Deck 10: Government-Wide Financial Statements

Question 1

In the government-wide financial statements, governmental activities are reported using the current financial resources measurement focus and the accrual basis of accounting.

Answer 1

False

Question 2

The government-wide financial statements report on governmental, business-type, and fiduciary-type activities.

Answer 2

False

Question 3

In the government-wide statement of net position, net position is divided into three categories: net investment in capital assets, restricted, and unrestricted.

Answer 3

True

Question 4

The statement of activities must show-at a minimum-the net expense or revenue for each of the government's functions.

Question 5

Governmental GAAP requires state and local governments to present a reconciliation of the fund financial statements to the government-wide statements as part of the basic financial statements.
.

Question 6

Amounts due between individual governmental funds and individual enterprise funds are eliminated against each other and not shown on the government-wide statement of net position.

Question 7

Interfund transfers between individual governmental funds, as reported in the governmental funds statement of revenues, expenditures, and changes in fund balance, are eliminated against each other and not shown on the government-wide statement of activities.

Question 8

For government-wide financial reporting, the assets and liabilities of Internal Service Funds (ISFs) are aggregated with the assets and liabilities of the activities that are the primary consumers of ISF services.

Question 9

To prepare the governmental activities column of the government-wide statement of net position, expenditures for capital outlay reported in governmental funds during the current year should be reclassified as capital outlay expenses.

Question 10

To prepare the governmental activities column of the government-wide statement of activities, expenditures for capital outlay reported in a governmental fund during the current year should be reclassified as depreciation expense.

Question 11

To prepare the governmental activities column of the government-wide statement of net position, other financing sources received from the issuance of bonds in a Capital Projects Fund during the current year will need to be reclassified as Bonds payable.

Question 12

For government-wide reporting, property taxes associated with activities accounted for in governmental funds must be available and measurable to be recorded as revenue.

Question 13

A government that has deferred property tax revenues at its fiscal year-end must reclassify the deferred property tax revenues as Revenues-property taxes for its government-wide statement of activities.

Question 14

Interest expense is accrued for general long-term debt in the government-wide financial statements.

Question 15

For a government that has a trust fund in which it is accumulating sufficient assets to pay OPEB, the net OPEB liability should be reported in both the governmental fund balance sheet and the government-wide statement of net position.

Question 16

Converting governmental fund information to government-wide statements requires capital asset adjustments, long-term debt adjustments, and revenue adjustments.

Question 17

Capital assets and long-term debt are not reported in the government activities section of the government-wide statement of net position.

Question 18

The worksheet used to convert governmental fund information to the amounts needed for the governmental activities portion of the government-wide statements begins with debit and credit columns for the combined balances of the preclosing governmental fund balance sheet and statement of revenues, expenditures, and changes in fund balance.

Question 19

Capital assets of fiduciary funds are reported in both the government-wide and fund financial statements.

Question 20

Infrastructure assets are 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.

Question 21

Governments that use the modified approach to report infrastructure assets must capitalize infrastructure assets and depreciate them over their estimated useful lives.

Question 22

During its calendar year 2019, a city issued $800,000 of bonds to acquire various items of capital equipment. By the end of 2020, the city had spent all the bond proceeds to purchase capital assets. Accumulated depreciation on the assets was $120,000, and $150,000 of the bonds had been paid off. How much should the city report in its government-wide statement of net position as net investment in capital assets?

A) $0
B) $30,000
C) $630,000
D) $650,000

Question 23

In 2019, Monks Town received a State grant of $300,000 that can only be used to hire additional police officers. How should this revenue be reported in the Town's government-wide statement of activities?

A) As a general revenue
B) As a program-specific capital grant
C) As a charge for services
D) As a program-specific operating grant

Question 24

Where are fiduciary type funds reported in the government-wide statements?

A) Fiduciary type funds are excluded from the from the government-wide statements.
B) Fiduciary type funds are blended with the governmental type funds and included in the governmental activities column.
C) In a separate column before the discretely presented component units.
D) In a separate column after the discretely presented component units.

Question 25

The General Fund has a Due from Capital Projects Fund of $48,000 and a Due from Water Enterprise Fund of $100,000. The Capital Projects Fund has a Due to General Fund of $48,000, and the Water Enterprise Fund has a Due to General Fund of $100,000. What will be the amount of internal balances reported in the government-wide statement of net position?

A) Internal balances of $148,000
B) Internal balances of $100,000
C) Internal balances of $48,000
D) No internal balances are reported.

Question 26

How are interfund receivables and payables reported in the government-wide statement of net position?

A) All interfund receivables and payable are reported on the face of the government-wide statement of net position
B) Interfund receivables and payables are reported for governmental activities-but not for business-type activities-in the government-wide statement of net position
C) Amounts due between individual governmental funds are eliminated against each other; amounts due between individual enterprise funds are also eliminated against each other; amounts due between governmental and proprietary fund categories should be shown in the statement of net position and eliminated against each other in that statement.
D) Interfund receivables and payables are reported for business-type activities-but not for governmental activities-in the government-wide statement of net position

Question 27

The General Fund has a transfer out to a Debt Service Fund of $32,000 and a transfer in from an Electric Utility Enterprise Fund of $48,000. The Debt Service Fund has a transfer in from the General Fund of $32,000, and the Electric Utility Enterprise Fund has a transfer out to the General Fund of $48,000. What will be the amount of transfers reported in the government-wide statement of activities?

A) Transfers of $80,000
B) Transfers of $48,000
C) Transfers of $32,000
D) No transfers are reported.

Question 28

On July 1, 2019, a city used tax resources of $70,000 to acquire three police cars. The police cars were expected to have a useful life of three years, after which the salvage value would be $10,000. The city policy is to depreciate capital assets using the straight-line method. Describe the adjustment or adjustments needed to prepare government-wide financial statements from the city's calendar year 2019 fund-level financial statements.

A) No adjustments are needed
B) Record capital assets, and record six months' depreciation ($10,000)
C) Record capital assets, reduce capital outlay expenditures, and record depreciation ($20,000)
D) Record capital assets, reduce capital outlay expenditures, and record depreciation ($10,000)

Question 29

On July 1, 2019, a city used tax resources of $70,000 to acquire three police cars. The police cars were expected to have a useful life of three years, after which the salvage value would be $10,000. The city policy is to depreciate capital assets using the straight-line method. Identify the adjustment entries, if any, necessary to prepare government-wide financial statements from the city's calendar year 2019 fund-level statements.
a. No journal entries are needed
b.
$\begin{array}{llr} \text { Capital assets-equipment} &70,000\\ \text { Expenditures-capital outlay} &&70,000\\ \text { Depreciation expense-equipment } &11,667\\ \text {Accumulated depreciation-equipment } &&11,667\\\end{array}$


c.
$\begin{array}{llr} \text { Capital assets-equipment } &60,000\\ \text {Expenditures-capital outlay } &&60,000\\ \text { Depreciation expense-equipment} &10,000\\ \text { Accumulated depreciation-equipment } &&10,000\\\end{array}$

d.
$\begin{array}{llr} \text { Capital assets - equipment: } &70,000\\ \text {Expenditures-capital outlay } &&70,000\\ \text { Depreciation expense-equipment } &10,000\\ \text { Accumulated depreciation-equipment } &&10,000\\\end{array}$

Question 30

On July 1, 2019, a city used tax resources of $70,000 to acquire three police cars. The police cars were expected to have a useful life of three years, after which the salvage value would be $10,000. How much should the city report in its December 31, 2019, government-wide financial statements as investment in capital assets?

A) $70,000
B) $60,000
C) $58,333
D) $10,000

Question 31

On January 1, 2020, a city had outstanding general obligation bonds payable of $900,000. During 2020, the city used a Debt Service Fund to repay $100,000 of bonds that were outstanding at the start of the year. Based on the fund preclosing trial balances, what adjustments must the city make to prepare the government-wide financial statements on December 31, 2020?
a. No adjusting entry is needed
b.
$\begin{array}{lll}\text { Net position } & 900,000 \\\quad \text { Bonds payable } &&90,000 \\\text { Bonds payable } & 100,000 \\\quad \text { Expenditures-bond principal } & &100,000\\\end{array}$

c.
$\begin{array}{lll}\text { Net position }&800,000 \\\quad \text { Bonds payable }&& 800,000 \\\end{array}$

d.
$\begin{array}{lll}\text { Other financing source-proceeds from bond issue } &800,000 \\\text { Bonds pavable }&&800,000\end{array}$

Question 32

Merchants remit $800,000 to a county government in calendar year 2019 for sales taxes collected in 2019. In January, 2020, they send the county an additional $25,000 applicable to the year 2019. Based on past experience, the county expects to receive an additional $15,000 in late 2020, but applicable to 2019. How much should the county recognize as sales tax revenues when it prepares its fund and government-wide financial statements for 2019?
$\begin{array} { l l c } & \begin{array} { c } \text { Fund } \\\text { Statements }\end{array} & \begin{array} { c } \text { Government-wide } \\\text { Statements }\end{array} \\\end{array}$

A) $\begin{array} { l l c } & \$ 800,000 &&&&& \$ 800,000 \\\end{array}$
B) $\begin{array} { l l c } & \$ 800,000 &&&&& \$ 840,000 \\\end{array}$
C) $\begin{array} { l l c } & \$ 825,000 &&&&& \$ 825,000 \\\end{array}$
D) $\begin{array} { l l c } & \$ 825,000 &&&&& \$ 840,000\end{array}$

Question 33

A county that did not previously have a property tax levies a property tax for $900,000 in December 2019. The tax is for the budget year January 1 to December 31, 2020. Because it sends out the bills on December 1, it actually collects $500,000 in cash by December 31, 2019. It collects an additional $375,000 of 2020 property taxes during calendar year 2020, $20,000 during January 1 through February 28, 2021, and the remaining $5,000 in June 2021.
How much property tax revenue should the county report in its 2020 governmental fund and government-wide financial statements?
$\begin{array} { l l c } & \begin{array} { c } \text { Fund } \\\text { Statements }\end{array} & \begin{array} { c } \text { Government-wide } \\\text { Statements }\end{array} \\\end{array}$

A) $\begin{array} { l l c } & \$ 375,000 &&&&& \$ 400,000 \\\end{array}$
B) $\begin{array} { l l c } & \$ 875,000 &&&&& \$ 900,000 \\\end{array}$
C) $\begin{array} { l l c } & \$ 875,000 &&&&& \$ 895,000 \\\end{array}$
D) $\begin{array} { l l c } & \$ 895,000 &&&&& \$ 900,000\end{array}$

Question 34

A county that did not previously have a property tax levies a property tax for $900,000 on January 1, 2020 for the budget year January 1 to December 31, 2020. The county collected $875,000 during 2020, $20,000 during January 1 through February 28, 2021, and the remaining $5,000 in June 2021.
What adjustment is needed to the data reported in the governmental fund financial statements to prepare the government-wide statements?
a. No adjusting entry is needed
b.
$\begin{array}{lr}\text { Net position } & 5,000 \\\quad \text { Revenues-property taxes } &&5,000 \\\end{array}$

c.
$\begin{array}{lr}\text { Deferred revenues-property taxes } & 5,000 \\\quad \text { Revenues-property taxes } &&5,000 \\\end{array}$

d.
$\begin{array}{lr}\text { Net position } &25,000 \\\quad \text { Revenues-property taxes } && 25,000 \\\end{array}$

Question 35

Pursuant to law, a state agrees to reimburse a county 50 percent of the costs incurred by the county to maintain county roads, provided the county incurs no more than $800,000 in allowable costs. Allowable costs include accrued but unpaid salaries, but do not include encumbrances. For its calendar year 2019, the county's records show the following for its road maintenance program: cash disbursements - $780,000; accrued salaries payable -$15,000; encumbrances - $10,000. How much intergovernmental revenue should the county recognize in its government-wide financial statements?

A) $795,000
B) $397,500
C) $400,000
D) $390,000

Question 36

A small village (which keeps its records on a calendar-year basis) issued $1 million of bonds on April 1, 2019. The first payment of principal was due April 1, 2020, but interest at 6 percent per annum on the outstanding debt was due on October 1, 2019 and April 1, 2020.
How much interest expenditure (expense) should the village recognize in its governmental fund and government-wide financial statements for the calendar year 2019?
$\begin{array} { l l c } & \begin{array} { c } \text { Fund } \\\text { Statements }\end{array} & \begin{array} { c } \text { Government-wide } \\\text { Statements }\end{array} \\\end{array}$

A) $\begin{array} { l l c }& \$ 30,000 &&&&&& \$ 30,000 \\\end{array}$
B) $\begin{array} { l l c }& \$ 30,000 &&&&&& \$ 45,000 \\\end{array}$
C) $\begin{array} { l l c } & \$ 30,000 &&&&&& \$ 60,000 \\\end{array}$
D) $\begin{array} { l l c } & \$ 45,000 &&&&&& \$ 45,000\end{array}$

Question 37

A city experienced several auto damage claims during its year ended December 31, 2019. The total amount claimed was $600,000. No cash was paid out in 2019. However, claims totaling $200,000 were settled by December 31, 2019. These claims were settled for $80,000 and were scheduled for payment on January 15, 2020. City attorneys felt that it was highly probable that the remaining $400,000 of claims would be settled during 2020 for about $160,000.
How much should the city recognize as claims expenses in its government-wide financial statements for 2019?

A) $0
B) $80,000
C) $240,000
D) $480,000

Question 38

A government issued $4 million of general obligation bonds on November 1, 2019, to build a fire house. The first debt service payment ($200,000 principal plus 6 percent interest per annum on outstanding debt) is due November 1, 2020. To prepare government-wide financial statements at December 31, 2019, what journal entry is needed regarding debt service?
a. No journal entry is needed
b.
$\begin{array}{lr}\text { Interest expense } & 40,000 \\\quad \text { Interest payable } &&40,000 \\\end{array}$

c.
$\begin{array}{lr}\text { Interest expense } & 40,000 \\\text { Bond principal expense } & 33,333 \\\quad \text { Debt service payable } &&73,333 \\\end{array}$

d.
$\begin{array}{lr}\text { Interest expense } & 240,000 \\\quad \text { Interest payable } & & 240,000\end{array}$

Question 39

A county reported a long-term compensated absences liability of $530,000 in its calendar year 2019 government-wide financial statements. When preparing its governmental fund financial statements for calendar year 2020, the county government reported a $25,000 liability for compensated absences due and payable at December 31, 2020. After analyzing its employee leave records, the county determined that its long-term compensated absences liability had increased to $550,000 at December 31, 2020. What journal entry is needed regarding compensated absences to convert the data in the 2020 governmental fund financial statements to government-wide statements?
a.
$\begin{array} { l r r } \text { Net position } & 530,000 & \\\text { Compensated absences expense }& 20,000 \\\text { Compensated absences payable }&& 550,000 \\\end{array}$

b.
$\begin{array} { l r r }\text { Compensated absences expense } & 550,000 & \\\text { Compensated absences payable }&& 550,000 \\\end{array}$

c.
$\begin{array} { l r r }\text { Compensated absences expense } & 575,000 \\ \text { Compensated absences payable }& & 575,000 \\\end{array}$

d.
$\begin{array} { l r r }\text { Compensated absences expense } &25,000\\\quad \text { Compensated absences payable } & & 25,000\end{array}$

Question 40

Tinsel Town has only two funds, the General Fund (GF), and a Capital Projects Fund (CPF). Summarized operating statements for each of the funds for fiscal 2019 are as follows: $$\begin{array} { l r r r } & \text { GF } & \text { CPF } & \text { Total } \\\text { Revenues }& \$ 100 & \$ - & \$ 100 \\\text { Expenditures } & 89 & 62 & 151 \\\text { Bond proceeds } & - & 70 & 70 \\\text { Increase in fund balance } & 11 & 8 & 19 \\\text { Beginning fund balance } & 52 & 0 & 52 \\\text { Ending fund balance }& 63 & 8 & 71\end{array}$$ Assume that all the expenditures in the Capital Projects Fund were capital outlays and that all the expenditures in the General Fund were for operations. Also, assume that revenues in the General Fund would be the same under the modified accrual and accrual basis of accounting. The total net position balance for Tinsel Town's governmental activities in the government-wide financial statements at the end of fiscal 2019 is:

A) $63
B) $43
C) $68
D) $75

Question 41

Which of the following is not likely to be a reconciling item between the governmental fund balance sheet and the government-wide statement of net position?

A) Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
B) Governmental fund intergovernmental receivables and payables are offset against each other in the statement of net position but not in the fund balance sheet.
C) Bonds payable are not due and payable in the current period and therefore are not reported in the funds.
D) A portion of the revenues is not available to pay current-period expenditures and, therefore, is deferred in the funds.

Question 42

On January 1, 2019, a county's government-wide financial statements shows general capital assets of $2,400,000. For the year ended December 31, 2019, the county's fund financial statement shows an amount of $125,000 next to the caption "Expenditures-capital outlay." To prepare its 2019 government-wide financial statements, the preparer makes a worksheet that uses the 2019 governmental fund-level financial statements as the starting point. As a result, the worksheet does not show any capital assets at the beginning of the year. What adjusting entry is needed to report the required information about capital assets on the government-wide statements?
a.
$\begin{array}{lr}\text { Capital assets } & 2,525,000 \\\quad \text { Expenditures - capital outlay } & & 2,525,000 \\\end{array}$

b.
$\begin{array}{lr}\text { Capital assets } &125,000 \\\quad \text { Expenditures - capital outlay } & &125,000 \\\end{array}$

c.
$\begin{array}{lr}\text { Capital assets } &2,525,000 \\\quad \text { Net position } &&2,400,000 \\\quad \text { Expenditures - capital outlay } &&125,000 \\\end{array}$

d.
$\begin{array}{lr}\text { Capital assets } &2,400,000\\\text { Expenditures - capital outlay } &125,000\\\quad \text { Net position } &&2,525,000\end{array}$

Question 43

What are the reporting requirements for documenting the management and preservation of infrastructure assets when the "modified approach" is used?

A) Management must attest in the MD&A to the fact that is has an asset management system and that its assets are being preserved at an established condition level.
B) There is no reporting requirement regarding the "modified approach," but the independent auditor must take appropriate audit steps regarding that issue when attesting to the financial statements.
C) A statement must be included in the notes to the financial statements to the effect that the infrastructure assets are being preserved.
D) Documentation must be presented in required supplementary information documenting that the infrastructure assets are being preserved.

Question 44

Regina County has an Internal Service Fund (ISF) that operates a motor pool for various county agencies, all of which receive appropriations from the General Fund. The amounts billed by the ISF during 2020 were: General government programs - $80,000; Public safety programs - $10,000; and Social services programs - $30,000. These amounts are included in the total expenditures reported in the fund financial statements for each program.
Following is a condensed ISF operating statement:
$$\begin{array} { l r } \text { Changes for services } & \$ 120,000 \\\text { Operating expenses } & \$ 80,000 \\\text { Operating income } & 40,000 \\\text { Nonoperating expenses } & 10,000 \\\text { Change in net position } & 30,000 \\\text { Net position, beginning of period } & 180,000 \\\text { Net position, end of period } & \$ 210,000 \\\end{array}$$ Required:
a. Calculate how much Regina County should report as motor pool transportation expenses for each of its programs in its 2020 government-wide statement of activities.
b. Assume the ISF assets are: Cash of $20,000; and Capital assets, net of depreciation, of $180,000. Describe how the ISF assets are brought into the government-wide financial statements.

Question 45

The city of Grace reported $12,000,000 of general capital assets and accumulated depreciation on these assets of $4,000,000 on its December 31, 2019 government-wide statement of net position. The city reported capital outlay expenditures of $1,200,000 in its governmental funds during its fiscal year ending December 31, 2020. Also, depreciation associated with general capital assets for the fiscal year ending December 31, 2020 was $800,000. Prepare the three journal entries needed for the December 31, 2020 worksheet that converts the governmental fund capital asset information to information needed for the government-wide financial statements.

Question 46

The city of Grace reported $5,000,000 of long-term general obligation bonds payable on its December 31, 2019 government-wide statement of net position. The city reported another financing source of $1,000,000 from the issuance of a new general obligation bond in its Capital Projects Fund during its fiscal year ending December 31, 2020. Also, the city reported an expenditure for the repayment of bond principal of $250,000 in its Debt Service Fund for the fiscal year ending December 31, 2020. Prepare the three journal entries needed for the December 31, 2020 worksheet that converts the governmental fund long-term debt related information to the government-wide financial statements.

Question 47

For the following situations, make adjusting entries necessary to prepare government-wide financial statements. Where appropriate, take account of the amounts reported in the fund-level financial statements.
a. A city instituted a new sales tax starting January 1, 2019. It collected $600,000 of sales taxes during 2019. When the city prepared its fund-level statements, it accrued an additional $200,000 for sales taxes remitted by larger businesses in January 2020, for taxes collected in the fourth quarter of 2019. However, smaller businesses are not required to remit fourth quarter collections until April 2020. No accrual was made for those taxes, which were estimated to be $28,000.
b. See facts in situation a. For the calendar year 2020, the city reported sales taxes of $800,000 in its fund-level financial statements. This amount includes all taxes collected in 2020 (applicable to 2020 and 2019), as well as the accrual for larger merchant remittances in January 2021. The accrual does not include estimated remittances of $35,000 from smaller merchants in April 2021.

Question 48

When it prepared its financial statements for calendar year 2018, Watson Town assumed that it would collect all unpaid property taxes during the first 60 days of 2019. As a result, no deferred revenues were reported. The following facts pertain to the property tax revenues for calendar years 2019 and 2020. Make adjusting entries needed to prepare both the governmental fund-level and the government-wide financial statements for 2019 and 2020. Watson Town does not record deferred revenues until it makes end of the year adjustments.
$$\begin{array} { l r r } & 2019 & 2020 \\ \text { Tax lew } & \$ 700,000 & \$ 730,000 \\\text { Taxes collected in cash from the year's lew } & \$ 670,000 & \$ 690,000 \\\text { Taxes expected to be collected in first } \\\text { 60 days of the following year } & \$ 22,000 & \$ 29,000 \\\text { Taxes expected to be collected later in } \\\text { the following year }& \$ 8,000 & \$ 11,000\end{array}$$ Assume that all taxes expected to be collected in the following year were actually collected when expected. Also assume that all journal entries to record the tax levy, tax collections and so on were made, as appropriate.

Question 49

For the following situations, make adjusting entries necessary to prepare a city's government-wide financial statements for the year ended December 31, 2020.
a. In its government-wide financial statements for the year ended December 31, 2019, the city had reported a $900,000 long-term liability for estimated judgments and claims. At December 31, 2020, the city estimated that the long-term liability would be $935,000.
b. In preparing its fund financial statements for 2020, the city accrued a $35,000 liability for compensated absences that were expected to be liquidated with expendable available resources. The city calculated that the long-term liability for compensated absences increased from $835,000 at December 31, 2019 to $850,000 at December 31, 2020.

Question 50

The following information is extracted from the City of Lucas' government-wide statement of net position at December 31, 2019:
$\begin{array}{lr}\text { Capital assets } & \$ 2,000,000 \\\text { Accumulated depreciation, capital assets } & \$ 1,600,000 \\\text { Annual depreciation rate on capital assets } & 10 \% \\\text { Bonds payable } & -0-\end{array}$

The following information is extracted from the city's governmental funds statement of revenues, expenditures, and changes in fund balances for the year ended December 31, 2020.
$\begin{array} { l r } \text { Expenditures-capital outlay (General Fund) } & \$ 40,000 \\ \text { Expenditures-capital outlay (Capital Projects Fund) } & \$ 600,000 \\ \text { Expenditures-bond principal (Debt Service Fund) } & \$ 60,000 \\ \text { Expenditures-bond interest (Debt Service Fund) } & \$ 15,000 \\ \text { Proceeds from bond issue (Capital Projects Fund) } & \$ 600,000 \end{array}$ According to the notes to the financial statements, the city sold $600,000 of 5-year serial bonds on April 1, 2020, to finance the acquisition of capital assets. Principal is payable every six months, starting October 1, 2020. Interest of 5 percent per annum on the unpaid principal is also payable every six months, starting October 1, 2020. Assume all assets acquired in 2020 were acquired July 1 and all have a 10-year life.
Required:
a. Prepare journal entries so the foregoing information can be used in a worksheet to prepare government-wide financial statements for the year ended December 31, 2020.
b. Compute the amounts for the following statement elements as they will appear in the government-wide financial statements for the year ended December 31, 2020:
1) Depreciation expense
2) Interest expense
3) Capital assets
4) Accumulated depreciation, capital assets
5) Interest payable
6) Bonds payable
7) Net investment in capital assets

Question 51

On the following page is the government-wide adjusted trial balance for the Town of Catlettville as of June 30, 2020, the end of its fiscal year. The adjustments needed to convert accounting information from the current financial resources measurement focus and modified accrual basis of accounting to the economic resources measurement focus and accrual basis of accounting have been made.
The Town government performs three functions, general government, public safety and roads and bridges. The Town has no business-type activities nor any component units. Program revenues include charges for services (related to the general government and public safety functions), operating grants (for public safety) and capital grants (for roads and bridges). General revenue sources are property taxes, other taxes, investment revenues, and miscellaneous revenues.
Using this information, prepare in good form (a) the government-wide statement of net position (using a classified format), and (b) the government-wide statement of activities as of, and for the year ended, June 30, 2020. There are no restricted assets or liabilities; the long-term debt (both portions) is the only debt related to the Town's capital assets.