Assignment Task:
Beecham City provides the following information in order to prepare reconciliations between governmental fund financial statements and government-wide financial statements (fiscal year 1/1/2023 to 12/31/2023).
Total Fund Balance 12/31/23 $400,000
Total Change in Fund Balance for the year ending 12/31/23 $100,000
Capital Assets: 1) Acquisition value of 1/1/23 capital assets of $20,000,000 with an associated accumulated depreciation $10,400,000; 2) During 2023 Beecham purchased new capital assets equal to $2,000,000; 3) During 2023 Beecham sold capital assets with a book value of $60,000 for $64,000 cash; 4) 2023 Depreciation expense is equal to $1,000,000.
Bonds Payable: 1) Bonds Payable outstanding as of 1/1/23 is $6,400,000; 2) An additional issuance at face value during 2023 equals $800,000; 3) A repayment of bonds payable of $400,000 occurred during 2023.
Interest on LT Debt: 1) Accrued interest payable exists as of 12/31/2023 but was not accrued in the governmental fund (not due and payable) in the amount of $360,000.
Property taxes: All property taxes receivables were collected in 2023 with the exception of $160,000. Of that $160,000, $120,000 is expected to be collected within the first 60 days of 2024 and the remainder beyond that time period.
Part A: Prepare a reconciliation, as shown in class, between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position at 12/31/23. Use proper headings and show any supporting computations for full credit.
Part B: Prepare a reconciliation, as show in class, between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balance and the Government-wide Statement of Activities for the year ending 12/31/23. Use proper headings and show any supporting computations for full credit.