Riviera Township reported the following data for its governmental activities for

Question

Riviera Township reported the following data for its governmental activities for the year ended June 30, 2009: Cash: 1,000,000 Receivables: 300,000 Capital assets: 8,500,000 Acc Dep: 1,200,000 AP: 400,000 LT Liabilities: 4,000,000 Additional information available is as follows: All of the long-term debt was used to acquire capital assets. Cash of $475,000 is restricted for debt service. Based on the preceding information, on the statement of net assets prepared at June 30, 2009, what amount should be reported for total net assets?

Explanation / Answer

Unrestricted Total Net assets= Total assets- Total liabilities- restricted cash

              = cash+ receivables+ capital assets- acc dep- accounts payable- long term liabilities- restricted cash for debt service

             = 1,000,000+ 300,000+ 8,500,000- 1,200,000- 400,000- 4,000,000- 475,000

            = $ 3,725,000

             =

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