8C. 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 5C; (3) the proprietary funds Statement of Net position and Statement of Revenues, Expenses, and Changes in Fund Net position from Section 6C.

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	$ 1,065,000
Operational GrantGeneral Government	332,000
Capital GrantPublic Safety	1,340,000
total	$2,737,000

• 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:

a. Record the January 1, 2017 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	$ 64,200,000	28,700,000

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 $ 4,900,000.

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, 2017, 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, 2017. 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 2017 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 2016 and recognized as revenue in the 2017 fund-basis statements.

l. Assume the City adopted a policy in 2017 of allowing employees to accumulate compensated absences. Make an adjustment accruing the expense of $ 42,000 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.

I need help with the worksheet entries and posting the adjustments to the worksheet. Please see picture below for reference.

CITY OF MONROE WORKSHEET TO CONVERT GOVERNMENTAL ACTIVITIES TO ACCRUAL BASIS Gov'tal Fund Balances Govern mental Funds Adjusted Balances for Gov't-wide Stmts Rel Account Titles Debits Credits Adjustments & Eliminations Debits Credits Internal Service Funds Debits Credits A type debit accounts in this column type credit accounts in this column DEBITS: Cash Cash with Fiscal Agent Investments Taxes Receivable, net Interest Receivable. net Inventories Due from State Govt. Due from Other Funds Capital Assets both rows 657,720 928.000 259,000 262.000 16.850 657,720 928,000 250,000 252.000 16.850 657.720 928.000 259.000 262.000 16.850 559,000 559,000 Expenditures (expenses) Current General Govt. Public Safety Highway and Streets Sanitation Health Welfare Culture and Recreation Compensated Absences Exp Other Expenditures (expenses) - Debt Service Principal - Interest (expenditure/expense) both rows - Capital Outlay - Depreciation Other Fin. Uses - Transfers Out 1.646.900 3.026.900 2481.900 591,400 724,100 374.300 917,300 3.026.900 2.481,900 591.400 724,100 374,300 917,300 1.646.900 3.026.900 2.481.900 591,400 724,100 374,300 917,300 800.000 514,000 800.000 514,000 800,000 514,000 5,823,100 5873.100 5,823.100 1,871,700 1871.700 1,871,700 21,454. 170 21,454,170 326,800 40.200 325.000 40,200 326,800 40,200 10.500 10.500 10.500 Total Debits CREDITS: Accounts Payable Due to Other Funds Accrued Interest Payable Bonds Payalbe both rows Premium on Bonds Compensated Absence Payable Advance from Water Utility Fund Deferred Inflows: Property Taxes Accumulated Depreciation both rows Revenues Property Taxes Sales Taxes Interest Licenses & Permits Miscellaneous State Grant for Highway Street Expens Capital Grant-Gen Govt Capital Grant- Public Safety 6.657.500 2.942.000 21,220 800,000 350,000 1,065,000 332.000 1,340,000 8.657.500 2.962,000 21.220 800,000 350,000 6.657,500 2.942.000 21,220 800,000 350,000 1,065,000 332,000 1,340,000 332,000 1.340.000 Other Financing Sources Proceeds of Bonds Premium on Bonds Transfers In Net Position at beginning of year three rows 4.000.000 200.000 1.871,700 4,000,000 200,000 1.871.700 4.000.000 200,000 1,871,700 1,497 250 21.454,170 1.497 250 21.454,170 Total Credits CITY OF MONROE WORKSHEET TO CONVERT GOVERNMENTAL ACTIVITIES TO ACCRUAL BASIS Gov'tal Fund Balances Govern mental Funds Adjusted Balances for Gov't-wide Stmts Rel Account Titles Debits Credits Adjustments & Eliminations Debits Credits Internal Service Funds Debits Credits A type debit accounts in this column type credit accounts in this column DEBITS: Cash Cash with Fiscal Agent Investments Taxes Receivable, net Interest Receivable. net Inventories Due from State Govt. Due from Other Funds Capital Assets both rows 657,720 928.000 259,000 262.000 16.850 657,720 928,000 250,000 252.000 16.850 657.720 928.000 259.000 262.000 16.850 559,000 559,000 Expenditures (expenses) Current General Govt. Public Safety Highway and Streets Sanitation Health Welfare Culture and Recreation Compensated Absences Exp Other Expenditures (expenses) - Debt Service Principal - Interest (expenditure/expense) both rows - Capital Outlay - Depreciation Other Fin. Uses - Transfers Out 1.646.900 3.026.900 2481.900 591,400 724,100 374.300 917,300 3.026.900 2.481,900 591.400 724,100 374,300 917,300 1.646.900 3.026.900 2.481.900 591,400 724,100 374,300 917,300 800.000 514,000 800.000 514,000 800,000 514,000 5,823,100 5873.100 5,823.100 1,871,700 1871.700 1,871,700 21,454. 170 21,454,170 326,800 40.200 325.000 40,200 326,800 40,200 10.500 10.500 10.500 Total Debits CREDITS: Accounts Payable Due to Other Funds Accrued Interest Payable Bonds Payalbe both rows Premium on Bonds Compensated Absence Payable Advance from Water Utility Fund Deferred Inflows: Property Taxes Accumulated Depreciation both rows Revenues Property Taxes Sales Taxes Interest Licenses & Permits Miscellaneous State Grant for Highway Street Expens Capital Grant-Gen Govt Capital Grant- Public Safety 6.657.500 2.942.000 21,220 800,000 350,000 1,065,000 332.000 1,340,000 8.657.500 2.962,000 21.220 800,000 350,000 6.657,500 2.942.000 21,220 800,000 350,000 1,065,000 332,000 1,340,000 332,000 1.340.000 Other Financing Sources Proceeds of Bonds Premium on Bonds Transfers In Net Position at beginning of year three rows 4.000.000 200.000 1.871,700 4,000,000 200,000 1.871.700 4.000.000 200,000 1,871,700 1,497 250 21.454,170 1.497 250 21.454,170 Total Credits