9-12. The fund-basis financial statements of Cherokee Library District (a special-purpose government engaged only in governmental activities) have been completed for the year 2017 and appear in the second and third tabs of the Excel spreadsheet provided with this exercise. The Page 280 following information is also available: a. Capital Assets Capital assets purchased in previous years through governmental-type funds totaled $19,700,000 and had accumulated depreciation of $5,770,000. Depreciation on capital assets used in governmental-type activities amounted to $426,000 for 2017. No capital assets were sold or disposed of in 2017, and all purchases are properly reflected in the fund-basis statements as capital expenditures. b. Long-Term Debt There were $11,000,000 of outstanding long-term notes associated with governmental- type funds as of January 1, 2017. Interest is paid monthly. December 31, 2017, notes with a face value of $6,370,000 were issued at par. In addition, principal payments totaled $1,340,000. The notes, and any retained percentage on construction contracts, are associated with the purchase of capital assets. c. Deferred Inflows Deferred inflows are comprised solely of property taxes expected to be collected more than 60 days after year-end. The balance of deferred taxes at the end of 2016 was $95,200. d. Transfers: Transfers were between governmental-type funds. e. Beginning net position for the government-wide statements totaled $20,107,321 as of January 1, 2017. This amount has already been entered in the Statement of Activities. Required: Use the Excel template provided to complete the following requirements; a separate tab is provided for each requirement. a. Prepare the journal entries necessary to convert the governmental fund financial statements to the accrual basis of accounting. b. Post the journal entries to the (shaded) Adjustments column to produce a Statement of Activities. You do not have to post amounts debited or credited to (beginning) net position. These have been reflected in item e above. c. Post the journal entries to the (shaded) Adjustments column to produce a Statement of Net Position. Calculate the appropriate amounts for the Net Position accounts, assuming there are no restricted net position. Capital General Fund Projects Fund Total Governmental Funds Adjustments to Government-wide Statement of Activities $ 20,205,519 2,269,751 145,801 20,205,519 2,415,552 20,205,519 2,415,552 Revenues Property Taxes Intergovernmental revenues Investment income: Interest income Net increase in fair value of investments Total Revenues 461,684 161,691 23,098,645 461,684 161,691 2 3,244,446 461,684 161,691 23,244,446 145,801 14,032,711 5,474,632 14,032,711 5,474,632 14,032,711 5,474,632 Expenditures / Expenses Current: Public services Library Materials Depreciation Capital Outlay Debt Service Principal Interest Total Expenditures 453,033 7,539,481 7,992,514 7,992,514 1,340,000 830,904 22,131,2807,539,481 1,340,000 830,904 29,670,761 1,340,000 830,904 29,670,761 Excess (Deficiency) of Revenues Over Expenditures 967,365 (7,393,680) (6,426,315) (6,426,315) Other financing sources (uses) Proceeds of debt Transfers in Transfers out total other financing sources (uses) 6,370,000 2,500,000 6,370,000 2,500,000 (2,500,000) 6,370,000 6,370,000 2,500,000 (2,500,000) 6,370,000 (2,500,000) (2,500,000) 8,870,000 Net Change in Fund Balance/Net Position Fund Balance/Net Position, January 1 Fund Balance/Net Position, December 31 (1,532,635) 12,609,441 $ 11,076,806 1,476,320 2,764,880 $ 4,241,200 (56,315) 1 5,374,321 15,318,006 (56,315) 15,374,321 15,318,006 $ $ Proof for Beginning Net Position Reminning Fund Balances 15 374 321 Capital Projects Fund Total Governmental Funds Adjustments to Government-wide Statement of Net Position General Fund $ 4,825,591 $ $ Assets Cash Investments Taxes Receivable - Gross Interest Receivable Prepaid Items Capital Assets Accumulated Depreciation Total Assets 11,034,232 $ 683,722 131,534 2,487 596,901 15,859,823 683,722 131,534 2,487 596,901 15,859,823 683,722 131,534 2,487 596,901 $ 12,448,876 $ 4,825,591 $ 17,274,467 $ - $ 17,274,467 324,609 877,468 400,602 Liabilities, Deferred Inflows and Fund Balances Liabilities Accounts Payable Accrued Liabilities Contracts payable - Retained % Long-term Notes Payable Total Liabilities Deferred Inflows Deferred Inflows - Property Taxes 1,202,077 400,602 259,782 1,202,077 400,602 259,782 259,782 1,278,070 584,391 1,862,461 1,862,461 94,000 94,000 94,000 596,901 596,901 Fund Balances Nonspendable Prepaid Items Assigned Library purchases Capital projects Unassigned Total Fund Balances 585,220 4,241,200 585,220 4,241,200 9,894,685 15,318,006 9,894,685 11,076,806 4,241,200 Net Position Net investment in capital assets Unrestricted 9-12. The fund-basis financial statements of Cherokee Library District (a special-purpose government engaged only in governmental activities) have been completed for the year 2017 and appear in the second and third tabs of the Excel spreadsheet provided with this exercise. The Page 280 following information is also available: a. Capital Assets Capital assets purchased in previous years through governmental-type funds totaled $19,700,000 and had accumulated depreciation of $5,770,000. Depreciation on capital assets used in governmental-type activities amounted to $426,000 for 2017. No capital assets were sold or disposed of in 2017, and all purchases are properly reflected in the fund-basis statements as capital expenditures. b. Long-Term Debt There were $11,000,000 of outstanding long-term notes associated with governmental- type funds as of January 1, 2017. Interest is paid monthly. December 31, 2017, notes with a face value of $6,370,000 were issued at par. In addition, principal payments totaled $1,340,000. The notes, and any retained percentage on construction contracts, are associated with the purchase of capital assets. c. Deferred Inflows Deferred inflows are comprised solely of property taxes expected to be collected more than 60 days after year-end. The balance of deferred taxes at the end of 2016 was $95,200. d. Transfers: Transfers were between governmental-type funds. e. Beginning net position for the government-wide statements totaled $20,107,321 as of January 1, 2017. This amount has already been entered in the Statement of Activities. Required: Use the Excel template provided to complete the following requirements; a separate tab is provided for each requirement. a. Prepare the journal entries necessary to convert the governmental fund financial statements to the accrual basis of accounting. b. Post the journal entries to the (shaded) Adjustments column to produce a Statement of Activities. You do not have to post amounts debited or credited to (beginning) net position. These have been reflected in item e above. c. Post the journal entries to the (shaded) Adjustments column to produce a Statement of Net Position. Calculate the appropriate amounts for the Net Position accounts, assuming there are no restricted net position. Capital General Fund Projects Fund Total Governmental Funds Adjustments to Government-wide Statement of Activities $ 20,205,519 2,269,751 145,801 20,205,519 2,415,552 20,205,519 2,415,552 Revenues Property Taxes Intergovernmental revenues Investment income: Interest income Net increase in fair value of investments Total Revenues 461,684 161,691 23,098,645 461,684 161,691 2 3,244,446 461,684 161,691 23,244,446 145,801 14,032,711 5,474,632 14,032,711 5,474,632 14,032,711 5,474,632 Expenditures / Expenses Current: Public services Library Materials Depreciation Capital Outlay Debt Service Principal Interest Total Expenditures 453,033 7,539,481 7,992,514 7,992,514 1,340,000 830,904 22,131,2807,539,481 1,340,000 830,904 29,670,761 1,340,000 830,904 29,670,761 Excess (Deficiency) of Revenues Over Expenditures 967,365 (7,393,680) (6,426,315) (6,426,315) Other financing sources (uses) Proceeds of debt Transfers in Transfers out total other financing sources (uses) 6,370,000 2,500,000 6,370,000 2,500,000 (2,500,000) 6,370,000 6,370,000 2,500,000 (2,500,000) 6,370,000 (2,500,000) (2,500,000) 8,870,000 Net Change in Fund Balance/Net Position Fund Balance/Net Position, January 1 Fund Balance/Net Position, December 31 (1,532,635) 12,609,441 $ 11,076,806 1,476,320 2,764,880 $ 4,241,200 (56,315) 1 5,374,321 15,318,006 (56,315) 15,374,321 15,318,006 $ $ Proof for Beginning Net Position Reminning Fund Balances 15 374 321 Capital Projects Fund Total Governmental Funds Adjustments to Government-wide Statement of Net Position General Fund $ 4,825,591 $ $ Assets Cash Investments Taxes Receivable - Gross Interest Receivable Prepaid Items Capital Assets Accumulated Depreciation Total Assets 11,034,232 $ 683,722 131,534 2,487 596,901 15,859,823 683,722 131,534 2,487 596,901 15,859,823 683,722 131,534 2,487 596,901 $ 12,448,876 $ 4,825,591 $ 17,274,467 $ - $ 17,274,467 324,609 877,468 400,602 Liabilities, Deferred Inflows and Fund Balances Liabilities Accounts Payable Accrued Liabilities Contracts payable - Retained % Long-term Notes Payable Total Liabilities Deferred Inflows Deferred Inflows - Property Taxes 1,202,077 400,602 259,782 1,202,077 400,602 259,782 259,782 1,278,070 584,391 1,862,461 1,862,461 94,000 94,000 94,000 596,901 596,901 Fund Balances Nonspendable Prepaid Items Assigned Library purchases Capital projects Unassigned Total Fund Balances 585,220 4,241,200 585,220 4,241,200 9,894,685 15,318,006 9,894,685 11,076,806 4,241,200 Net Position Net investment in capital assets Unrestricted