Graded Problem Chapter 11
Problem # 1
Durham Township has two component units that it is required to include in its reporting entity. The first, a housing authority, maintains two funds: a general fund and a special revenue fund. The second, a transportation authority, has but one fund: an enterprise fund. The township itself has only a general fund.
The fund balance sheets, in highly condensed form, of all three entities are shown below (in millions). Also presented, as appropriate, are capital assets and long-term obligations that are not recognized on the fund statements, since the statements are on a modified accrual basis.
1. Assume that both component units qualify for discretepresentation. On its government-wide statements, thetownship elects to combine the two units into a singlecolumn.
a. Prepare a government-wide statement of net assets(on a full accrual basis) that presents both the township and its component units.
b. Commentonthesignificanceofthecolumninwhichthe two component units are presented
2. Suppose instead that the town is required to blend thetwo component units.
a. Prepare a government-wide statement of net assets.Be sure to show the transportation authority as business-type activity.
b. If the township were to prepare fund statements,how would it report the housing authority’s specialrevenue fund? How would it report its general fund?
Problem # 2
The following data were drawn from the CAFRs oftwo southernNew Hampshire cities (all dollar amounts are inthousands):
1. Based on the limited data provided, which city has thegreater resources upon which to draw?
2. Which city imposes the greater tax burden on its population based on?
a. Per capita total general-fund taxes?
b. Per capita propertytaxes?
c. Tax rate (i.e., property taxes as a percent of propertyvalue)?
3. Which city receives a greater amount of assistance fromother governments?
a. As a percentage of its total general-fund revenues?
b. Per capita?