1. Lecture
Chapter 14

2. one worksheet approach
Chapter 14 advances past the format of the Government-Wide financial statements to the actual
construction of them.
one worksheet approach
Best way to learn, is by doing an example.

3. REQUIRED: Prepare a conversion worksheet for Tierney County to derive the governmental
activities information to be reported in the county’s government-wide statement of net assets
and statement of activities for 20X5.
Step 1
ENTER THE PRECLOSING TRIAL BALANCE INFORMATION FOR TIERNEY COUNTY
GOVERNMENTAL FUNDS INTO THE WORKSHEET.
This is done for you already on your handout.

4. PAGE ONE OF WORKSHEET

5. PAGE TWO OF WORKSHEET
BALANCES AT $22,860,075
==========

6. Step 2 ENTER IN THE GCA AND GLTL INFORMATION DIRECTLY BELOW THE
PRE-CLOSING TRIAL BALANCE INFORMATION.
SHOW A SEPARATE BALANCING FIGURE FOR THIS
INFORMATION.
This is also done for you already on your handout.

7. THIS BALANCES AT $36,100,575

8. Step 3 NOW ENTER INTO WORKSHEET
Reclassify capital outlay expenditures as capital assets
(2) are listed on the pre-closing trial balance: First page CAPITAL OUTLAY EXPENDITURES
For construction………….. $8,890,000
For equipment…………… ,700
Entry posted on worksheet to CONVERT.
Construction-in-progress…….. $8,890,000
Machinery & Equipment…… ,700
Construction expenditures………… $8,890,000
Equipment expenditures…………… ,700 1
NOTE: These entries ARE NOT REALLY MADE in any journal/ledger.
They are just WORKSHEET entries made to adjust governmental funds
to GOVERNMENT-WIDE accounts.
NOW ENTER INTO WORKSHEET

9. Step 3 1 Construction-in-progress…….. $8,890,000
Machinery & Equipment…… ,700
Construction expenditures………… $8,890,000
Equipment expenditures…………… ,700
PAGE TWO OF WORKSHEET 1
Step 3
GCA
&
GLTL
NOW RECORD THE CREDITS ON THE 1ST PAGE THE WORKSHEET.

10. Step 3 1 Construction-in-progress…….. $8,890,000
PAGE ONE OF WORKSHEET
Construction-in-progress…….. $8,890,000
Machinery & Equipment…… ,700
Construction expenditures………… $8,890,000
Equipment expenditures…………… ,700 1
Step 3

11. Eliminate GCA sale proceeds and record a gain on
Step 4
Eliminate GCA sale proceeds and record a gain on
the capital asset sale
$175,000 is listed as a proceed from the Sale of GCA on pre-closing trial balance (PCTB)
top of page 2 of worksheet.
Need to also know:
The capital asset sold was for equipment which cost $500,000, and had accumulated
depreciation at the January 1 sale date of $400,000.
Entry made for governmental accounting
Cash……..$175,000
Proceeds from sale of capital equipment………$175,000
DID
Entry which would have been made for government-wide (full-accrual)
Cash…….$175,000
Acc/Dep.
mach&ept ,000
Equipment……..$500,000
Gain on sale
of equipment… $ 75,000
Entry posted to worksheet to CONVERT.
Acc/Dep
mach & eqt . $400,000
Proceeds… ,000
Equipment………$500,000
Gain………………. 75,000 2
FIX
SHOULD
NOW POST TO WORKSHEET

12. Step 4 2 Acc/Dep mach & eqt . $400,000 Proceeds…. 175,000
Equipment………$500,000
Gain………………. 75,000 2
PAGE TWO OF WORKSHEET
Step 4
GCA
&
GLTL

13. Step 5 Record Depreciation
Depreciation expense is of course, not recorded for governmental funds.
Additional information:
Depreciation expense on buildings and on machinery and equipment is associated with
functions as follows:
General government…………. 10%
Public Safety…………………. 50%
Highways and Streets………. 25%
Heath and sanitation………. 10%
Other………………………….. 5%
Additionally:
The county depreciates equipment over 5 years, buildings over 20 years, and streets and
roads over 30 years. Assume zero salvage values.

14. Step 5 Record Depreciation From PCTB: Buildings……… $4,375,000
= $218,750 depreciation expense for 20X5.
20 yrs (given)
wait to post to worksheet
until all depreciation is
calculated.
Depreciation expense on buildings and on machinery and equipment is associated with
functions as follows:
General government…………. 10%
Public Safety…………………. 50%
Highways and Streets………. 25%
Heath and sanitation………. 10%
Other………………………….. 5%
x 218,750 = $21,875
x 218,750 = $109,375
x 218,750 = $54,687
* rounding
x 218,750 = $10,938

15. Step 5 Record Depreciation Depreciation expense-Gen Gov…$21,875
Depreciation expense-Pub Saf…..109,375
Depreciation expense-Highways ,687
Health & Sanitation……………… ,875
Other……………………………… ,938
Accumulated Depreciation- Building………$218,750
Step 5
Record Depreciation
The county depreciates equipment over 5 years, buildings over 20 years, and streets and
roads over 30 years. Assume zero salvage values.
Depreciation expense-Gen Gov…$32,074
Depreciation expense-Pub Saf…..160,370
Depreciation expense-Highways ,186
Health & Sanitation……………… ,074
Other……………………………… ,036
Accumulated Depreciation- Machinery & Equipment………$320,740
These are posted on
worksheet
as summations of both
expenses but the
accumulated depreciat.
for mach & buildings
are posted separately.
From PCTB:
Mach & Ept……… ($1,400,000 beg + $203,700 adj(1))
= $320,740 depreciation expense for 20X5.
5 years = $320,740
The $500,000 sold should be subtracted before
depreciating but the authors of problem didn’t do that.
Depreciation expense on buildings and on machinery and equipment is associated with
functions as follows:
General government…………. 10%
Public Safety…………………. 50%
Highways and Streets………. 25%
Heath and sanitation………. 10%
Other………………………….. 5%
PLUS
SUM
$53,949
269,745
134,873
53,949
26,974
x 320,740 = $32,074
x 320,740 = $160,370
x 320,740 = $ 80,186
*rounding
x 320,740 = $16,036
218,750 = $21,875
218,750 = $109,375
218,750 = $54,687
*rounding
218,750 = $10,938

16. Step 5 3a 3a PAGE ONE OF WORKSHEET $32,074 + $21,875 = $53,949
Depreciation expense-Gen Gov…$32,074
Depreciation expense-Pub Saf…..160,370
Depreciation expense-Highways ,186
Health & Sanitation……………… ,074
Other……………………………… ,036
Accumulated Depreciation- Machinery & Equipment………$320,740 3a
Step 5
Depreciation expense-Gen Gov…$21,875
Depreciation expense-Pub Saf…..109,375
Depreciation expense-Highways ,687
Health & Sanitation……………… ,875
Other……………………………… ,938
Accumulated Depreciation- Building………$218,750 3a
$32,074 + $21,875 = $53,949

17. Step 5 3a 3a PAGE ONE OF WORKSHEET $160,370 + $109,375 = $269,745
Depreciation expense-Gen Gov…$32,074
Depreciation expense-Pub Saf…..160,370
Depreciation expense-Highways ,186
Health & Sanitation……………… ,074
Other……………………………… ,036
Accumulated Depreciation- Machinery & Equipment………$320,074 3a
Step 5
Depreciation expense-Gen Gov…$21,875
Depreciation expense-Pub Saf…..109,375
Depreciation expense-Highways ,687
Health & Sanitation……………… ,875
Other……………………………… ,938
Accumulated Depreciation- Building………$218,750 3a
$160,370 + $109,375 = $269,745

18. Step 5 3a 3a PAGE ONE OF WORKSHEET $80,186 + $54,687 = $134,873
Depreciation expense-Gen Gov…$32,074
Depreciation expense-Pub Saf…..160,370
Depreciation expense-Highways ,186
Health & Sanitation……………… ,074
Other……………………………… ,036
Accumulated Depreciation- Machinery & Equipment………$320,074 3a
Step 5
Depreciation expense-Gen Gov…$21,875
Depreciation expense-Pub Saf…..109,375
Depreciation expense-Highways ,687
Health & Sanitation……………… ,875
Other……………………………… ,938
Accumulated Depreciation- Building………$218,750 3a
$80,186 + $54,687 = $134,873

19. Step 5 3a 3a PAGE ONE OF WORKSHEET $32,074 + $21,875 =$53,949
Depreciation expense-Gen Gov…$32,074
Depreciation expense-Pub Saf…..160,370
Depreciation expense-Highways ,186
Health & Sanitation……………… ,074
Other……………………………… ,036
Accumulated Depreciation- Machinery & Equipment………$320,074 3a
Step 5
Depreciation expense-Gen Gov…$21,875
Depreciation expense-Pub Saf…..109,375
Depreciation expense-Highways ,687
Health & Sanitation……………… ,875
Other……………………………… ,938
Accumulated Depreciation- Building………$218,750 3a
$32,074 + $21,875 =$53,949

20. Step 5 3a 3a PAGE ONE OF WORKSHEET $16,036 + $10,938 = $26,974
Depreciation expense-Gen Gov…$32,074
Depreciation expense-Pub Saf…..160,370
Depreciation expense-Highways ,186
Health & Sanitation……………… ,074
Other……………………………… ,036
Accumulated Depreciation- Machinery & Equipment………$320,074 3a
Step 5
Depreciation expense-Gen Gov…$21,875
Depreciation expense-Pub Saf…..109,375
Depreciation expense-Highways ,687
Health & Sanitation……………… ,875
Other……………………………… ,938
Accumulated Depreciation- Building………$218,750 3a
$16,036 + $10,938 = $26,974
now record the accumulated depreciations

21. Step 5 3a 3a PAGE TWO OF WORKSHEET GCA & GLTL
Depreciation expense-Gen Gov…$21,875
Depreciation expense-Pub Saf…..109,375
Depreciation expense-Highways ,687
Health & Sanitation……………… ,875
Other……………………………… ,938
Accumulated Depreciation- Building………$218,750 3a
PAGE TWO OF WORKSHEET
Depreciation expense-Gen Gov…$32,074
Depreciation expense-Pub Saf…..160,370
Depreciation expense-Highways ,186
Health & Sanitation……………… ,074
Other……………………………… ,036
Accumulated Depreciation- Machinery & Equipment………$320,740 3a
Step 5
GCA
&
GLTL

22. Step 5 continued Record Depreciation
NOT quite done, still INFRASTRUCTURE ASSETS.
The balance of Streets and Roads is $7,000,000
30 years left = $233,333
Entry to record depreciation of infrastructure
Highways & streets depreciation expense…..$233,333
Accumulated depreciation-infrastructure streets………..$233,333

23. Step 5 continued 3b PAGE ONE OF WORKSHEET now post the credit
Highways & streets depreciation expense…..$233,333
Accumulated depreciation-infrastructure streets………..$233,333 3b
now post the credit

24. Step 5 3b PAGE TWO OF WORKSHEET GCA & GLTL
Highways & streets depreciation expense…..$233,333
Accumulated depreciation-infrastructure streets………..$233,333
PAGE TWO OF WORKSHEET 3b
Step 5
GCA
&
GLTL

25. Reclassify bond proceeds and bond issue costs
Step 6
Reclassify bond proceeds and bond issue costs
Bond issuance occurred at year-end.
THERE ARE TWO BONDS ON THE BOOKS! ONE IS LISTED IN THE GOVERNMENTAL FUNDS
INFO AS BONDS $6.3M AND PREMIUMS $42K. (Bottom page 1) THESE ARE OFS.
THE OTHER ONE IS LISTED IN THE GLTL AS B/P $2.8M, PREM $70K, AND DEF BOND ISSUE COSTS 28k
[This stuff is already at full –accrual and doesn’t need adjusting].
Right now in the PCTB the following accounts are present:
Bonds……………………pg 2……. $6,300,000 (CR)
Bond premiums………pg 2…… ,000 (CR)
Bond issue costs………pg 1… ,000 (DR)
Entry which would be made in govt-wide
Cash………..$6,307,000
Def bond issue
costs………..$ 35,000
Bonds payable…$6,300,000
Premium on b/p…$ 42,000
Entry which was made to record bond issue:
should
Cash……………..….$6,307,000
Bond issue costs…$ ,000
OFS-Bonds…………………$6,300,000
OFS-Bond premiums……..$ ,000
Entry to roll-over into GOVT-WIDE
OFS-Bonds………..$6,300,000
OFS-Bond Prem… $ 42,000
Def bond issue
costs………… $35,000
Bonds payable……..$6,300,000
Premium on b/p….. $ 42,000
Bond issue costs…..$35,000
did
fix

26. Step 6 4 OFS-Bonds………..$6,300,000 OFS-Bond Prem… $ 42,000
Def bond issue
costs………… $35,000
Bonds payable……..$6,300,000
Premium on b/p….. $ 42,000
Bond issue costs…..$35,000 4
BOTTOM OF PAGE ONE OF WORKSHEET
Step 6
GCA
&
GLTL

27. Step 6 4 OFS-Bonds………..$6,300,000 OFS-Bond Prem… $ 42,000
Def bond issue
costs………… $35,000
Bonds payable……..$6,300,000
Premium on b/p….. $ 42,000
Bond issue costs…..$35,000
PAGE TWO OF WORKSHEET 4
Step 6
GCA
&
GLTL
now post the last credit

28. Step 6 continued 4 PAGE ONE OF WORKSHEET OFS-Bonds………..$6,300,000
OFS-Bond Prem… $ 42,000
Def bond issue
costs………… $35,000
Bonds payable……..$6,300,000
Premium on b/p….. $ 42,000
Bond issue costs…..$35,000 4
Step 6 continued

29. Eliminate GLTL retirement expenditures and reduce liability
Step 7
Eliminate GLTL retirement expenditures and reduce liability
Right now the PCTB contains the following:
Bond Principal Retirement $700,000 (DR).
Entry that was made
Entry that would be made in full accrual. govt-w
Bond Principal Retirement expenditure….$700,000
Cash……………………………………$700,000
Bonds payable….$700,000
Cash…………$700,000
Entry to ROLLOVER
Bonds payable……………….…..$ 700,000
Bond Principal Retirement Expenditure…………$700,000

30. Step 7 5 PAGE TWO OF WORKSHEET GCA & GLTL now post the credit
Bonds payable……………….…..$ 700,000
Bond Principal Retirement Expenditure…………$700,000
Step 7 5
GCA
&
GLTL
now post the credit

31. Step 7 5 PAGE ONE OF WORKSHEET Bonds payable……………….…..$ 700,000
Bond Principal Retirement Expenditure…………$700,000 5

32. Record bond premium amortization
Step 8
Record bond premium amortization
The remaining term of the bonds payable with which the premium
($70,000) and bond issue costs ($28,000) are associated is
10 years. Use SL amortization.
THIS IS FOR THE BOND THAT IS ALREADY ESTABLISHED AS A BOND IN THE GLTL
Entry which was made to amortize premium in govt’l funds
NONE
Entry to FIX and rollover to govt-wide
$70,000/10 = $7,000 amortization
Premium on b/p……..$ 7,000
Interest on bonds………$7,000
* Bond issue costs amortized in step 9

33. Step 8 Premium on b/p……..$ 7,000 Interest on bonds………$7,000
(reduces the interest expense)
PAGE TWO OF WORKSHEET 6
Step 8
GCA
&
GLTL
now post the credit

34. Step 8 Premium on b/p……..$ 7,000 Interest on bonds………$7,000
PAGE ONE OF WORKSHEET
Premium on b/p……..$ 7,000
Interest on bonds………$7,000
(reduces the interest expense)
Step 8 6

35. Record bond issue cost amortization
Step 9
Record bond issue cost amortization
The remaining term of the bonds payable with which the premium
($70,000) and bond issue costs ($28,000) are associated is
10 years. Use SL amortization.
$28,000 / 10 = $2,800 amortization.
Interest on bonds……. $2,800
Deferred bond issue costs……..$2,800

36. Step 9 Interest on bonds……. $2,800 Deferred bond issue costs……..$2,800
PAGE ONE OF WORKSHEET
Interest on bonds……. $2,800
Deferred bond issue costs……..$2,800
Step 9 7

37. Step 9 Interest on bonds……. $2,800 Deferred bond issue costs……..$2,8007
PAGE TWO OF WORKSHEET
Step 9
GCA
&
GLTL

38. Step 10 Record accrued interest and adjust beginning
net assets and interest expense.
The accrued interest associated with bonds at 12/31/X5 was $ 99,000.
The January 1, 20X5 balance was $87,500.
$87,500 BOY vs $99,000 EOY = $11,500 increase in accrued interest payable.
This increase should have resulted in this entry for GOVT-WIDE
Interest expense……..$11,500
Accrued interest on bonds (payable)……. $11,500
To record this entry now in adjustments of worksheet
Interest on bonds…….. $11,500
Accrued interest on bonds……$11,500
We also need to pick up the beginning balance of accrued interest because its not currently
present in the governmental accounts.
Net Assets (to reflect past interest expenses)….. $87,500
Accrued interest payable on bonds……………..$87,500

39. Step 10 Interest on bonds…….. $11,500
PAGE ONE OF WORKSHEET
Interest on bonds…….. $11,500
Accrued interest on bonds……$11,500
Step 10 8b
Net Assets (to reflect past interest expenses)….. $87,500
Accrued interest payable on bonds……………..$87,500 8a
now record rest.

40. Step 10 Interest on bonds…….. $11,500
Accrued interest on bonds……$11,500
PAGE TWO OF WORKSHEET 8b
Step 10
Net Assets (to reflect past interest expenses)….. $87,500
Accrued interest payable on bonds……………..$87,500 8a
GCA
&
GLTL

41. Step 11 Adjust claim/adjustments expenses for
decreases in long-term liability for C&J.
The balance of the long-term claims and judgments obligation
at 12/31/20X5 was $200,000. All claims and judgments of the
county are related to health and sanitation.
The PCTB shows the BOY balance is $490,000
$490,000 - $200,000 = $290,000 decrease.
Entry to make to record reduction
Liability for C&J….. $290,000
Health & Sanitation expenditures…..$290,000
Entry that was made.
Health and Sanitation expenditures…. $290,000
Cash…………………………………….$290,000
know this because the long-term liability for C&J came down $290K and
it was all for health/sanitation.
implies that $290K
was treated as an
expenditure while it
should have been treated
as reducing a payable
as cash was paid to
reduce it.
Entry that would have been made in Govt-Wide
Liability for C&J………… $290,000
Cash……………………….$290,000

42. Step 11 Liability for C&J….. $290,000
PAGE TWO OF WORKSHEET
Liability for C&J….. $290,000
Health & Sanitation expenditures…..$290,000
Step 11 9
GCA
&
GLTL
now post credit

43. Step 11 Liability for C&A….. $290,000
PAGE ONE OF WORKSHEET
Liability for C&A….. $290,000
Health & Sanitation expenditures…..$290,000
Step 11 9

44. Step 12 Adjust compensated absences expenses for increase
in long-term liability for compensated absences
The balance of the long-term liability for compensated absences at
12/31/X5, was $425,000. Compensated absence liabilities are
generated equally by the general government, public safety,
streets and roads, and health/sanitation functions.
Beg. Bal is $350,000 vs $425,000 = $75,000 increase. Implies that $75,000 needs to be charged
as an expenditure and the payable increase needs to be recorded.
Entry to record Govt-Wide
$75,000 / 4 = $18,750
CA Expenditure-Gen Gov…. $18,750
CA Expenditure-Pub Safety ,750
CA Expenditure-Streets/Roads..18,750
CA Expenditure- Health/San…. 18,750
CA liability-longterm…………….$75,000

45. Step 12 PAGE ONE OF WORKSHEET CA Expenditure-Gen Gov…. $18,750
CA Expenditure-Pub Safety ,750
CA Expenditure-Streets/Roads..18,750
CA Expenditure- Health/San…. 18,750
CA liability-longterm…………….$75,000 10
Step 12
now post credit

46. Step 12 CA Expenditure-Gen Gov…. $18,750
CA Expenditure-Pub Safety ,750
CA Expenditure-Streets/Roads..18,750
CA Expenditure- Health/San…. 18,750
CA liability-longterm…………….$75,000 10
PAGE TWO OF WORKSHEET
Step 12
GCA
&
GLTL

47. Eliminate deferred tax revenues.
Step 13
Eliminate deferred tax revenues.
The January 1, 20X5 balance of Deferred Tax Revenues was $84,000.
First, take the beginning balance of deferred tax revenue, and give it to net assets
because it should have been recognized as revenue in 20X4.
Deferred Revenues………… $84,000
Net Assets…………………..$84,000
Deferred Revenue has an ending balance of $107,800 which means that
it has grown during 20X5 in the amount of $107,800 - $84,000 = $23,800
Entry to get rid of $23,800 of deferred revenue that increased during the year
because it would be recognized as revenue in 20X5 (not deferred).
Deferred Revenues……….. $23,800
Revenues (Taxes)…………..$23,800

48. Step 13 PAGE ONE OF WORKSHEET 11 Deferred Revenues………… $84,000
Net Assets…………………..$84,000 11
Deferred Revenues……….. $23,800
Revenues (Taxes)…………..$23,800 11
The deferred revenues sum
to $107,800
now post the credit to net assets

49. Step 13 11 Deferred Revenues………… $84,000 Net Assets…………………..$84,000
PAGE TWO OF WORKSHEET
Step 13
GCA
&
GLTL

50. Step 14 Eliminate interfund payables and receivables
between governmental funds.
Just go through the PCTB and eliminate it. There’s only one.
Due to Special Revenue Fund…….. $3,500
Due from General fund… ….$3,500

51. Step 14 PAGE ONE OF WORKSHEET 12
Due to Special Revenue Fund…….. $3,500
Due from General fund… ….$3,500 12
Step 14

52. Eliminate transfers between governmental
Step 15
Eliminate transfers between governmental
funds.
Again, go through the PCTB and find/eliminate them.
Transfers from GF……………..….. $616,000
Transfers from Special Rev Funds $70,000
Transfers to CPF………………….. $56,000
Transfers to DSF…………………. $560,000
Transfers to GF…………………….$ 70,000

53. Step 15 13 Transfers from GF……………..….. $616,000
Transfers from Special Rev Fund.… $70,000
Transfers to CPF………………….. $56,000
Transfers to DSF…………………. $560,000
Transfers to GF…………………….$ 70,000 13
PAGE TWO OF WORKSHEET
Step 15
GCA
&
GLTL

54. Reclassify beginning fund balance as net
Step 16
Reclassify beginning fund balance as net
assets.
Fund Balance…… $695,049
Net assets……….$695,049
not allowed to call it “fund balance” in GOVT-WIDE

55. Step 16 Fund Balance…… $695,049 Net assets……….$695,049
PAGE ONE OF WORKSHEET
Step 16
Fund Balance…… $695,049
Net assets……….$695,049 14
now post credit to NA

56. Step 16 Fund Balance…… $695,049 Net assets……….$695,049
PAGE TWO OF WORKSHEET
Step 16
Fund Balance…… $695,049
Net assets……….$695,049 14
GCA
&
GLTL

57. Worksheet is COMPLETE

58. Statement of Activities For the Year Ended December 31, 20X5
Using the information derived from the worksheet present the
government activities in the government-wide financial statements for Tierney County for 20X5.
Tierney County
Statement of Activities
For the Year Ended December 31, 20X5
Program Revenues Net (Expenses) Revenues and Changes in Net Assets
Primary Government
Charges Operating Governmental Business-Type Total
for Grants and Capital Activities Activities
Functions: Expenses Services Contributions Grnts
Primary gov.
Gov Activities:
Gen Government $347, ($347,099) worksheet GW Lunch Exp DR.
Public Safety ,705, ,500
100,000
(1,161,495)
#7 notes that $100K of $420 worksheet GW Lunch CR is for public safety.
$311,500 (License & Permits) + $133,000 (Fines & Forfeitures) = $444,500. (We’re told they are
public safety in piece of info #4). worksheet GW Lunch CR

59. Statement of Activities For the Year Ended December 31, 20X5
Using the information derived from the worksheet you prepared for P14-5, present the
government activities in the government-wide financial statements for Tierney County for 20X5.
Tierney County
Statement of Activities
For the Year Ended December 31, 20X5
Program Revenues Net (Expenses) Revenues and Changes in Net Assets
Primary Government
Charges Operating Governmental Business-Type Total
for Grants and Capital Activities Activities
Functions: Expenses Services Contributions Grnts
Primary gov.
Gov Activities:
Gen Government $347, ($347,099)
Public Safety ,705, ,500
100,000
(1,161,495)
Highways &
Streets
7,231,000
5,982,344
1,248,656 worksht GW Lunch DR
Health &
Sanitation
(54,901)
actually is
negative
expense
ws GW
(DR)
320,000
374,901
Told its highways &
streets in piece of
info #7 WS GW Lunch CR
rest of $420,000 grant;
told in #7 its highways
and streets ws GW Lunch CR

60. Statement of Activities For the Year Ended December 31, 20X5
Using the information derived from the worksheet you prepared for P14-5, present the
government activities in the government-wide financial statements for Tierney County for 20X5.
Tierney County
Statement of Activities
For the Year Ended December 31, 20X5
Program Revenues Net (Expenses) Revenues and Changes in Net Assets
Primary Government
Charges Operating Governmental Business-Type Total
for Grants and Capital Activities Activities
Functions: Expenses Services Contributions Grnts
Primary gov.
Gov Activities:
Gen Government $347, ($347,099)
Public Safety ,705, ,500
100,000
(1,161,495)
Highways &
Streets
7,231,000
5,982,344
1,248,656
Health &
Sanitation
(54,901)
320,000
374,901
Other , (92,074) ws GW Lunch DR
Interest ,275
(416,275)
$363,775 (interest on bonds) + $52,500 (fiscal agent fees) ws GW Lunch DR

61. Statement of Activities For the Year Ended December 31, 20X5
Using the information derived from the worksheet you prepared for P14-5, present the
government activities in the government-wide financial statements for Tierney County for 20X5.
Tierney County
Statement of Activities
For the Year Ended December 31, 20X5
Program Revenues Net (Expenses) Revenues and Changes in Net Assets
Primary Government
Charges Operating Governmental Business-Type Total
for Grants and Capital Activities Activities
Functions: Expenses Services Contributions Grnts
Primary gov.
Gov Activities:
Gen Government $347, ($347,099)
Public Safety ,705, ,500
100,000
(1,161,495)
Highways &
Streets
7,231,000
5,982,344
1,248,656
Health &
Sanitation
(54,901)
320,000
374,901
Other , (92,074)
Interest ,275
(416,275)
Total government
activities…… $3,755,198 $444, $420, $7,231, $4,340,302

62. Statement of Activities For the Year Ended December 31, 20X5
Using the information derived from the worksheet you prepared for P14-5, present the
government activities in the government-wide financial statements for Tierney County for 20X5.
Tierney County
Statement of Activities
For the Year Ended December 31, 20X5
Program Revenues Net (Expenses) Revenues and Changes in Net Assets
Primary Government
Charges Operating Governmental Business-Type Total
for Grants and Capital Activities Activities
Functions: Expenses Services Contributions Grnts
Total government
activities…… $3,755,198 $444, $420, $7,231, $4,340,302
General Revenues:
Property taxes, levied for
general purposes… $3,418,800 GW lunch CR
Unrestricted grant rev ,500 GW lunch CR
Investment income ,000 GW lunch CR
Other…………… ,000 GW lunch CR
Gain on sale of
capital assets ,000 GW lunch CR toward bottom WS
Transfers from enterprise ,000 GW lunch CR
Total general revenues
and transfers………… $4,531,300
Change in net assets.. 8,871,602 (4,340, ,531,300)
Net Assets-beg……. 2,767,049 (given)
Net assets-end…… $11,638,651

63. Statement of Net Assets
Tierney County
Statement of Net Assets
December 31, 20X5
ASSETS:
Cash………………………………. $1,348,200
Investments…………………….. 7,355,600
Taxes Receivable (net)………… ,500 (189K-38,500)
Interest/penalities Receivable…(net) ,774 (5,250 – 476)
Accounts Receivable…(net)… ,750 (45,500 – 1,750)
Accrued Interest Receivable… ,800
Internal Balances…(to enterprise fund) (11,550) shown with the assets
Inventory of Materials & Supplies ,450
Deferred Bond Issue Costs… ,200
Capital Assets, net:
Land……………………………… ,500
Buildings (net) ………………… ,426,250 (4,375,000 – 2,948,750)
Machinery & Equipment (net) ,960 (1,103,700 – 445,740)
Infrastructure (Streets & Roads)net.. 2,566,667(7,000,000 – 4,433,333)
CIP………………………………… 8,890,000
13,978,377
Total Assets………………… $23,138,101

64. Statement of Net Assets
$1,050 interest/p current debt
+ 99,000 from bond interest
adjustments (bttm worksheet)
Tierney County
Statement of Net Assets
December 31, 20X5
LIABILITIES:
Vouchers payable……… $1,016,400
Accrued sal/wages payable ,500
Contracts/p- Retained % ,000
Interest/p (on current debt) ,050
Def Operat Grnt Rev…… ,500
Def Cap Grnt Rev… ,000
Noncapital Liabilities:
B/P & prem……………… ,505,000
C&J payable…………… ,000
Compen. Absence p… ,000
Due in more than one year… 9,130,000
Total liabilities………… $11,499,450
ASSETS:
Cash………………………………. $1,348,200
Investments…………………….. 7,355,600
Taxes Receivable (net)………… ,500
Interest/penalities Receivable…(net) ,774
Accounts Receivable…(net)… ,750
Accrued Interest Receivable… ,800
Internal Balances…(to enterprise fund) (11,550)
Inventory of Materials & Supplies ,450
Deferred Bond Issue Costs… ,200
Capital Assets, net:
Land……………………………… ,500
Buildings (net) ………………… ,426,250
Machinery & Equipment (net) ,960
Infrastructure (Streets & Roads)net..
CIP………………………………… 8,890,000
13,978,377
Total Assets………………… $23,138,101

65. 1. Invested in Capital Assets, Net of Related Debt
The NET ASSETS are presented in (3) classifications:
1. Invested in Capital Assets, Net of Related Debt
Capital Assets net of accumulated depreciation
$13,978,377
Capital Assets, net:
Land……………………………… ,500
Buildings (net) ………………… ,426,250
Machinery & Equipment (net) ,960
Infrastructure (Streets & Roads)net.. 2,566,667
CIP………………………………… 8,890,000
$13,978,377

66. $6,842,577 1. Invested in Capital Assets, Net of Related Debt
The NET ASSETS are presented in (3) classifications:
1. Invested in Capital Assets, Net of Related Debt
Capital Assets net of accumulated depreciation
$13,978,377
- Bonds payable (less portion equal to unspent proceeds)
(6,846,000)
$8,505,000 B/P (including premium)
1,659,000 (Piece of info #1: Unexpended bond proceeds
at December 31, 20X5 )
$6,846,000
+ Bond issue costs ,200
(These are added because they are an asset and related
to bonds which relate to capital assets).
Contracts payable (350,000)
(contracts would be related to capital assets-assume)
$6,842,577

67. $201,000 2. Restricted Net Assets (after conversions and eliminations)
Piece of info #2 tells us:
Assets include cash and investments restricted for:
Debt service (from which interest is payable)..... $300,000
Special Programs $1,600,000
Debt Service Fund restricted assets $300,000
Debt Service Fund liabilities (99,000)
(this is the accrued interest on non-capital bonds)
$201,000
The only debt discussed as being serviced from the DSF is for the bonds.
Thus only the bond interest is subtracted here.
This is not the end because the special programs are also restricted

68. 2. Restricted Net Assets (after conversions and eliminations)
Piece of info #2 tells us:
Assets include cash and investments restricted for:
Debt service (from which interest is payable)..... $300,000
Special Programs $1,600,000
Special Program restricted assets $1,600,000
- Deferred operating grant revenue (360,500)
$1,239,500
The operating grant would be used to run something
like a special program.

69. 3. Unrestricted net assets (after conversions and eliminations).
General fund unrestricted NA
$5,540,524
Cash $1,348,200
+ Investments 7,355,600
Restricted cash and investments given 1,900,000 (piece of info #2; page 556)
Unexpended proceeds 1,659,000
+ Taxes/Rec ,500 (189,000 – 38,500)
+ Int/Pen Rec ,774 (5,250 – 476) +
A/R ,750
Accrued Int
Rec ,800
Internal Bal (11,550)
Material & Sup 16,450
5,540,524

70. 3. Unrestricted net assets (after conversions and eliminations).
General fund unrestricted NA
$ 5,540,524
- General Fund liabilities
$1,559,950
Vouchers Payable ,016,400
Salaries/wages p ,500
Interest payable (bal) ,050
Def Capital Grant rev ,000 *this is where authors placed this
$1,559,950

71. 3. Unrestricted net assets (after conversions and eliminations).
General fund unrestricted NA
$ 5,540,524
- General Fund liabilities
$1,559,950
-Noncapital asset related C&J payable.. 200,000
-Noncapital asset related CA payable ,000
$3,355,574

72. 3. Unrestricted net assets (after conversions and eliminations).
This can also be PLUGGED since we already know 2/3 of the components and the
total net assets of $11,638,651
NET ASSETS:
Invested in capital assets net of related debt.... $6,842,577
Restricted for:
Debt service $201,000
Special Programs.1,239,500
Unrestricted:
Total Net Assets... $11,638,651
$3,355,574