Chapter 9 Adjusting and Closing Entries for Governmental Activities, Government-wide Level; Preparation of Government-wide and Major Fund
Question:
Chapter 9 Adjusting and Closing Entries for Governmental Activities, Government-wide Level; Preparation of Government-wide and Major Fund Financial Statements
a. Prior to preparing financial statements at the end of FY 2014, it is necessary to record depreciation expense for the year for governmental activities at the government-wide level.
Based on general capital assets assigned to specific functions, depreciation expense related to equipment and infrastructure is allocated to functions as shown below:
Equipment Infrastructure Buildings
General Government $ 42,348 $37,600
Public Safety 220,212 65,800
Public Works 84,696 $118,344 41,360
Culture and Recreation 76,224 43,240
Totals $423,480 $118,344 $188,000
Required:
Record depreciation expense for the year 2014 in the governmental activities general journal at the government-wide level. Verify accuracy of the adjusting entries and post to the general ledger by clicking [Post Entries].
b. Although closing entries were made in each fund in Chapters 4 through 6 of this cumulative problem, they have not yet been recorded at the government-wide level.
Required:
Record the journal entries required on December 31, 2014 to close all temporary accounts for governmental activities at the government-wide level. These entries should also recognize changes in the accounts Net Position—Net Investment in Capital Assets (decrease of $720,668), Net Position—Restricted for Public Safety (increase of $15,000), Net Position—Restricted for Capital Projects (increase of $390,000), and Net Position—Restricted for Debt Service (increase of $28,000). For each account to be closed or reclassified, be sure and click on the check mark for [Closing Entry] and that “Closing Entries” appears in the [Transaction Description] box. Post the closing entries to the general ledger by clicking on [Post Entries].
Please remember that before closing the City of Smithville, you must click on [File], and [Save/Save As] to save your work. Your work is NOT automatically saved.
c. Use the exportable trial balances used in Chapters 2 through 7 of this problem, and the exportable pre-closing trial balance and post-closing trial balance for governmental activities, to prepare required government-wide and governmental fund financial statements and reconciliations that the City of Smithville must present for its basic financial statements to be in conformity with generally accepted accounting principles. We recommend that you use Excel to prepare these financial statements; however, your instructor may want you to do these manually.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus