Government-wide Financial Statements (Chapter 8) Use a worksheet as illustrated in the text to adjust the governmental funds from Part 1 from modified-accrual accounting to full-accrual accounting basis On the worksheet, the balances from the "Total" column on the governmental funds financial statements have already been entered for you and can be used as a check figure for the governmental fund financial statements Prepare the following worksheet entries and post to the worksheet. Identify each entry by the appropriate letter below Worksheet Entries: The City of Eagleton began the year with capital assets that had an original cost A. of $1,875,000 and accumulated depreciation of $314,000 B. Eliminate the Capital Expenditures shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance. Depreciation for 2018 on existing capital assets is $78,500. Because the new C school building in the capital project fund is not yet complete it will not be depreciated for 2018. On January 1, 2018, the City of Eagleton had outstanding bond payable of D. $1,500,000 E. Eliminate the Other Financing Sources: Proceeds from Bond Issuance (don't forget the bond premium) shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance. F. Eliminate expenditures for Debt Service: Bond Principle shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance G. Accrue nine months of interest for the bond that was issued on April 1, 2018. (see Entry CPI) H. Record amortization for the bond premium received from the April 1,2018 bond issuance using the straight-line method (9 months). Eliminate the current year recognition of the prior year deferred inflow for I. property taxes (see Entry GF3) J Adjust the current year deferred inflow for property taxes to recognize revenue in the current year (see Entry GF16). Include the Risk Management Fund with the governmental activities by adding the balances from the Proprietary Funds Statement of Net Position prepared above to the combining worksheet. Combine all capital assets for the Risk Management Fund into one account, do the same for any accumulated depreciation accounts (the conversion worksheet has a separate set of columns available for entries related to internal service funds). K. L. Adjust the governmental fund expenditures for the operating loss reported by the Risk Management Fund, 40% of the loss is attributable to general government operations, 30% to public safety, and 30% to education. Government-wide Financial Statements (Chapter 8) Use a worksheet as illustrated in the text to adjust the governmental funds from Part 1 from modified-accrual accounting to full-accrual accounting basis On the worksheet, the balances from the "Total" column on the governmental funds financial statements have already been entered for you and can be used as a check figure for the governmental fund financial statements Prepare the following worksheet entries and post to the worksheet. Identify each entry by the appropriate letter below Worksheet Entries: The City of Eagleton began the year with capital assets that had an original cost A. of $1,875,000 and accumulated depreciation of $314,000 B. Eliminate the Capital Expenditures shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance. Depreciation for 2018 on existing capital assets is $78,500. Because the new C school building in the capital project fund is not yet complete it will not be depreciated for 2018. On January 1, 2018, the City of Eagleton had outstanding bond payable of D. $1,500,000 E. Eliminate the Other Financing Sources: Proceeds from Bond Issuance (don't forget the bond premium) shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance. F. Eliminate expenditures for Debt Service: Bond Principle shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance G. Accrue nine months of interest for the bond that was issued on April 1, 2018. (see Entry CPI) H. Record amortization for the bond premium received from the April 1,2018 bond issuance using the straight-line method (9 months). Eliminate the current year recognition of the prior year deferred inflow for I. property taxes (see Entry GF3) J Adjust the current year deferred inflow for property taxes to recognize revenue in the current year (see Entry GF16). Include the Risk Management Fund with the governmental activities by adding the balances from the Proprietary Funds Statement of Net Position prepared above to the combining worksheet. Combine all capital assets for the Risk Management Fund into one account, do the same for any accumulated depreciation accounts (the conversion worksheet has a separate set of columns available for entries related to internal service funds). K. L. Adjust the governmental fund expenditures for the operating loss reported by the Risk Management Fund, 40% of the loss is attributable to general government operations, 30% to public safety, and 30% to education
