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Problem
On January 1, 2012, a county's government-wide financial statements shows general fixed assets of $2,400,000. For the year ended December 31, 2012, the county's fund financial statement shows an amount of $125,000 next to the caption "Expenditures - capital outlay." To prepare its 2012 government-wide financial statements, the preparer makes a worksheet that uses the 2012 fund-level financial statements as the starting point. As a result, the worksheet does not show any capital assets at the beginning of the year. Make adjusting entry is needed to report the facts about capital assets on the government-wide statements.
What does the Financial Reporting Entity include? Explain.
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