An incomplete operating statement conversion worksheet is provided below [in Excel file Ch14P-1] for the City of Walden Creek for FY 20X7.
Additional information:
1. Depreciation Expense for the year was:
a. Buildings 10,000
b. Improvements Other Than Buildings 6,000
c. Furniture and Equipment 4,000
d. Infrastructure 15,000
Except for infrastructure, which is charged to the Highways and Streets function, depreciation is allocated as follows:
• General Government 40%
• Public Safety 40%
• Highways and Streets 20%
2. All capital outlay expenditures were capitalized except for $30,000 in asset purchases for the General Government that did not meet the capitalization threshold.
3. Deferred Revenues were $7,000 at the end of FY 20X6, $10,000 at the end of FY 20X7.
4. Interest Payable at the end of FY 20X6 was $4,000. At the end of FY 20X7 it was $3,000.
5. A vehicle with a net book value of $4,500 was sold for $2,000 during FY 20X7.
6. Long-term compensated absences for the government increased $8,000 during the year. This increase was allocated to the functions at the same rate as depreciation.
Requirement: Complete the operating statement conversion worksheet.
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