2. Prepare worksheet entries and postto the worksheet for the following items. Identify each adjustmentby the letter used in the problem:
a. Record the January 1, 2015balances of general fixed assets and related accumulateddepreciation accounts. The City of Monroe had the followingbalances (excluding Internal Service Funds):
Cost
Accumulated Depreciation
Totals
$ 65,900,000
29,800,000
b. Eliminate thecapital expenditures shown in the governmental funds Statement ofRevenues, Expenditures, and Changes in Fund Balances.
c. Depreciation expense(governmental activities) for the year totaled $ 5,750,000.
d. Eliminate theother financing sources from the sale of bonds by recording aliability for bonds payable and the related premium.
e. As of January1, 2015, the City of Monroe had $12,000,000 in general obligationbonds outstanding.
f. Eliminate the expenditures for bondprincipal.
g. Accrueinterest in the amount of $328,000. (Two bond issues wereoutstanding; interest payments for both were last made on July 1,2015. The computation is as follows: ($11,200,000 Ã .03 Ã 6/12) +($4,000,000 Ã. 08 Ã 6/12) = $328,000).
h. Adjust for theinterest accrued in the prior year government-wide statements, butrecorded as an expenditure in the 2015 fund basis statements,($12,000,000 Ã .03 Ã 6/12) = $180,000.
i. Amortize bondpremium in the amount of $ 10,000.
j. Makeadjustments for additional revenue accrual. The only adjustment isfor property taxes to eliminate the current year deferral ofproperty taxes.
k. Adjust for the$21,000 of property taxes that was deferred in 2014 and recognizedas revenue in the 2015 fund-basis statements.
l. Assume theCity adopted a policy in 2015 of allowing employees to accumulatecompensated absences. Make an adjustment accruing the expense of $39,500 Charge compensated absences expense.
m. Bring in thebalances of the internal service fund balance sheet accounts.Again, use a single account for all capital assets and a secondaccount for all accumulated depreciation balances (use a separatecolumn of the worksheet to enter Internal Service Fundentries).
n. No revenuesfrom internal service funds were with external parties. Assume$3,200 of the $11,200 âDue from Other Fundsâ in the internalservice accounts represents a receivable from the General Fund andthe remaining $8,000 is due from the enterprise fund. Eliminate the$3,200 interfund receivables.
o. Reducegovernmental fund expenses by the net operating profit of internalservice funds. As the amount is small, reduce general governmentexpenses for the entire amount.
p. Eliminatetransfers that are between departments reported within governmentalactivities.
Gov'tal Fund Balances Adjustments &Eliminations Govern-mental Funds Adjusted Internal Service Funds Balances for Gov't-wide Stmts Debits Credits Debits Credits DEBITS: Cash 830,320 830,320 830,320 Cash with Fiscal Agent 928,000 928,000 928,000 Investments 259,000 259,000 259,000 Taxes Receivable, net 274,000 274,000 274,000 Interest Receivable, net 16,850 16,850 16,850 Inventories - - Due from State Govt. 580,000 580,000 580,000 Due from Other Funds - - Capital Assets - - bothrows - - Expenditures (expenses) Current - General Govt. 1,646,900 1,646,900 1,646,900 Public Safety 3,026,900 3,026,900 3,026,900 Highway and Streets 2,471,900 2,471,900 2,471,900 Sanitation 591,400 591,400 591,400 Health 724,100 724,100 724,100 Welfare 374,300 374,300 374,300 Culture and Recreation 917,300 917,300 917,300 Compensated Absences Exp - - Other Expenditures (expenses) - - - Debt Service Principal 800,000 800,000 800,000 - Interest(expenditure/expense) 514,000 514,000 514,000 bothrows - Capital Outlay 5,798,100 5,798,100 5,798,100 - Depreciation - - Other Fin. Uses - Transfers Out 1,876,700 1,876,700 1,876,700 - Total Debits 21,629,770 21,629,770 CREDITS: Accounts Payable 493,400 493,400 493,400 Due to Other Funds 40,200 40,200 40,200 Accrued Interest Payable - - Bonds Payalbe bothrows - - Premium on Bonds - - Compensated Absence Payable - - Advance from Water Utility Fund - - Deferred Inflows: Property Taxes 27,500 27,500 27,500 Accumulated Depreciation bothrows - - Revenues - Property Taxes 6,657,500 6,657,500 6,657,500 Sales Taxes 2,942,000 2,942,000 2,942,000 Interest 21,220 21,220 21,220 Licenses & Permits 800,000 800,000 800,000 Miscellaneous 350,000 350,000 350,000 State Grant for Highway StreetExpenses 1,072,000 1,072,000 1,072,000 Capital Grant- Gen Gov't 332,000 332,000 332,000 Capital Grant- Public Safety 1,320,000 1,320,000 1,320,000 - - - - Other Financing Sources - - Proceeds of Bonds 4,000,000 4,000,000 4,000,000 Premium on Bonds 200,000 200,000 200,000 Transfers In 1,876,700 1,876,700 1,876,700 Net Position at beginning of year - threerows 1,497,250 1,497,250 1,497,250 Total Credits 21,629,770 21,629,770
| 2. Prepare worksheet entries and postto the worksheet for the following items. Identify each adjustmentby the letter used in the problem: a. Record the January 1, 2015balances of general fixed assets and related accumulateddepreciation accounts. The City of Monroe had the followingbalances (excluding Internal Service Funds):
b. Eliminate thecapital expenditures shown in the governmental funds Statement ofRevenues, Expenditures, and Changes in Fund Balances. c. Depreciation expense(governmental activities) for the year totaled $ 5,750,000. d. Eliminate theother financing sources from the sale of bonds by recording aliability for bonds payable and the related premium. e. As of January1, 2015, the City of Monroe had $12,000,000 in general obligationbonds outstanding. f. Eliminate the expenditures for bondprincipal. g. Accrueinterest in the amount of $328,000. (Two bond issues wereoutstanding; interest payments for both were last made on July 1,2015. The computation is as follows: ($11,200,000 Ã .03 Ã 6/12) +($4,000,000 Ã. 08 Ã 6/12) = $328,000). h. Adjust for theinterest accrued in the prior year government-wide statements, butrecorded as an expenditure in the 2015 fund basis statements,($12,000,000 Ã .03 Ã 6/12) = $180,000. i. Amortize bondpremium in the amount of $ 10,000. j. Makeadjustments for additional revenue accrual. The only adjustment isfor property taxes to eliminate the current year deferral ofproperty taxes. k. Adjust for the$21,000 of property taxes that was deferred in 2014 and recognizedas revenue in the 2015 fund-basis statements. l. Assume theCity adopted a policy in 2015 of allowing employees to accumulatecompensated absences. Make an adjustment accruing the expense of $39,500 Charge compensated absences expense. m. Bring in thebalances of the internal service fund balance sheet accounts.Again, use a single account for all capital assets and a secondaccount for all accumulated depreciation balances (use a separatecolumn of the worksheet to enter Internal Service Fundentries). n. No revenuesfrom internal service funds were with external parties. Assume$3,200 of the $11,200 âDue from Other Fundsâ in the internalservice accounts represents a receivable from the General Fund andthe remaining $8,000 is due from the enterprise fund. Eliminate the$3,200 interfund receivables. o. Reducegovernmental fund expenses by the net operating profit of internalservice funds. As the amount is small, reduce general governmentexpenses for the entire amount. p. Eliminatetransfers that are between departments reported within governmentalactivities. | Gov'tal Fund Balances | Adjustments &Eliminations | Govern-mental Funds Adjusted | Internal Service Funds | Balances for Gov't-wide Stmts | ||||||||||||
| Debits | Credits | Debits | Credits | ||||||||||||||
| DEBITS: | |||||||||||||||||
| Cash | 830,320 | 830,320 | 830,320 | ||||||||||||||
| Cash with Fiscal Agent | 928,000 | 928,000 | 928,000 | ||||||||||||||
| Investments | 259,000 | 259,000 | 259,000 | ||||||||||||||
| Taxes Receivable, net | 274,000 | 274,000 | 274,000 | ||||||||||||||
| Interest Receivable, net | 16,850 | 16,850 | 16,850 | ||||||||||||||
| Inventories | - | - | |||||||||||||||
| Due from State Govt. | 580,000 | 580,000 | 580,000 | ||||||||||||||
| Due from Other Funds | - | - | |||||||||||||||
| Capital Assets | - | - | |||||||||||||||
| bothrows | |||||||||||||||||
| - | - | ||||||||||||||||
| Expenditures (expenses) Current | - | ||||||||||||||||
| General Govt. | 1,646,900 | 1,646,900 | 1,646,900 | ||||||||||||||
| Public Safety | 3,026,900 | 3,026,900 | 3,026,900 | ||||||||||||||
| Highway and Streets | 2,471,900 | 2,471,900 | 2,471,900 | ||||||||||||||
| Sanitation | 591,400 | 591,400 | 591,400 | ||||||||||||||
| Health | 724,100 | 724,100 | 724,100 | ||||||||||||||
| Welfare | 374,300 | 374,300 | 374,300 | ||||||||||||||
| Culture and Recreation | 917,300 | 917,300 | 917,300 | ||||||||||||||
| Compensated Absences Exp | - | - | |||||||||||||||
| Other Expenditures (expenses) | - | - | |||||||||||||||
| - Debt Service Principal | 800,000 | 800,000 | 800,000 | ||||||||||||||
| - Interest(expenditure/expense) | 514,000 | 514,000 | 514,000 | ||||||||||||||
| bothrows | |||||||||||||||||
| - Capital Outlay | 5,798,100 | 5,798,100 | 5,798,100 | ||||||||||||||
| - Depreciation | - | - | |||||||||||||||
| Other Fin. Uses - Transfers Out | 1,876,700 | 1,876,700 | 1,876,700 | ||||||||||||||
| - | |||||||||||||||||
| Total Debits | 21,629,770 | 21,629,770 | |||||||||||||||
| CREDITS: | |||||||||||||||||
| Accounts Payable | 493,400 | 493,400 | 493,400 | ||||||||||||||
| Due to Other Funds | 40,200 | 40,200 | 40,200 | ||||||||||||||
| Accrued Interest Payable | - | - | |||||||||||||||
| Bonds Payalbe | |||||||||||||||||
| bothrows | - | - | |||||||||||||||
| Premium on Bonds | - | - | |||||||||||||||
| Compensated Absence Payable | - | - | |||||||||||||||
| Advance from Water Utility Fund | - | - | |||||||||||||||
| Deferred Inflows: Property Taxes | 27,500 | 27,500 | 27,500 | ||||||||||||||
| Accumulated Depreciation | |||||||||||||||||
| bothrows | - | - | |||||||||||||||
| Revenues | - | ||||||||||||||||
| Property Taxes | 6,657,500 | 6,657,500 | 6,657,500 | ||||||||||||||
| Sales Taxes | 2,942,000 | 2,942,000 | 2,942,000 | ||||||||||||||
| Interest | 21,220 | 21,220 | 21,220 | ||||||||||||||
| Licenses & Permits | 800,000 | 800,000 | 800,000 | ||||||||||||||
| Miscellaneous | 350,000 | 350,000 | 350,000 | ||||||||||||||
| State Grant for Highway StreetExpenses | 1,072,000 | 1,072,000 | 1,072,000 | ||||||||||||||
| Capital Grant- Gen Gov't | 332,000 | 332,000 | 332,000 | ||||||||||||||
| Capital Grant- Public Safety | 1,320,000 | 1,320,000 | 1,320,000 | ||||||||||||||
| - | - | ||||||||||||||||
| - | - | ||||||||||||||||
| Other Financing Sources | - | - | |||||||||||||||
| Proceeds of Bonds | 4,000,000 | 4,000,000 | 4,000,000 | ||||||||||||||
| Premium on Bonds | 200,000 | 200,000 | 200,000 | ||||||||||||||
| Transfers In | 1,876,700 | 1,876,700 | 1,876,700 | ||||||||||||||
| Net Position at beginning of year | - | ||||||||||||||||
| threerows | |||||||||||||||||
| 1,497,250 | 1,497,250 | 1,497,250 | |||||||||||||||
| Total Credits | 21,629,770 | 21,629,770 | |||||||||||||||
