Please help
(Revenue Classification) Clark County had the following revenue sources in 2011:
General property taxes $8,000,000
Restricted (for education) property taxes 570,000
Meals tax (restricted for economic development and tourism) 200,000
Fines and forfeits 82,000
Federal grant restricted for police protection 132,000
Federal grant restricted for specific general government construction projects for specific functions 600,000
Unrestricted investment income 75,000
Prepare a schedule computing the amount of general revenues and of program revenues that Clark County should report in its government-wide Statement of Activities for the 2011 fiscal year.
To compute the amount of general revenues and program revenues that Clark County should report in its government-wide Statement of Activities for the 2011 fiscal year, we need to understand the classification of these revenue sources.
General Revenue:
General revenue refers to revenue that is not restricted or designated for specific purposes. It is the revenue that the government can use for any lawful purpose.
Program Revenue:
Program revenue refers to revenue that is specifically generated for a particular program or service. It is further classified into three categories: charges for services, operating grants and contributions, and capital grants and contributions.
Now, let's categorize the revenue sources mentioned in the question:
1. General property taxes - This revenue source is not specified as restricted for any particular program. Hence, it should be classified as general revenue.
2. Restricted (for education) property taxes - This revenue source is explicitly restricted for education. Therefore, it should be classified as program revenue - charges for services.
3. Meals tax (restricted for economic development and tourism) - This revenue source is restricted for economic development and tourism. It should be classified as program revenue - charges for services.
4. Fines and forfeits - This revenue source is not specified as restricted for any particular program. Hence, it should be classified as general revenue.
5. Federal grant restricted for police protection - This revenue source is explicitly restricted for police protection. Therefore, it should be classified as program revenue - operating grants and contributions.
6. Federal grant restricted for specific general government construction projects for specific functions - This revenue source is explicitly restricted for general government construction projects. Therefore, it should be classified as program revenue - capital grants and contributions.
7. Unrestricted investment income - This revenue source is not specified as restricted for any particular program. Hence, it should be classified as general revenue.
Now, based on the classification above, we can summarize the revenue sources as follows:
General Revenues:
- General property taxes: $8,000,000
- Fines and forfeits: $82,000
- Unrestricted investment income: $75,000
Program Revenues (Charges for services):
- Restricted (for education) property taxes: $570,000
- Meals tax (restricted for economic development and tourism): $200,000
Program Revenues (Operating grants and contributions):
- Federal grant restricted for police protection: $132,000
Program Revenues (Capital grants and contributions):
- Federal grant restricted for specific general government construction projects for specific functions: $600,000
These amounts should be reported in Clark County's government-wide Statement of Activities for the 2011 fiscal year under the respective categories.