Chapter 9 Adjusting and Closing Entries for Governmental Activities. I need help with part B only.
Chapter 9 Adjusting and Closing Entries for Governmental Activities, Government-Wide Level; Preparation of Government-Wide and Major Fund Financial Statements a. Prior to preparing nancial statements at the end of FY 2020, it is necessary to record depreciation expense for the year for governmental activities at the government-wide level. Based on general capital assets assigned to specic functions, depreciation expense related to equipment and infrastructure is allocated to functions as shown below: Equipment Infrastructure Buildings General Government $ 54,920 $45,336 Public Safety 187, 840 66,115 Public Works 125,596 $ 98,620 49,114 Culture and Recreation 72,244 28,335 Totals $440,600 i? 98,620 $188,900 Required: [Para. 9a] Record depreciation expense for the year 2020 in the governmental activities general journal at the government-wide level. Verify accuracy of the adjusting entries and post to the general ledger by clicking [Post entries]. b. Closing Entries. Although closing entries were made in each fund in Chapters 4 through 6 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 the accounts Net PositionNet Investment in Capital Assets, Net PositionRestricted for Public Safety (see General Fund), and Net PositionRestricted for Capital Projects (see Capital Projects Fund to calculate net position). (Note: Due to the need to deduct accrued interest on longterm debt in calculating the December 31, 2020 balance of Net PositionRestricted for Debt Service you will end up with no restriction on net position for debt service.) For each account to be closed or reclassied, be sure and click on the check mark for [Closing Entry] and that \"Closing Entries\" appears in the [Add credit] eld. Post the closing entries to the general ledger by clicking on [Post entries]. c. Use the exportable trial balances used in Chapters 2 through 6 of this problem, and the exportable pre-closing trial balance and post-closing trial balance for governmental activities, to prepare required government-wide and governmental fund nancial statements and reconciliations that the City of Smithville must present for its basic financial statements to be in conformity with generally accepted accounting principles. (See Illustrations 9-3 through 9- 8 of the textbook for examples of these statements.) We recommend that you use Excel to prepare these nancial statements; however, your instructor may want you to do these manually. (Note: The City of Smithville is a primary government and has no other organizations for which it is accountable as component units.) Pre- closing Trial Balance as of 2020 City of Smithville* 5 - Governmental Activities , Governmental - Wide level Description Debit Credit Cash 505, 192 Allowance for Uncollectible Current Taxes 75, 148 Taxes Receivable - Delinquent* 3.95 , 049 Allowance for Uncollectible Delinquent Taxes 25, 822 Interest and Penalties Receivable on Taxes 46, 356 Allowance for Uncollectible Interest and Penalties 6. 859 Due from State Government 150 , 000 Interest Receivable on Investments 12, 500 Land 4 , 180 ,000 Infrastructure* 9 , 862 , 000 Accumulated Depreciation - Infrastructure 2 , 713, 944 Buildings 6 , 296, 000 Accumulated Depreciation - Buildings\\ 1 , 731 , 000 Equipment 3 , 589 , 140 Accumulated Depreciation- Equipment 1 , 765 , 480 Vouchers Payable 3.34 , 166 Due to Federal Government 125 , 210 Due to State Government LOO'S Accrued Interest Payable on Long - Term Debt 12, 500 Deferred Serial Bonds Payable 2, 000 , 000 Premium on Deferred Serial Bonds Payable* 18 , 686 Net Position - Net Investment in Capital Assets 17 , 684 , 376 Net Position- Unrestricted 519, 998 Program Revenues- General Government- Charges for Services 1, 032, 990 Program Revenues - Public Safety- Operating Grants and Contributions 639, 000 Program Revenues- Culture and Recreation- Charges for Services 281, 397 Program Revenues- Culture and Recreation- Operating Grants and Contributions 150, 000 General Revenues - Taxes- Real Property 1 , 841 , 126 General Revenues - Taxes- Sales 560 , 00 General Revenues- Interest and Penalties on Taxes 37 , 252 Expenses- General Government 3 , 344 , 284 Expenses - Public Safety 1 , 905, 390 Expenses - Public Works 652, 406 Expenses- Culture and Recreation 5:59, 802 Expenses- Interest on Long - Term Debt 36 , 186 Totals for all accounts 31 , 547 , 627\\ 31 , 547 , 6:27 Pre-closing Trial Balance Page 1 Of*
