$8$C$.$ Assemble the following from previous continuous problems: $(1)$ the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances from Section $5$C; $(3)$ the proprietary funds Statement of Net Position and Statement of Revenues, Expenses, and Changes in Fund Net Position from Section $6$C$.($Please right click on the attached document and select open in new window. Then, download the template and enter the required values in the appropriate fields. Save your completed template to your computer and then upload it here by clicking "Browse." Next, click "Save."$)$

Required:

$1.$ Start a worksheet for adjustments, using the trial balance format illustrated in the text $($i$.$e$.$ list accounts with debit balances first, then accounts with credit balances$).$ Enter the balances from the governmental funds financial statements prepared for Section $5-$C$.$ When doing this, follow the following guidelines:

Net Position: Use a single account for net position $($which will include the beginning balance of all fund balance accounts$).$

Intergovernmental Revenues: When setting up the worksheet, set up separate lines for the intergovernmental revenues as follows:

State Grant for Highway and Street Maintenance $ $1,067,500$

Operational Grant$$General Government $332,000$

Capital Grant$$Public Safety $1,335,000$

Total $ $2,734,500$

Capital Assets: It is not necessary to set up separate lines for different classes of capital $($fixed$)$ assets or accumulated depreciation $($simply use one row for Capital Assets and another for Accumulated Depreciation$).$

Confirm that the total debits and credits equal.

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

Record the January $1,2020$ balances of general fixed asset and related accumulated depreciation accounts. The City of Monroe had the following balances $($excluding Internal Service Funds$)$:

Cost Accumulated Depreciation

Totals $ $67,900,000$ $ $32,000,000$

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

Depreciation Expense $($governmental activities$)$ for the year totaled $$5,130,000.$

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

As of January $1,2020,$ the City of Monroe had $$12,000,000$ in general obligation bonds outstanding.

Eliminate the expenditures for bond principal.

Accrue interest in the amount of $$328,000.($Two bond issues were outstanding; interest payments for both were last made on July $1,2020.$ The computation is as follows: $($$$11,200,000\backslash$times $0\mathrm{.}03\backslash$times $6/12)+($$$4,000,000\backslash$times $0\mathrm{.}08\backslash$times $6/12)=$ $$328,000).$

Adjust for the interest accrued in the prior year government$-$wide statements, but recorded as an expenditure in the $2020$ fund basis statements, $($$$12,000,000\backslash$times $0\mathrm{.}03\backslash$times $6/12)=$ $$180,000.$

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

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

Adjust for the $$21,000$ of property taxes that was deferred in $2019$ and recognized as revenue in the $2020$ fund$-$basis statements.

Assume the City adopted a policy in $2020$ of allowing employees to accumulate compensated absences$.$ Make an adjustment accruing the expense of $$42,000$ Charge compensated absences expense.

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$).$

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.

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.

Eliminate transfers that are between departments reported within governmental activities.

$3.$ Prepare a Statement of Activities for the City of Monroe for the Year Ended December $31,2020.$ For purposes of this statement, assume:

$$332,000$ in the General Fund is a state grant specifically to support general government programs.

$$1,067,500$ in the Street and Highway Fund is an operating grant specifically for highway and street maintenance expenses.

$$1,335,000$ in the City Jail Construction Fund is a capital grant that applies to public safety.