The following information relates to the Town of Johnsonville governmental funds
ID: 2579433 • Letter: T
Question
The following information relates to the Town of Johnsonville governmental funds for the fiscal years ending 9/30/16 and 9/30/17.
Total change in fund balance for all governmental funds at 9/30/17 $ 100,000
The following transactions occurred during the year related to governmental funds and government-type activities.
General obligation bonds of $10,000,000 were issued on 11/1/16 at 102 the proceeds of which were used to purchase park land on 12/15/16. All proceeds from the issuance of the bonds were deposited to the General Fund.
An additional $350,000 of general capital assets was purchased during the year.
Amounts paid on outstanding general obligation bonds were $1,000,000 for principal and $300,000 for interest.
Depreciation expense for general capital assets for the year ending 9/30/17 is $3,500,000.
At 9/30/17, $100,000 of property taxes receivable was expected to be collected in the spring of 2018.
QUESTION What is the total change in net position for GOVERNMENTAL ACTIVITIES for the year ending 9/30/17?
Explanation / Answer
CALCUATION OF CHANGE IN NET POSITION FOR GOVERNMENTAL ACTIVITIES:
New issue of general obligation bonds $ 10,000,000
Purchase of capital assets ($ 10,000,000)
Purchase of general capital assets ($ 350,000)
Depreciation expense ($ 3,500,000)
Payment on outstanding bonds ($ 1,300,000)
(principal & interest)
Property taxes receivable $100,000
Change in net position for the year ($ 5,050,000)
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