Chapter 9 Adjusting and Closing Entries for Governmental Activities, Government-Wide Level; Preparation of Government-Wide and Major Fund Financial Statements

Before the 2020 basic financial statements, both government-wide and 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.

a.[Para. 9a] Record depreciation expense for the year 2020 in the governmental activities general journal at the government-wide level using the following information.Verify 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 Recreation 351,000

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

Equipment 2,006,000

Total depreciation expense$3,344,000

b.[Para. 9b] Provide the journal entries to reclassify the current portion of long-term debt related to the two serial bonds payable.

c.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 PositionNet Investment in Capital Assets and Net PositionRestricted for Debt Service.For each account to be closed or reclassified, be sure the check mark 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].