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Before the 2020 basic financial statements, both government-wide and the fund can be prepared for the City of Bingham, you must first record and post

Before the 2020 basic financial statements, both government-wide and the fund can be prepared for the City of Bingham, you must first record and post adjusting and closing entries for governmental activities as described below.

  1. Record depreciation expense for the year 2020 in the governmental activities general journal at the government-wide level using the following information.  Verify the accuracy of the adjusting entries and post to the general ledger by clicking [Post Entries].

    Depreciation Expense Applied to Functions:
    General Government$ 705,000
    Public Safety1,409,000
    Public Works528,000
    Health and Welfare351,000
    Culture and Recreation351,000
    Total depreciation expense$3,344,000
    Depreciation Applicable to Asset Categories (Increases in accumulated depreciation):
    Improvements Other Than Buildings$ 197,000
    Infrastructure639,000
    Buildings502,000
    Equipment2,006,000
    Total depreciation expense$3,344,000

  2. Provide the journal entries to reclassify the current portion of long-term debt related to the two serial bonds payable.

  3. Although closing entries were made in each governmental fund of this cumulative problem, they have not yet been recorded at the government-wide level.
    Required: Record the journal entries required on December 31, 2020, to close all temporary accounts for governmental activities at the government-wide level. These entries should also recognize changes in Net Position—Net Investment in Capital Assets and Net Position—Restricted for Debt Service. For each account to be closed or reclassified, be sure the checkmark for [Closing Entry] ] is selected for each account being closed; “Closing Enty” appears next to the [Add credit] field.   Post the closing entries to the general ledger by clicking on [Post entries].

  4. Use the exportable trial balances found 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 all government-wide and fund financial statements that must be presented by the City of Bingham in order for its basic financial statements to be in conformity with generally accepted accounting principles. (See the list that follows this paragraph and Illustrations 9-3 through 9-8 and Illustrations A2-1 through A2-9 of the Reck, Lowensohn and Neely textbook for examples of these statements.) We recommend that you use Excel to prepare these financial statements; however, your instructor may require that they be prepared manually. Since the Water Utility Fund is the only fund in the proprietary fund's category, you may reprint the statement of net position, statement of revenues, expenses, and changes in net position, and the statement of cash flows prepared for the Water Utility Fund as the required statements for the proprietary fund basic financial statements. With suitable changes in the titles, these statements also represent Business-type Activities in the government-wide financial statements.

    (Note: The City of Bingham is a primary government and has no other organizations for which it is accountable as component units. Also, the FY 2021 financial information for the Investment Pool Fund is not included in any of the basic financial statements you are preparing, as the statements you are preparing pertain only to FY 2020.)

    Government-wide Financial Statements

    1. Statement of net position

    2. Statement of activities
  5. Fund Financial Statements

    1. Balance sheet—governmental funds (with reconciliation of this statement to the government-wide statement of activities)

    2. Statement of revenues, expenditures, and changes in fund balances—governmental funds (with reconciliation of this statement to the government-wide statement of activities)
    3. Statement of net position—proprietary funds
    4. Statement of revenues, expenses, and changes in fund net position—proprietary funds
    5. Statement of cash flows—proprietary funds
9d3 Statement of Net Position as of December 31, 2020
9d4 Statement of Activities for the year ended December 31, 2020
9d5 Governmental Funds Balance Sheet as of December 31, 2020
9d6 Reconciliation of the Governmental Funds Balance Sheet to the GW Statement of Net Position as of December 31, 2020
9d7 Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ended December 31, 2020
9d8 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the GW Statement of Activities for the year ended December 31, 2020
9d9 Proprietary Funds Statement of Net Position as of December 31, 2020
9d10 Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31, 2020
9d11 Proprietary Funds Statement of Cash Flows for the year ended December 31, 2020

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