CITY OF SMITHVILLE PROJECT - CASE B
This software cannot be used in campus labs. If you do not have a computer, find someone who will allow you to use their system for the duration of the semester. The Smithville software does not interfere with other programs and is easily uninstalled when the project is complete.
There has been an update to the software since the textbook was printed as there is a problem with saving data if you make a change to subsidiary ledgers. DO NOT USE THE CD INCLUDED WITH THE TEXTBOOK. Please go to the following website to download an updated version of the Smithville software. http://highered.mcgraw-hill.com/sites/0073100951/student_view0/text_updates_and_errata.html
The objective of accounting for a state or local government is to report the financial transactions in the financial statements for the year. Simply doing the journal entries will not give you a high score on this project. Although the journal entries are time consuming, the importance of the project is the learning that comes from preparing the financial statements from the ledgers.
RULES FOR COMPLETING THE SMITHVILLE PROJECT
(Note point deductions for non-compliance)
- The Smithville Project MUST be handed in on the date specified in the syllabus at the beginning of class. LATE PROJECTS WILL NOT BE ACCEPTED AND YOU WILL RECEIVE A ZERO. If you have not completed the project on the due date, hand in what you have completed as receiving some points for homework is better than no points at all. Do not wait until the day the project is due, hand in no project, and tell me of a problem that could have been handled weeks earlier. You will receive a zero.
- I must receive a printed copy (hardcopy) of the project. DO NOT give me floppy disks as I WILL NOT print the project for you. You will receive a zero if you do not give me a printed copy of the project.
- The project should be put in the same orders as the chapters listed in the chart below. If it is out of order, 10 points will be deducted from the total score.
- DO NOT give me statements I did not ask for in the chart below. Any additional, unrequested statements or duplicate statements will result in a 5 point deduction for each additional statement.
- The project should be bound in some fashion. Binding means the pages are attached together in a somewhat permanent fashion such as a binder, stapled, or the like. This does not mean a binder clip or alligator clip only. You may use a binder clip to reinforce a questionable stapling job. DO NOT hand in loose pages jammed in an envelope or folder. You may staple each chapter and hand them in if you bind the entire group with a binder clip or put the sections in a pocket folder, but they must be in the correct order. If the entire project is not bound, 10 points will be deducted from the total score.
- DO NOT bind tables that are written or printed in landscape format (11 x 8 2) with the totals facing into the binding. Totals should ALWAYS face away from the binding, toward the edge that is to be turned to reach the next page. If totals are in the binding, 10 points will be deducted from the total score.
- DO NOT hand in photocopies. Give me your original work. Any photocopied pages are worth 0 points.
- When you have a statement with footnotes or with a reconciliation, if the statement is in landscape print the notes or reconciliation in the same direction. If you do not print the additional information in the same direction, 3 points will be deducted.
- If you have a statement that is long or wide, consider printing it in landscape or with a smaller font to make the statement fit on one page. If you must use more than one page for a statement, use sensible page breaks and make sure there are headings on each page that make the statement readable. Some statements require a single column format because they contain several different funds so do not use a multi-column display. These infractions are a 3 point deduction.
- Put one statement on a page. If more than one statement is on a page you will only get points for the first statement.
- Good form is expected in the accounting reports. Accounting is a precise profession. Poor form will result in a loss of 10 points from the total score.
- A. Use a plain type font such as Arial; decorative fonts are not appropriate for financial reports because they are difficult to read.
- B. Put lines at the bottom of columns and under totals to make them easy to read. Final totals should have a double underline.
In Excel, DO NOT use underline (U) for this task. Go further to the right on the Format Toolbar and find the borders symbol (near the paint can usually), open the menu and choose your line style to underline the entire cell width.
- C. Put commas in your numbers, and final or important totals should have a dollar sign ($).
In Excel, highlight the cells in question and select Format, click the number tab, under category select Number, choose 0 or 2 decimal places, put a check in the box next to Use 1000 separator, and be sure to be consistent with the box showing negative number format. When you want to put in a dollar sign ($), highlight the cell, select Format, click the number tab, under category select CURRENCY (not accounting or your justification will not be correct).
- D. If you start using cents with the project, continue it throughout.
- E. Numbers are right justified while text in financial statements is left justified. Titles are centered.
- F. If you are using a minus sign for negative numbers, continue it throughout; the same is true if you use parentheses.
- The Smithville software has the ability to produce a trial balance. I expect all trial balances to be produced with the Smithville software (not spreadsheet software). Any trial balances produced without the Smithville software will be given a zero unless a satisfactory explanation is given in writing in the project.
- DO NOT print on the back of a page. Print only on one side or I will deduct 10 points from the total score.
- Use the totaling/summing features included in spreadsheet software. This is particularly important if you are just copying numbers from the solutions manual. Use the software to check your accuracy or you will lose points for errors.
- DO NOT include the instructions to the project in your bound copy. I want only the items listed in the chart below or I will deduct 5 points from the total score.
- If you have printed the project and are ready to hand it in, but notice an error in labeling, title or format, correct it by hand with a black pen. This does not mean you should make numerous corrections to journals, ledgers or trial balances with a pen. Such errors should have been corrected using the software or it will be considered in error.
- If your ledgers and trial balances are incorrect then logically your statements cannot be accurate. In such a case, if you choose to copy your statements from the solutions manual expect to lose points.
- PLEASE CHECK THE SOLUTIONS MANUAL AS YOU DO THE PROJECT. Errors will result in point deductions. Solutions manuals are on reserve at the ODU Library, and at the Virginia Beach Higher Education Information Resource Center Reserve area. The solutions manual is NOT to be taken home, photo copied, photographed, or computer scanned. You will need a student ID to use the reserve materials at the library or some sort of ID for the Virginia Beach Center.
CASE B Journals, Ledgers and Reports to be Handed In
 |
Journal, Ledger or Report
You may want to print the Chart of Accounts for each Fund to use as reference before starting your entries |
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2 |
2b General Fund Post Closing Trial Balance 2007 2d Governmental Activities Post Closing Trial Balance 2007 |
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2 - 4 |
General Fund General Journal 2007-2008 (Print all after the closing entries are completed)
General Fund General Ledger 2007-2008
General Fund Revenues Ledger 2007-2008
General Fund Appropriations Ledger 2007-2008 |
|
3 |
3b General Fund Pre Closing Trial Balance 2008 Print Pre-closing Revenue & Appropriations Subsidiary Ledgers to check your work, but DO NOT HAND THESE IN |
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4 |
General Fund Pre Closing Trial Balance 2008 (after 4a15) General Fund Post Closing Trial Balance 2008 (after 4a16)
4b General Fund Balance Sheet 2008
4c General Fund Statement of Revenues, Expenditures & Fund Balance
4d & e General Fund Stmt Revenues, Expend - Budget and Actual & Reconciliation |
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5 |
Street Improvement Fund General Journal 2008 (after closing)
Street Improvement Fund General Ledger 2008
5a18 Street Improvement Pre Closing Trial Balance 2008
5a18 Street Improvement Post Closing Trial Balance 2008
5d Street Improvement Balance Sheet 2008
fe Street Improvement Stmt of Revenues, Expenditures & Fund Balance |
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6
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St. Improvement Debt Service General Journal 2008-2009 (after closing)
St. Improvement Debt Service General Ledger 2008-2009
6c St. Improvement Debt Service Pre Closing Trial Balance 2008
6c St. Improvement Debt Service Post Closing Trial Balance 2008 6d St. Improvement Debt Service Debt Margin computation
6e St. Improvement Debt Service Pre Closing Trial Balance 2009
6e St. Improvement Debt Service Post Closing Trial Balance 2009
6f St. Improvement Debt Service Balance Sheet 2009
6g St. Improvement Debt Service Stmt. Revenues, Expenditures 2009
6h St. Improvement Debt Service Stmt Rev, Expend - Budget - Actual |
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7 |
Solid Waste Disposal General Journal 2007-2008 (after closing)
Solid Waste Disposal General Ledger 2007-2008
7a Solid Waste Post Closing Trial Balance 2007
7b13 Solid Waste Pre Closing Trial Balance 2008
7c Solid Waste Post Closing Trial Balance 2008
7d Solid Waste Statement of Net Assets 2008
7e Solid Waste Statement of Revenues, Expenses & Net Assets 2008
7f Solid Waste Statement of Cash Flows 2008 |
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8 |
Investment Pool General Journal 2009 (after closing)
Investment Pool General Ledger 2009
8a10 Investment Pool Pre Closing Trial Balance 2009
8b Investment Pool Post Closing Trial Balance 2009
8c Investment Pool Calculation of Equities before withdrawal of CSD
8d Investment Pool Calculation of Equities after withdrawal of CSD
8e Investment Pool Statement of Net Assets 2009
8f Investment Pool Statement of Changes in Net Assets 2009 |
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2 - 6, 9 |
Governmental Activities General Journal 2007-2008 (after closing)
Governmental Activities General Ledger 2007-2008 |
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9 |
9a Governmental Activities Pre Closing Trial Balance 2008
9b Governmental Activities Post Closing Trial Balance 2008
9c Government Wide Statement of Net Assets 2008 with notes
9c Government Wide Statement of Activities 2008
9c Governmental Funds Balance Sheet 2008 with reconciliation
9c Governmental Funds Stmt Revenues, Expenditures with reconciliation
9c Proprietary Funds Statement of Net Assets 2008
9c Proprietary Funds Statement of Revenues, Expenses & Net Assets
9c Proprietary Funds Statement of Cash Flows 2008 |
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10 |
SKIP performing an Analysis of Financial Condition |
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11 |
Audit Report |
ADDITIONAL INSTRUCTIONS FOR COMPLETING CITY OF SMITHVILLE
You will print a set of instructions and the actual assignment once you have loaded the Smithville software. Please be sure to read it closely and slowly when you are working on the project. I am including these additional hints to speed up the process of journalizing and posting.
Chapter 1 - Approximately 1 hour (Without interruptions!)
You cannot load the Smithville software in the campus labs. The temporary storage in those computers is not sufficient to run Smithville. If you do not have a computer, you will need to find a friend or employer who is willing to let you use their computers and printers. It is very easy to uninstall Smithville when you are done and the software should not conflict with other software.
SYSTEM REQUIREMENTS
Besides the CD with the Smithville program, you will need Microsoft Office (Word and Excel) to complete this project. Smithville can only be run on an IBM compatible PC using a Microsoft Windows 98 operating system or higher. You should have 15 mb of free space available to load the software.
INSTALLING THE SOFTWARE
Load the Smithville software by exiting any other applications you are running. Then:
1. Insert the CD in your CD drive and double click on your CD drive icon. The program should start automatically, but if it does not, double click on the program called Setup.exe
2. An introduction screen will appear. Click NEXT
3. A welcome screen will appear. Click NEXT
4. The software agreement and the license agreement will appear. Choose "I accept the terms" and click NEXT
5. The next screen states where Smithville will be installed. Click NEXT
When you have completed the project later in the semester, you can uninstall the program by opening the control panel of your Windows operating system, double clicking on ADD/REMOVE PROGRAMS, Select City of Smithville and double click REMOVE.
BACKUP YOUR WORK
Be sure to backup your Smithville work to a USB drive or floppy disk even though you are keeping the original on your computer. Should a catastrophe occur, you can reload the original program again from the CD, but without a backup of the work you have already done, you will have to start the project over to be able to produce the final financial statements. I would recommend backing up to a file called "Smith" with the current date and keep previous versions of the backup (Smith Oct15).
PRINT THE INSTRUCTIONS FOR CASE B
Open the Windows Start menu. Go to Programs and find City of Smithville. Double click on the Smithville Instructions (Word Format). This should open Microsoft Word with the instructions displayed. Print the 45 pages that contain the instructions and the assignment for CASE B.
Read and experiment with the general operating instructions that begin on page 5 through page 12.
Pages 8 - 9 explain how to make corrections when you detect errors in your journal entries. You can make corrections before or after you post entries. You are expected to hand in a project that is completely correct as you have access to the solutions manuals. DO NOT use Student Assistance in the File menu or all your entries in the fund you have open will be erased.
Page 12 explains how to print reports. If you do not have a printer or your printer is down, you can print the Excel or Word statements you create and the trial balances you exported in the campus labs. You cannot print the journals and ledgers in the proper format in the labs so make every effort to find a friend or classmate who may loan you a printer. All parts of the project must be handed in to receive credit for the project.
MENUS IN SMITHVILLE
Each time you open CASE B by clicking on the Smithville icon, you will see three buttons: Create New Project, Open Existing Project, and Open Instructions. You will use Create New Project the first time you work on Case B, but after that you should use the Open Existing Project button.
>The main menu line of Smithville contains the following selections:
File, Edit, View, Reports, Help.
>File contains the selections: New, Open, Close, Save, Save As, Export, Printer Setup, Student Assistance, and Exit. AVOID the Student Assistance selection.
>Export contains: Pre-Closing Trial Balance to Excel, Post-Closing Trial Balance to Excel, Pre-Closing Operating Statement Account Balance. You DO NOT need to export the Trial Balances to Excel to print them. Use the Report selection to print trial balances.
>Edit contains the Unpost menu for making corrections.
>View selections are Posted Transaction in General Journal, Toolbar, and Status Bar
>Reports contains the selections: Chart of Accounts, General Journal, Ledgers, and Trial Balance. Trial Balances contains both the Pre-closing and Post-closing Trial Balances. For the General Fund only, Ledgers contains: General Ledger, Revenue Subsidiary Ledger, Approp/Expend/Encumb Subsidiary Ledgers. For all other funds, Ledgers contains only the General Ledger
You may want to print a Chart of Accounts for each Fund as you start that section of Case B so you will know what your account selections are.
Chapter 2 Approximately 1 hour
Be sure to note the year as 2007 as this affects your financial statements.
Also, when selecting account numbers be sure to notice there is a difference between delinquent and current taxes.
There are two Post-closing Trial Balances to print: one for the General Fund and one for Governmental Activities.
Chapter 3 Approximately 1 hour
3a Change your year to 2008
To record a budget see page 81 of your textbook. The budget entry to fund balance should be a $32,900 debit.
No entries to Governmental Activities General Journal
Chapter 4 Approximately 6-7 hours
Change your year to 2008
4a1 will be recorded in the fund and Governmental Activities. Be sure to record 2008 as the year in Governmental Activities. Tax levy entries are on page 116 of your textbook. The entire levy is $1,120,000.
4a2 To record an encumbrance and reserve for encumbrance see page 109 in your textbook. Encumbrances are not recorded in Governmental Activities General Journal.
4a3 see page 117 in textbook
4a4 see pages 117, 118, 114 in textbook. In the Detail Transaction Description note as Received in Cash.
4a5 pages 110 in textbook. Expenditures detail is goods received. Encumbrances detail is purchase order. Note the amount of Public Works expenditures: $18,500 is Equipment (vehicle) and $134,330 is Expenditures. NOTE: When you compare your entries to the Solutions Manual Appropriation Ledger you should have the account Purchase Order instead of Elimination whenever you reverse an Encumbrance.
4a6 page 112 in textbook. Detail is payroll. Do not book net payroll to vouchers payable but to cash. Total net should be $1,936,810.
4a7 page 113 in textbook. Detail for journal entry is for General Fund since this is Due to State (retirement) and Due to Federal (FICA). Detail for each department is Payroll.
4a8 page 111, 120-121 in textbook. Tax anticipation items are Utilities & Other in Detail.
4a9 is like page 128 in textbook. Due from State Government
4a10 page 117 in textbook. To get balance of taxes for reclassification, click left tab for General Fund Ledgers and look at amounts for Taxes Receivable Current and Estimated Uncollectible Taxes Current.
4a11 page 117 in textbook. Detail is Accrued Revenue.
4a12 page 119 in textbook.
4a13 page 127 in textbook. Detail is Budget Amendment. Fund Balance is $540,000
4a14 page 127-128 in textbook. Expenditure General Government with Detail of Utilities & Other. Credit is Cash of $8,000 and $4,000 is Due to Other Fund.
4a15 page 124 in textbook. Credit Expenditures General Government and Detail is Utilities & Other.
4a16 page 133 in textbook. Fund balance debit of $64,681
4b - e Print the Excel worksheets. Pages 134-137 in textbook.
Chapter 5 Approximately 3- 4 hours
Choose Street Improvement Fund and make year 2008
5b1 page 192-193, 118 in textbook. As a Receivable.
5b2 page 182 #11b,c in textbook. Government Activities is Construction in Progress
5b3 page 182 #11b,c in textbook.
5b4 page 180 #3 in textbook.
5b5 page 181 #8 in textbook. Requires two entries to fund Second is buying the investment. Do not record the premium in the Street Improvement Fund, just the par. Premium will be recorded in Government Activities. Premium is $24,000. Expenditure Interest on LT Debt is $21,000.
5b6 page 182 #9 in textbook.
5b7 page 187, 180 #5 in textbook. This entry was encumbered previously. Four percent retention is $16,000.
5b8 page 180 #5b,c in textbook. Liability is Judgements Payable
5b9 page 180 #5b,c in textbook
5b10 page 180 in textbook.
5b11 page 180 #3 in textbook
5b12 Collect cash of $618,000, retire investment. Interest is revenue in the General ledger and is General Revenue Investment Earnings in Government Activities
5b13 go to Ledgers to get amount due on any payables (vouchers and judgements) and one expenditure. Cash paid is $42,380.
5b14 two entries. Reverse 5b1. Buy investments.
5b15 is like 5b7. Encumbered previously. Retained percentage is $32,000.
5b16 page 182 #9 in textbook
5b17 General Fund will have Interest receivable. Government Activities will have General Revenue Investments.
5b18 page 133 in textbook. Use ledgers to get amounts. Fund Balance will have a debit of $1,343,630. Bond Proceeds are an inflow (other financing source). There are two projects with expenditures and encumbrances. Be sure to check (Ö ) that this is a closing entry.
5c - e pages 14, 16 in textbook.
Chapter 6 Approximately 6 hours
Use Debt Service Fund and make year 2008.
6b1 page 127 in textbook. Fund Balance credit $3,000.
6b2 from 5b5 total is $45,000. Revenue Interest is $21,000 and OFS premium is $24,000
6b3 page 221 #4 in textbook. Expenditure for Bond Interest is $42,000. Government Activities Expense is $41,593 and Premium is $407.
6b4 page 223 # 12 in textbook. Government Activities only. Expense is $41,186. Premium is $814. Total Accrued Interest Payable is $42,000.
6b5 Use ledger. Page 133 in textbook. Fund balance will be zero. Be sure to close budget and actual accounts.
6c Prepare Trial Balances for 2008
6e change year to 2009. Read notes in instructions.
6e1 page 220 #1 in textbook. Fund Balance credit $181,000.
6e2 page 221 #3 in textbook. Cash comes FROM General fund.
6e3 page 221 #4 in textbook.
6e4 three entries required. 1st accrue premium, interest, investment earnings, fund balance is a credit of $42,000. 2nd cash received is $40,000. 3rd transfer cash to Investment Pool page 314 in textbook
6e5 page 221 #3 of textbook. Two entries page 314 of textbook.
6e6 page 221 #4a in textbook
6e7 page 218 #4b in textbook. Two entries. Investment income is $8,987 and Change in Fair Value is $3,103.
6e8 Use ledger. Page 223 #13 in textbook. Fund Balance credit $5,090. Close both budget and actual accounts. There should be five additional credits besides the fund balance and six debits.
6f - h pages 229-230 in textbook.
Chapter 7 Approximately 4 hours
You will not make entries for this chapter in Government Activities General Journal.
7a make year 2007. Buildings at gross $455,000. Equipment at gross $75,000
7b make year 2008.
7b2 page 275 #3 in textbook
7b3 page 275 #5 in textbook
7b4 page 275 #4 in textbook
7b5 payroll accrual was $50,300 in 2007 balance sheet making expense $738,300.
7b6 page 278 #14 in textbook
7b7 book an expense for accrued salaries. Book an expense and reduce inventory for materials used
7b8 debit Provision for Credit Allowance
7b9 Interest is $3,375.
7b10 page 286 in textbook
7b11 Building depreciation is $28,000 and Equipment depreciation is $20,000 for a total of $48,000.
7b12 Expense and page 278 #15 in textbook
7c use ledger. Page 279 in textbook. First entry will close inflows and outflows to Net Assets Unrestricted (debit $35,245) . One inflow only (Charge for services) and six expenses (include provision for closure costs). Second entry closes difference between 2007 and 2008 balance in Net Assets Invested in Capital Assets Net of Related Debt to Net Assets Unrestricted (For 2008, add land, building and equipment, subtract depreciation on building and equipment, subtract revenue anticipation notes current and long term to get $477,000) (2007 balance was $500,000) Difference is a reduction of $23,000 (debit) from Net Asset Unrestricted.
7d - f pages 280-282 in textbook.
Chapter 8 Approximately 5 hours
Do not record Chapter 8 entries in Government Activities General Journal.
8a Make year 2008.
8a1 page 315 #1b in textbook. Credit Due to Debt Service $40,000 and Addition- Deposits $400,000.
8a2 Asset is recorded in the fund
8a3 page 315 #1b in textbook. From Debt Service
8a4 page 318 in textbook. Interest receivable $4,000. Undistributed earnings $8,000. Two entries. Buy an investment.
8a5 page 320 #7 in textbook
8a6 two entries. Credit Additions - deposits in pool. Buy investment of $80,000
8a7 page 320 #7 in textbook. Undistributed earnings is $19,759.
8a8 page 319 in textbook. From 8a1 values were $396,000, added $185,000 for a total of $581,000. Change to fair value is an increase of $10,000.
8a9 Two entries. Sell investments and receive cash of $77,250. Deduction- Withdrawal of cash.
8a10 page 320 in textbook. Do 8c and 8b first.
8c Debt Service = $40,000 + $176,000 = $216,000
CSD = $400,000 + $80,000 = $480,000
Therefore percentage is a ratio of $696,000 or DS 31.03% and CSD 68.97%
Entry calculations for 8a10 are:
Earnings in pool were $28,959 Thus 31.03% or $8,987 to DS and 68.97% or $19,972 to CSD
Fair value change was $10,000 Thus 31.03 or $3,103 to DS and 68.97% or $6,897 to CSD
8c after withdrawal. From above DS would have $228,091 and CSD would have $506,868. CSD withdrew $75,000 reducing it to $431,868 and changing the ratio of holdings.
8b Use ledger. Page 322 in textbook. Close Additions (three) and Deductions (one) to Net Assets Held for Depositors which is $431,869.
8e - f page 322-323 n textbook.
Chapter 9 Approximately 6 hours
9a page 366 in textbook. Allocation of building depreciation based on floor space is:
General Government $16,480
Police $11,536
Fire $13,184
Building Safety $4,120
Public Works $18,128
Health/Welfare $8,240
Parks/Recreation $10,712
Total $82,400
9b pages 368-369 in textbook. Requires several entries. Use ledger.
First close Program and General Revenues (nine) and expenses (ten) to Net Assets Unrestricted (Credit $173,465)
Second close Net Assets Unrestricted for $3,000 that is Net Assets for Debt Service
Third close Net Assets Unrestricted attributable to Net Assets restricted for Capital Projects. This amount is the Fund Balance from the Street Improvement Fund Balance Sheet of $456,370.
Fourth close change in Net Assets invested in Capital Assets Net of Related Debt between 2007 and 2008 to Net Assets Unrestricted. See the Pre-closing Trial Balance for 2008 for the Balance from 2007 of $15,522,500. For 2008, go to the ledger and add capital assets, subtract depreciation, add Construction work in progress, subtract serial bonds payable and premium on bonds payable. Difference between 2007 and 2008 should be $216,839.
9c see pages 371, 373-375, 11-12, 14-20, 22-25 in textbook for statements. DO NOT follow the instructions mid-way through the paragraph that say "(Since the Solid Waste Disposal Fund is the only…accountable as component units.) You should put the Solid Waste Disposal Fund in a single column presentation because the statements should contain several different funds. See Rule 9.
NOTE: The Solutions Manual has errors in the Statement of Activities for the Total column under General Revenues in the lower section of the statement. The Total column should equal the amounts recorded for the three types of Taxes, Investment Earnings, Miscellaneous, and Total general revenues under the Governmental Activities column. The Total Change in net assets is $208,710. Also, under Capital Grants and Contributions there should be a Total primary government amount of $500,000.
The Reconciliation between the Governmental Funds Balance Sheet and the Statement of Net Assets should start with the total fund balance from the Balance Sheet and end with the Governmental Activities Net Assets from the Statement of Net Assets. There are three figures to get to that Net Asset figure: Capital assets = total assets + accumulated depreciation + construction in progress; Long-term liabilities = 7% serial bond + premium on the bond; accrued interest on bonds payable
The Reconciliation between the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, and the Statement of Activities should start with the change in fund balances in the Statement of Revenues, Expenditures and end with the change in net assets in the Statement of Activities. There are four figures to get to that Change in Net Asset figure: Capital Outlay = three Street Improvement Fund construction expenditures + General Fund equipment from 4a5; accumulated depreciation; bond proceeds = 7% serial bond + premium on the bond; accrued interest on bonds payable
SKIP CHAPTER 10
Chapter 11 Approximately 1 hour
Page 436 in textbook. Audit report wording is "carved in stone" so do not paraphrase the report.
