2. Prepare worksheet entries and post to the worksheet for the following items. Identify each adjustment by the letter used in the problem:

a. Record the January 1, 2015 balances of general fixed assets and related accumulated depreciation accounts. The City of Monroe had the following balances (excluding Internal Service Funds):

	Cost	Accumulated Depreciation
Totals	$ 65,900,000	29,800,000

b. Eliminate the capital expenditures shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances.

c. Depreciation expense (governmental activities) for the year totaled $ 5,750,000.

d. Eliminate the other financing sources from the sale of bonds by recording a liability for bonds payable and the related premium.

e. As of January 1, 2015, the City of Monroe had $12,000,000 in general obligation bonds outstanding.

f. Eliminate the expenditures for bond principal.

g. Accrue interest in the amount of $328,000. (Two bond issues were outstanding; interest payments for both were last made on July 1, 2015. The computation is as follows: ($11,200,000 .03 6/12) + ($4,000,000 . 08 6/12) = $328,000).

h. Adjust for the interest accrued in the prior year government-wide statements, but recorded as an expenditure in the 2015 fund basis statements, ($12,000,000 .03 6/12) = $180,000.

i. Amortize bond premium in the amount of $ 10,000.

j. Make adjustments for additional revenue accrual. The only adjustment is for property taxes to eliminate the current year deferral of property taxes.

k. Adjust for the $21,000 of property taxes that was deferred in 2014 and recognized as revenue in the 2015 fund-basis statements.

l. Assume the City adopted a policy in 2015 of allowing employees to accumulate compensated absences. Make an adjustment accruing the expense of $ 39,500 Charge compensated absences expense.

m. Bring in the balances of the internal service fund balance sheet accounts. Again, use a single account for all capital assets and a second account for all accumulated depreciation balances (use a separate column of the worksheet to enter Internal Service Fund entries).

n. No revenues from internal service funds were with external parties. Assume $3,200 of the $11,200 Due from Other Funds in the internal service accounts represents a receivable from the General Fund and the remaining $8,000 is due from the enterprise fund. Eliminate the $3,200 interfund receivables.

o. Reduce governmental fund expenses by the net operating profit of internal service funds. As the amount is small, reduce general government expenses for the entire amount.

p. Eliminate transfers that are between departments reported within governmental activities.

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

-

-

both rows

-

-

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

both rows

- 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

both rows

-

-

Premium on Bonds

-

-

Compensated Absence Payable

-

-

Advance from Water Utility Fund

-

-

Deferred Inflows: Property Taxes

27,500

27,500

27,500

Accumulated Depreciation

both rows

-

-

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 Street Expenses

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

-

three rows

1,497,250

1,497,250

1,497,250

Total Credits

21,629,770

21,629,770