GOVERNMENTAL ACCOUNTING

Chapter 9 Adjusting and Closing Entries for Governmental Activities, Government-Wide Level; Preparation of Government-Wide and Major Fund Financial Statements Before the 2017 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. 9-a] Record depreciation expense for the year 2017 in the governmental activities general journal at the government-wide level using the following information Debit Depreciation Expense Applied to Functions: (Use Expenses not Deprc Expense) General Government Public Safety Public Works Health and Welfare Culture and Recreation $704,000 1,408,000 528,000 352,000 352,000 3.344.000 Total depreciation expense Credit Depreciation Applicable to Asset Categories (Increases in accumulated depreciation) Improvements Other Than $198,000 638,000 506,000 2,002,000 3.344.000 Buildings Infrastructure Buildings Equipment Total depreciation expense b. [Para. 9-b] Provide the journal entries to reclassify the current portion of long-term debt related to the two serial bonds payable. we know from Chapter 2, the current portion of the long-term 2% 9,500,000 bond was $500,000 and from Chapter 5, the 3% 7,500,000 bonds are 10 year bonds, which would make their current portion 1/10h of the balance or $750,000. Therefore, reclass these amounts from each bond into Current Portion of Long-Term Debt. Which accounts are you debiting and crediting