The newly created State Recreation District established thefollowing funds, each of which is a separate fiscal and accountingentity(general fund , debt service fund and capital project fund.Asummary of the district’s first?year transactions follows (alldollar amounts in millions).
1. It levies taxes of $37000, of which it collects $31000. Itexpects to collect the remaining shortly after year?end.
2. It incurs $16000 in general operating expenditures, ofwhich it pays 8000.
3. It issues long?term bonds of $8000. The bonds must be usedto finance the acquisition of recreational facilities(equipment).
4. The district acquires $6000 of recreational facilitiesusing the resources available in the capital projects fund. usefullife 10 years
5. The district transfers $2400 from the general fund to thefund specially created to account for resources restricted for debtservice.
6. The debt service fund paid the first installment on bonds2200 which includes 200 for interest and 2000 for theprincipal
7. The repair service (ISF) acquires $4000 of equipment,giving a long?term note in exchange (useful life of equipment 10years).
8. The repair service bills the general fund for $3000 andcollects 2900, remaining on account. The (ISF) incurs cashoperating expenses of $2700 and recognizes depreciation ONequipment.
Required:
1. Prepare a government?wide statement of activities(statement of revenues and expenses) ?
2. Prepare a government?wide statement of net position(balance sheet) ?
