. Simonsen Village is a relatively new community. At the start of the year, the government had no long-term assets or liabilities. In fact, all the infrastructure (e.g., roads) in the village are...

. Simonsen Village is a relatively new community. At the start of the year, the government had no long-term assets or liabilities. In fact, all the infrastructure (e.g., roads) in the village are owned by the county or state rather than the town. However, the village government has the primary responsibility for putting out fires in the village. Transactions 6 and 7 for Simonsen Village, described in Problem 12-4, both relate to the town’s new fire truck.

Exhibit 12-3 presents January 1, 2021, balances for Simonsen Village’s accounts. These balances at the start of the year were the same on both the modified accrual and accrual bases. (Hint: That may not be the case at the end of the year.) Show the beginning balances from Exhibit 12-3 and the transactions from Problem 12-4 in a worksheet format similar to Exhibit 12-2. Show ending balances. Make a separate section for each fund .