Assume that the City of Coyote has already produced itsfinancial statements for December 31, 2015, and the year thenended. The city’s General Fund was only for education and parks.Its Capital Projects Funds worked with each of these functions attimes during the current year. The city also had established anEnterprise Fund to account for its art museum.

	The government-wide financial statements indicatedthe following figures:
	•	Education reported net expenses of $698,000.
	•	Parks reported net expenses of $113,000.
	•	Art museum reported net revenues of $59,250.
	•	General government revenues for the year were $977,750 with anoverall increase in the city’s net position of $226,000.
	The fund financial statements indicated thefollowing for the entire year:
	•	The General Fund reported a $47,750 increase in its fundbalance.
	•	The Capital Projects Fund reported a $45,500 increase in itsfund balance.
	•	The Enterprise Fund reported a $61,500 increase in its netposition.

  

The CPA firm of Abernethy and Chapman has been asked to reviewseveral transactions that occurred during 2015 and indicate how tocorrect any erroneous reporting and the impact of each error. Vieweach of the following situations as independent.

An art display set up for the City of Coyote was recorded withinthe General Fund and generated revenues of $10,750 but hadexpenditures of $56,050 ($18,250 in expenses and $37,800 to buyland for the display). The CPA firm has determined that thisprogram should have been recorded as an Enterprise Fund activitybecause it was offered in association with the art museum.

a.	Based on the information provided above, what was the correctchange in the fund balance for the General Fund for 2015?

       

b.	What was the correct overall change in the city’s net positionon the government-wide financial statements?

       

c.	What was the correct change in the net position of theEnterprise Fund on the fund financial statements?