Statement of Revenues, Expenses, and Changes in Fund Net Assets
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The City of San Jominz received a $500,000 federal grant to acquire several buses to be used in its public transit system. The City paid $400,000 to acquire several buses. At year-end, $100,000 of the grant had not yet been used. During the year total depreciation on the buses was $40,000. Revenues for the public system were $600,000, operating expenses (other than depreciation) were $470,000. Assuming the Public Transit Proprietary Fund began the year with Unrestricted net assets of $420,000, in order to answer the test question you will need to prepare the following for the Public Transit Enterprise Fund.
a) Statement of Revenues, Expenses, and Changes in Fund Net Assets.
b) Net Asset section of the Balance Sheet. (Some of this answer is given).
9. The unrestricted net assets at the end of the year is:
a) 100,000
b) 470,000
c) 550,000
d) 1,010,000
10. The total net assets at the end of the year is:
a) 100,000
b) 470,000
c) 550,000
d) 1,010,000
11. In accounting for permanent funds only the income can be spent; the principal must be preserved intact.
a) This statement is correct
b) This statement is not correct.
See attached for worksheet.
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Solution Summary
This solution provides answers to questions regarding net assets and accounting for permanent funds.
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9. The unrestricted net assets at the end of the year are:
a) 100,000
b) 470,000
c) 550,000
d) 1,010,000
As per attached worksheet unrestricted net assets are c) 550,000
10. The total net ...
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