City with Sept 30 year end Capital Assets A Beginning Balance was $75,000,000 in capital assets with $40,000,000 in accumulated depreciation B The City finished a new Admin building with a final cost of $8,500,000 on June 30, 2022. Construction in progress at the beginning of the fiscal year was $6,000,000. C The City started contruction on two new buildings. One for Parks and Recreation and one for the Water Department. The Parks and Rec building had $1,000,000 in associated cost at year end and the Water Department had $2,000,000 in associated cost at year end. D The City sold a bulldozer at auction on March 1, 2022 for $50,000. It had an initial cost of $150,000 and was purchased on February 1, 2018. E The City also purchased 6 new work trucks for $75,000 each for the Code Enforcement Department on April 1. * The City has a capitalization policy of any purchases over $5,000 that are assets with useful lives longer than 1 year. Their depreciation policy is 25 years for buildings and structures, 8 years for equipment and heavy machinery, and 5 years for vehicles - all straight line with no salvage values. Taxes F Adjust for the $25,000 of property taxes that was deferred in 2021 and recognized as revenue in the 2022 fund-basis statements. G Make adjustments for additional revenue accrual. The only adjustment is for property taxes to eliminate the current year deferral of property taxes in the amount of $35,000. Debt/Liabilities H City refinanced their outstanding bonds of $26,600,000 on the first day of the current fiscal year. This was the only outstanding debt at the beginning of the year and the balance at year end was $24,000,000. The bond is a 15 year bond and payments are made each February 15 and August 15. There was a bond premium of $100,000. The interest rate is 5.374%. I The City offered a new bond this year to help fund the building of the new Parks and Rec building. The new bond was for $7,500,000, and was finalized on April 1 with an interest rate of 5%. No payments were made due during the fiscal year. The Bond had a premium of $20,000. J Assume the City adopted a policy in 2022 of allowing employees to accumulate compensated absences. Make an adjustment accruing the expense of $65,000 Charge compensated absences expense. Internal Service Fund K 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). L No revenues from internal service funds were with external parties. Assume $4,200 of the $11,200 Due from Other Funds in the internal service accounts represents a receivable from the General Fund and the remaining $7,000 is due from the enterprise fund. M Reduce governmental fund expenses (General Government Expenses) by the net operating profit of internal service funds. N Eliminate transfers that are between departments reported within governmental activities.