,500

2,000

   Due to business-type activities

5,000

 

   Revenue bonds payable

 

80,000

   General obligation bonds payable

60,000

 

Required

Kaplan CPA Review

Using the information provided, prepare in good form a statement of net assets for Gibson City at December 31, 20X2.

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Solutions For Problems in Chapter 18