Government Wide FS/Reconciliation (F10 M6)

Question 1

Reconciliation of Governmental funds BS to Government wide statement of net position

Answer 1

• BS reconciliation
• items from previous years
• Add capital assets
• subtract related accumulated depreciation
• subtract non-current liabilities
• add internal service fund net position

Question 2

BS Reconciliation - C (Can)

Answer 2

Add capital assets purchased in prior years

Dr. Capital assets
Cr. Net position

Question 3

BS Reconciliation - A (cAn)

Answer 3

subtract accumulated depreciation

Dr. Net position
Cr. Accumulated depreciation

Question 4

BS Reconciliation - N (caN)

Answer 4

subtract noncurrent liabilities (LTD)

Dr. Net position
Cr. long term liabilities

Question 5

IS & BS Reconciliation - C (Cpas ride or sit)

Answer 5

add capital outlay expenditures

Dr. capital assets
Cr. capital expenditure

Question 6

IS & BS Reconciliation - P (cPas ride or sit)

Answer 6

add Principal payments (interest paid is a period expense, interest exp, so it doesn’t need to be added back)

Dr. Long term debt
Cr. principal payments expenditure

Question 7

IS & BS Reconciliation - A (cpAs ride or sit)

Answer 7

subtract asset disposal adjustment (nbv of asset disposed to recognize only the gain)

Dr. other financing sources
Dr. accumulated dep
Cr. asset (at cost)
Cr. gain on disposal

Question 8

IS & BS Reconciliation - S (cpaS ride or sit)

Answer 8

subtract debt proceeds shown as other financing sources

Dr. other financing sources
Cr. long term debt

Question 9

IS & BS Reconciliation - R (cpas Ride or sit)

Answer 9

add increase in accrued revenue
subtract decrease in accrued revenue

Dr. deferred inflows
Cr. tax revenue

Question 10

IS & BS Reconciliation - IDE (cpas rIDE or sit)

Answer 10

subtract interest and depreciation expense

Dr. Interest expense
Cr. accrued interest payable

Dr. depreciation expense
Cr. accumulated depreciation

Question 11

IS & BS Reconciliation - S (cpas ride or Sit)

Answer 11

record internal service fund activity
add profits

Dr. assets
Cr. liabilities 
Cr. internal service fund net position (beg)
Cr. revenue (charges for services)
Dr. Expenses 

Dr. revenue (charges for services)
Cr. expenses
Cr. profit

Question 12

IS & BS Reconciliation - IT (cpaS ride or sIT)

Answer 12

eliminate interfund accounts (governmental BS)
Dr. due to other funds
Cr. due from other funds

eliminate interfund transfers (governmental IS)
Dr. transfers in
Cr. transfers out

Question 13

reconciliation change in net position of governmental activities (IS)

Answer 13

net change in fund balance
\+ capital outlay
\+ principal payments on noncurrent debt
- asset disposal (NBV)
- debt proceeds (other financing sources)
\+ revenue (measurable but unavailable)
- interest expense
- depreciation expense
\+ internal service fund net revenue

Question 14

reconciliation of government wide statement of net position (BS)

Answer 14

ending fund balance
\+ capital assets
- accumulated dep
- non current liabilities 
- deferred inflow
- accrued interest payable
\+ internal service fund net position