Hello,

I am trying to study for my governmental accounting test. This City of Monroe Project was assigned as a study guide. The chapter 8 portion is the only part I cannot get. If you could please attach the excel spreadsheets with the correct journal entries, I would appreciate it. I am attaching the Chapter 8 doc saying what needs to be filled out, and the excel sheet with template. Assume the previous excel sheets have the correct answers. There may be just one entry that is incorrect.

STORES AND SERVICES INTERNAL SERVICE FUND Account Titles reference Debits Credits bb 6-C-1 2 2 CASH 27,000 4 ADVANCE FROM ENTERPRISE FUND CASH 5 OPERATING EXPENSES COST OF SALES AND SE INVENTORY SUPPLIES 6 Cash 4 bb 3 5 2 1 bb LAND 18,000 303,500 303,500 47,300 34,040 282,200 18,000 15,000 15,000 296,960 bb ACCUMULATED DEPR' BUILDINGS 33,000 bb 11,000 BUILDINGS 84,000 296,960 ENTERPRISE FUND 58,000 313,200 OTHER FUNDS REVENUES CHARGES FOR SALES AND SERVICES Operating Expenses - Cost of Sales and Services Operating Expenses - Administrative Accounts Payable 15,000 355,700 DUE FROM OTHER FUNDS 27,000 27,000 313,200 31,000 27,000 DUE FROM OTHER FUNDS 3 INVENTORY SUPPLIES A/P CASH 31,000 27,000 360,000 INVENTORY OF SUPPLIES 27,500 296,960 303,500 84,000 44,000 bb ACCUMULATED DEPR' EQUIPMENT 25,000 bb 4,600 EQUIPMENT 46,000 46,000 29,600 371,200 48,500 9,200 57,700 ACCOUNTS PAYABLE 355,700 19,000 303,500 57,700 bb 4 3 ADVANCE FROM ENTERPRISE FUND 15,000 30,000 58,000 50,000 bb NET POSITION ( beginning) 126,500 bb 360,000 50,000 310,000 Enterprise Fund Other Funds Accounts Payable Cash Operating Expenses - Depreciation Accumulated Depreciation - Building Accumulated Depreciation - Equipment 24,500 7,000 126,500 355,700 355,700 15,600 REVENUES - CHARGES FOR SALES & SERVICES 371,200 5 OPERATING EXPENSES COST OF SALES & SERVs 296,960 OPERATING EXPENSES ADMINISTRATION 9,200 OPERATING EXPENSES DEPRECIATION 15,600 11,000 4,600 371,200 296,960 Total Debits Total Credits 9,200 833,300 602,800 - 15,600 WATER AND SEWER ENTERPRISE FUND reference 6-C-2 1 2 Account Titles Customer-Accounts Receivable Due from General fund Revenues - Charges for Sales and Services CASH Debits 1,039,000 CASH 105,000 351,900 962,000 162,500 15,000 393,100 50,000 25,000 CUSTOMER ACCOUNTS RECEIVABLE bb 77,000 962,000 1,002,000 ESTIMATED UNCOLLECTIBLE ACCNTS 4,000 bb bb 5,500 3,000 DUE FROM GENERAL FUND 37,000 962,000 CASH 962,000 99,500 114,000 9,500 37,000 15,000 Advance to Supplies and Stores Fund 4 bb ### 37,000 Customer A/R 3 Credits Materials AND Supplies Inventories A/P 15,000 257,000 257,000 MATERIALS & SUPPLIES ADVANCE TO SUPPLIES WATER TREATMENT INVENTORIES AND STORES FUND PLANT bb 28,000 bb 30,000 bb 4,200,000 257,000 247,900 15,000 203,000 ACCUMULATED DEPR' - WATER PLANT 1,200,000 bb 275,000 5 6 Cost of Sales and Services Administration SELLING Construciton Work-in-progress Materials & Supplies Inventories 164,900 18,000 15,000 50,000 Cost of Sales and Services 265,800 91,400 43,900 49,300 Administration SELLING Construciton Work-in-progress Payroll Taxes Payable 6 7 8 9 247,900 351,900 Non-operating Expenses - Interest Cash 162,500 Construciton Work-in-progress Non-operating Expenses - Interest Water Treatment Plant Construciton Work-in-progress A/P Payroll Taxes Payable Cash 14 15 CONSTRUCTION IN PROCESS 203,000 50,000 203,000 49,300 17,000 bb 4,403,000 RESTRICTED ASSETS 117,000 25,000 1,475,000 ACCOUNTS PAYABLE 97,000 bb 297,900 257,000 PAYROLL TAXES PAYABLE - bb 351,900 450,400 95,200 116,300 142,000 56,100 3,300 351,900 162,500 17,000 DUE TO STORES & SERVICES FUND - bb 50,000 58,000 REVENUE BONDS PAYABLE ### bb NET POSITION ( beginning) 959,000 bb REVENUES - CHARGES FOR SALES & SERVICES 1,039,000 17,000 203,000 8,000 ### 959,000 1,039,000 203,000 8,520 5,500 3,020 297,900 95,200 OPERATING EXPENSES COST OF SALES & SERVs 164,900 265,800 58,000 OPERATING EXPENSES SELLING 15,000 43,900 488,700 58,900 OPERATING EXPENSES ADMINISTRATION 18,000 91,400 8,520 117,920 OPERATING EXPENSES DEPRECIATION 275,000 275,000 393,100 Due to Stores & Service Fund Cash 50,000 Cost of Sales and Services Due to Stores & Service Fund 13 bb 15,000 450,400 Payroll Taxes Payable Cash 10+11 ADMINISTRATIOM Estimated Uncollectible Accounts CUSTOMER A/R 12 37,100 NON- OPERATING EXPENSES INTEREST 162,500 17,000 58,000 Depreciation Accumulated Depreciation Water Plant Restricted Assets Cash 50,000 58,000 275,000 Total Debits Total Credits 6,049,920 6,049,900 145,500 - 275,000 25,000 25,000 Stores and Services Internal Service Fund Closing Entry Account Title Debits REVENUES CHARGES FOR SALES AND SERV Operating Expenses - Cost of Sales and Services Operating Expenses - Administrative Operating Expenses - Depreciation Net Position Credits 371,200 345,460 9,200 15,600 940 Net Investment in Capital Restricted Assets Net Investment in Capital Assets Capital Assets Less: Accumulated Depreciation Less: Advance from Enterprise fund Restricted Unrestricted NET POSITION 126,500 940 closing entry 127,440 Unrestricted Total 148,000 (73,600) (7,000) 67,400 Preclosing - 148,000 (73,600) (7,000) 60,040 127,440 60,040 60,040 Water and Sewer Enterprise Fund Closing Entry Account Title Revenues - Charges for Sales and Services Net Position Operating Expenses - Cost of Sales and Services Operating Expenses - Selling Operating Expenses -DEPRECIATION Operating Expenses - AADMINISTRATION Non- Operating Expenses - Interest Debits 1,039,000 47,020 Credits 488,700 58,900 275,000 117,920 145,500 NET POSITION 959,000 47,020 911,980 Net Investment in Capital Restricted Assets Net Investment in Capital Assets Capital Assets Less: Accumulated Depreciation Less: Revenue Bond Payable Restricted Unrestricted Unrestricted Total 4,519,300 (1,475,000) (2,500,000) 142,000 544,300 142,000 225,680 225,680 4,519,300 (1,475,000) (2,500,000) 142,000 225,680 911,980 Preclosing closing entry Business-Type Activities Enterprise Funds Water and Sewer Operating Revenues Charges for Services Total Current Assets 1,039,000 1,039,000 Operating Expenses Cost of Sales and Services Selling Administration Depreciation Total Operating Expenses Governmental Activities Internal Service Funds $ 371,200 371,200 488,700 58,900 117,920 275,000 940,520 345,460 98,480 940 Nonoperating Expenses Interest Expense 145,500 - Change in Net Position Net Position, January 1 Net Position, December 31 (47,020) 959,000 911,980 940 126,500 127,440 Operting Income $ 9,200 15,600 370,260 $ Business-Type Activities Enterprise Funds Water and Sewer Assets Current Assets Cash Customer Accounts Receivable (Net) Due from Other Funds Inventories Total Current Assets Governmental Activities Internal Service Funds $ $ Noncurrent Assets Advance to Stores and Services Fund Restricted Assets (Cash) Capital Assets, Net of Accumulated Depreciation Total Noncurrent Assets Total Assets 74,400 74,400 158,940 56,100 3,300 8,000 67,400 Noncurrent Liabilities Revenue Bonds Payable Advance from Water Utility Fund Total Noncurrent Liabilities Total Liabilities 47,300 3,200 34,040 84,540 15,000 142,000 30,443,100 ? 30,600,100 30,878,180 Liabilities Current Liabilities Accounts Payable Payroll Taxes Payable Due to Internal Service Fund Total Current Liabilities Net Position Net Investment in Capital Assets Restricted Unrestricted Total Net Position 99,500 104,480 37,000 37,100 278,080 24,500 24,500 2,500,000 7,000 7,000 31,500 2,500,000 2,567,400 $ 544,300 142,000 225,680 911,980 67,400 $ 60,040 127,440 Business-Type Activities Enterprise Funds Water and Sewer Cash Flows from Operating Activities Cash Received from Customers and Departments Cash Paid to Suppliers and Employees Net Cash Provided by Operating Activities Governmental Activities Internal Service Funds $ $ Cash Flows from Capital Related Financing Activities Acquisition of Capital Assets Interest Paid on Long-term Debt Partial Repayment of Advance from Enterprise Fund Net Cash Used in Capital Related Financing Activities 962,000 (795,000) 167,000 360,000 (355,700) 4,300 (25,000) (162,500) (187,500) (15,000) (15,000) Cash Flows from Investing Activities Partial Receipt of Advance to Internal Service Fund Net Cash Provided from Investing Activities 15,000 15,000 27,000 27,000 Net Increase (Decrease) in Cash (5,500) 16,300 105,000 99,500 $ 31,000 47,300 $ 940 Cash and Restricted Cash, January 1 Cash and Restricted Cash, December 31 $ Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income $ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Actitities Depreciation (Increase) Decrease in Customer Accounts Receivable (Increase)Decrease in Interfund Receivables (Increase) Decrease in Inventories Increase (Decrease) in Accounts Payable Increase (Decrease) in Payroll Taxes Payable Increase (Decrease) in Interfund Liabilities Net Cash Provided by Operating Activities Non-cash investing, capital, and financing activities: 98,480 275,000 (31,480) (136,300) (9,100) (40,900) 3,300 8,000 $ 167,000 (172,500) 15,600 (3,200) (6,540) 5,500 (8,000) $ 4,300 12,000 STORES AND SERVICES INTERNAL SERVICE FUND Account Titles reference Debits Credits bb 6-C-1 2 2 CASH 27,000 4 ADVANCE FROM ENTERPRISE FUND CASH 5 OPERATING EXPENSES COST OF SALES AND SE INVENTORY SUPPLIES 6 Cash 4 bb 3 5 2 1 bb LAND 18,000 303,500 303,500 47,300 34,040 282,200 18,000 15,000 15,000 296,960 bb ACCUMULATED DEPR' BUILDINGS 33,000 bb 11,000 BUILDINGS 84,000 296,960 ENTERPRISE FUND 58,000 313,200 OTHER FUNDS REVENUES CHARGES FOR SALES AND SERVICES Operating Expenses - Cost of Sales and Services Operating Expenses - Administrative Accounts Payable 15,000 355,700 DUE FROM OTHER FUNDS 27,000 27,000 313,200 31,000 27,000 DUE FROM OTHER FUNDS 3 INVENTORY SUPPLIES A/P CASH 31,000 27,000 360,000 INVENTORY OF SUPPLIES 27,500 296,960 303,500 84,000 44,000 bb ACCUMULATED DEPR' EQUIPMENT 25,000 bb 4,600 EQUIPMENT 46,000 46,000 29,600 371,200 48,500 9,200 57,700 ACCOUNTS PAYABLE 355,700 19,000 303,500 57,700 bb 4 3 ADVANCE FROM ENTERPRISE FUND 15,000 30,000 58,000 50,000 bb NET POSITION ( beginning) 126,500 bb 360,000 50,000 310,000 Enterprise Fund Other Funds Accounts Payable Cash Operating Expenses - Depreciation Accumulated Depreciation - Building Accumulated Depreciation - Equipment 24,500 7,000 126,500 355,700 355,700 15,600 REVENUES - CHARGES FOR SALES & SERVICES 371,200 5 OPERATING EXPENSES COST OF SALES & SERVs 296,960 OPERATING EXPENSES ADMINISTRATION 9,200 OPERATING EXPENSES DEPRECIATION 15,600 11,000 4,600 371,200 296,960 Total Debits Total Credits 9,200 833,300 602,800 - 15,600 WATER AND SEWER ENTERPRISE FUND reference 6-C-2 1 2 Account Titles Customer-Accounts Receivable Due from General fund Revenues - Charges for Sales and Services CASH Debits 1,039,000 CASH 105,000 351,900 962,000 162,500 15,000 393,100 50,000 25,000 CUSTOMER ACCOUNTS RECEIVABLE bb 77,000 962,000 1,002,000 ESTIMATED UNCOLLECTIBLE ACCNTS 4,000 bb bb 5,500 3,000 DUE FROM GENERAL FUND 37,000 962,000 CASH 962,000 99,500 114,000 9,500 37,000 15,000 Advance to Supplies and Stores Fund 4 bb ### 37,000 Customer A/R 3 Credits Materials AND Supplies Inventories A/P 15,000 257,000 257,000 MATERIALS & SUPPLIES ADVANCE TO SUPPLIES WATER TREATMENT INVENTORIES AND STORES FUND PLANT bb 28,000 bb 30,000 bb 4,200,000 257,000 247,900 15,000 203,000 ACCUMULATED DEPR' - WATER PLANT 1,200,000 bb 275,000 5 6 Cost of Sales and Services Administration SELLING Construciton Work-in-progress Materials & Supplies Inventories 164,900 18,000 15,000 50,000 Cost of Sales and Services 265,800 91,400 43,900 49,300 Administration SELLING Construciton Work-in-progress Payroll Taxes Payable 6 7 8 9 247,900 351,900 Non-operating Expenses - Interest Cash 162,500 Construciton Work-in-progress Non-operating Expenses - Interest Water Treatment Plant Construciton Work-in-progress A/P Payroll Taxes Payable Cash 14 15 CONSTRUCTION IN PROCESS 203,000 50,000 203,000 49,300 17,000 bb 4,403,000 RESTRICTED ASSETS 117,000 25,000 1,475,000 ACCOUNTS PAYABLE 97,000 bb 297,900 257,000 PAYROLL TAXES PAYABLE - bb 351,900 450,400 95,200 116,300 142,000 56,100 3,300 351,900 162,500 17,000 DUE TO STORES & SERVICES FUND - bb 50,000 58,000 REVENUE BONDS PAYABLE ### bb NET POSITION ( beginning) 959,000 bb REVENUES - CHARGES FOR SALES & SERVICES 1,039,000 17,000 203,000 8,000 ### 959,000 1,039,000 203,000 8,520 5,500 3,020 297,900 95,200 OPERATING EXPENSES COST OF SALES & SERVs 164,900 265,800 58,000 OPERATING EXPENSES SELLING 15,000 43,900 488,700 58,900 OPERATING EXPENSES ADMINISTRATION 18,000 91,400 8,520 117,920 OPERATING EXPENSES DEPRECIATION 275,000 275,000 393,100 Due to Stores & Service Fund Cash 50,000 Cost of Sales and Services Due to Stores & Service Fund 13 bb 15,000 450,400 Payroll Taxes Payable Cash 10+11 ADMINISTRATIOM Estimated Uncollectible Accounts CUSTOMER A/R 12 37,100 NON- OPERATING EXPENSES INTEREST 162,500 17,000 58,000 Depreciation Accumulated Depreciation Water Plant Restricted Assets Cash 50,000 58,000 275,000 Total Debits Total Credits 6,049,920 6,049,900 145,500 - 275,000 25,000 25,000 Stores and Services Internal Service Fund Closing Entry Account Title Debits REVENUES CHARGES FOR SALES AND SERV Operating Expenses - Cost of Sales and Services Operating Expenses - Administrative Operating Expenses - Depreciation Net Position Credits 371,200 345,460 9,200 15,600 940 Net Investment in Capital Restricted Assets Net Investment in Capital Assets Capital Assets Less: Accumulated Depreciation Less: Advance from Enterprise fund Restricted Unrestricted NET POSITION 126,500 940 closing entry 127,440 Unrestricted Total 148,000 (73,600) (7,000) 67,400 Preclosing - 148,000 (73,600) (7,000) 60,040 127,440 60,040 60,040 Water and Sewer Enterprise Fund Closing Entry Account Title Revenues - Charges for Sales and Services Net Position Operating Expenses - Cost of Sales and Services Operating Expenses - Selling Operating Expenses -DEPRECIATION Operating Expenses - AADMINISTRATION Non- Operating Expenses - Interest Debits 1,039,000 47,020 Credits 488,700 58,900 275,000 117,920 145,500 NET POSITION 959,000 47,020 911,980 Net Investment in Capital Restricted Assets Net Investment in Capital Assets Capital Assets Less: Accumulated Depreciation Less: Revenue Bond Payable Restricted Unrestricted Unrestricted Total 4,519,300 (1,475,000) (2,500,000) 142,000 544,300 142,000 225,680 225,680 4,519,300 (1,475,000) (2,500,000) 142,000 225,680 911,980 Preclosing closing entry Business-Type Activities Enterprise Funds Water and Sewer Operating Revenues Charges for Services Total Current Assets 1,039,000 1,039,000 Operating Expenses Cost of Sales and Services Selling Administration Depreciation Total Operating Expenses Governmental Activities Internal Service Funds $ 371,200 371,200 488,700 58,900 117,920 275,000 940,520 345,460 98,480 940 Nonoperating Expenses Interest Expense 145,500 - Change in Net Position Net Position, January 1 Net Position, December 31 (47,020) 959,000 911,980 940 126,500 127,440 Operting Income $ 9,200 15,600 370,260 $ Business-Type Activities Enterprise Funds Water and Sewer Assets Current Assets Cash Customer Accounts Receivable (Net) Due from Other Funds Inventories Total Current Assets Governmental Activities Internal Service Funds $ $ Noncurrent Assets Advance to Stores and Services Fund Restricted Assets (Cash) Capital Assets, Net of Accumulated Depreciation Total Noncurrent Assets Total Assets 74,400 74,400 158,940 56,100 3,300 8,000 67,400 Noncurrent Liabilities Revenue Bonds Payable Advance from Water Utility Fund Total Noncurrent Liabilities Total Liabilities 47,300 3,200 34,040 84,540 15,000 142,000 30,443,100 ? 30,600,100 30,878,180 Liabilities Current Liabilities Accounts Payable Payroll Taxes Payable Due to Internal Service Fund Total Current Liabilities Net Position Net Investment in Capital Assets Restricted Unrestricted Total Net Position 99,500 104,480 37,000 37,100 278,080 24,500 24,500 2,500,000 7,000 7,000 31,500 2,500,000 2,567,400 $ 544,300 142,000 225,680 911,980 67,400 $ 60,040 127,440 Business-Type Activities Enterprise Funds Water and Sewer Cash Flows from Operating Activities Cash Received from Customers and Departments Cash Paid to Suppliers and Employees Net Cash Provided by Operating Activities Governmental Activities Internal Service Funds $ $ Cash Flows from Capital Related Financing Activities Acquisition of Capital Assets Interest Paid on Long-term Debt Partial Repayment of Advance from Enterprise Fund Net Cash Used in Capital Related Financing Activities 962,000 (795,000) 167,000 360,000 (355,700) 4,300 (25,000) (162,500) (187,500) (15,000) (15,000) Cash Flows from Investing Activities Partial Receipt of Advance to Internal Service Fund Net Cash Provided from Investing Activities 15,000 15,000 27,000 27,000 Net Increase (Decrease) in Cash (5,500) 16,300 105,000 99,500 $ 31,000 47,300 $ 940 Cash and Restricted Cash, January 1 Cash and Restricted Cash, December 31 $ Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income $ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Actitities Depreciation (Increase) Decrease in Customer Accounts Receivable (Increase)Decrease in Interfund Receivables (Increase) Decrease in Inventories Increase (Decrease) in Accounts Payable Increase (Decrease) in Payroll Taxes Payable Increase (Decrease) in Interfund Liabilities Net Cash Provided by Operating Activities Non-cash investing, capital, and financing activities: 98,480 275,000 (31,480) (136,300) (9,100) (40,900) 3,300 8,000 $ 167,000 (172,500) 15,600 (3,200) (6,540) 5,500 (8,000) $ 4,300 12,000 Refr. Account Titles Debits Gov'tal Fund Balances Credits Adjustments & Eliminations Debits A Governmental Funds Adjusted Credits Internal Service Funds Debits Balances for Gov't-wide Stmts Credits DEBITS: type credit accounts in this column Cash Cash with Fiscal Agent Investments Taxes Receivable, net Interest Receivable, net Inventories Due from State Govt. Due from Other Funds Capital Assets both rows - 830,320 928,000 259,000 274,000 16,850 580,000 - - Expenditures (expenses) Current General Govt. Public Safety Highway and Streets Sanitation Health Welfare Culture and Recreation Compensated Absences Exp Other Expenditures (expenses) - Debt Service Principal - Interest (expenditure/expense) both rows - Capital Outlay - Depreciation Other Fin. Uses - Transfers Out 830,320 928,000 259,000 274,000 16,850 - 830,320 928,000 259,000 274,000 16,850 - 580,000 580,000 - - 1,646,900 3,026,900 2,471,900 591,400 724,100 374,300 917,300 1,646,900 3,026,900 2,471,900 591,400 724,100 374,300 917,300 - 800,000 514,000 800,000 5,798,100 5,798,100 514,000 - 1,876,700 1,876,700 1,646,900 3,026,900 2,471,900 591,400 724,100 374,300 917,300 800,000 514,000 5,798,100 1,876,700 - Total Debits 21,629,770 21,629,770 Refr. Account Titles Debits Gov'tal Fund Balances Credits Adjustments & Eliminations Debits CREDITS: Accounts Payable Due to Other Funds Accrued Interest Payable Bonds Payalbe both rows Premium on Bonds Compensated Absence Payable Advance from Water Utility Fund Deferred Inflows: Property Taxes Accumulated Depreciation both rows Revenues Property Taxes Sales Taxes Interest Licenses & Permits Miscellaneous State Grant for Highway Street Expense Capital Grant- Gen Gov't Capital Grant- Public Safety 493,400 40,200 Governmental Funds Adjusted Credits Debits 493,400 40,200 - 493,400 40,200 - 27,500 - - - 27,500 - 6,657,500 2,942,000 21,220 800,000 350,000 1,072,000 332,000 1,320,000 6,657,500 2,942,000 21,220 800,000 350,000 1,072,000 332,000 1,320,000 - Total Credits Credits 27,500 - - Other Financing Sources Proceeds of Bonds Premium on Bonds Transfers In Net Position at beginning of year three rows Internal Service Funds Balances for Gov't-wide Stmts - 4,000,000 200,000 1,876,700 4,000,000 200,000 1,876,700 6,657,500 2,942,000 21,220 800,000 350,000 1,072,000 332,000 1,320,000 4,000,000 200,000 1,876,700 - 1,497,250 21,629,770 1,497,250 1,497,250 21,629,770 Program Revenues Net (Expense) Revenue and Change in Net Position Operational Capital Charges for Grants and Grants and Services Contributions Contributions Expenses Functions/Programs Governmental Activities: General Government Public Safety Highways and Streets Sanitation Health Welfare Culture and Recreation Depreciaiton Interest Compensated Absneces Total Governmental Activities Business Type Activities Water and Sewer Total Government Governmental Business-Type Activities Activities $ - $ - $ - - - $ - $ General Revenues Taxes: Property Taxes Sales Taxes Interest licenses and Permits Miscellaneous Total General Revenues Change in Net Position Net Position, Beginning Net Position, Ending - - - Total $ - $ - $ - $ - - - $ - $ - - Governmental Activities Business-Type Activities Total Assets Cash Cash with Fiscal Agents Investments Accounts Receivable (Net) Taxes Receivable (Net) Interest Receivable Internal Balances Current Due from Other Governments Inventories Internal Balances Long-Term Restricted Assets Capital Assets, Net of Accumulated Depreciation Total Assets $ $ Liabilities Accounts Payable Payroll Taxes Payable Accrued Interest Payable Revenue Bonds Payable General Obligation Bonds Payable Premium on Bonds Sold Compensated Absences Payable Total Liabilities Net Position Net Investment in Capital Assets Restricted Unrestricted Total Net Position - $ - $ - - - $ - - $ - - - $ CITY OF MONROE Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position As of December 31, 2015 Fund balances reported in governmental funds Balance Sheet Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and therefore not reported in the funds. Amount does not include capital assets of internal service funds (reported in following row). The assets and liabilities of internal service funds are included in governmental funds in the Statement of Net Position. Deferred revenue for property taxes reported in the funds but accrued as revenue in the government-wide statements and added to Net Position. Accrued interest payable is reported as a liability in the Statement of Activities; interest is not accrued in the governmental funds. Bonds payable, not due and payable in the current period are not reported in the funds. Compensated absences, not due and payable in the current period are not reported in the funds. Net Position of Governmental Activities $ - $ - CITY OF MONROE Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities For the year ended December 31, 2015 Net change in fund balances - Governmental funds Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures rather than assets Governmental funds do not report depreciation expense The net revenue of internal service funds is not reported with the governmental funds Property taxes due more than 60 days after year end is not accrued in the governmental funds. Bond proceeds are reported as other financing sources in the governmental funds but as liabilities in the government-wide statements. Repayment of bonds is reported as an expenditure in the governmental funds Interest is not accrued at year end in the governmental funds. Increases in compensated absences, not due and payable in the current period are not reported in the funds. Change in Net Position of Governmental Activities Continuous Problem - City of Monroe Chapter 8 - Government-wide Statements 8-C. Assemble the following from previous continuous problems: (1) the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances from Section 5-C; (3) the proprietary funds Statement of Net Assets and Statement of Revenues, Expenses, and Changes in Fund Net Assets from Section 6-C. Required: 1. Start a worksheet for adjustments, using the trial balance format illustrated in the text (i.e. list accounts with debit balances first, then accounts with credit balances). Enter the balances from the governmental funds financial statements prepared for Section 5-C. When doing this, follow the following guidelines: Net Assets: Use a single account for net assets (which will include the beginning balance of all fund balance accounts). Intergovernmental Revenues: When setting up the worksheet, set up separate lines for the intergovernmental revenues as follows: State Grant for Highway and Street Maintenance Operational GrantGeneral Government Capital GrantPublic Safety total $ 1,072,000 332,000 1,320,000 $2,724,000 Capital Assets: It is not necessary to set up separate lines for different classes of capital (fixed) assets or accumulated depreciation (simply use one row for Capital Assets and another for Accumulated Depreciation). Confirm that the total debits and credits equal. 2. Prepare worksheet entries and post to the worksheet for the following items. Identify each adjustment by the letter used in the problem: a. Record the January 1, 2015 balances of general fixed assets and related accumulated depreciation accounts. The City of Monroe had the following balances (excluding Internal Service Funds): Totals Cost $ 65,900,000 Accumulated Depreciation 29,800,000 b. Eliminate the capital expenditures shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. c. Depreciation expense (governmental activities) for the year totaled $ 5,750,000. 1 Continuous Problem - City of Monroe d. Eliminate the other financing sources from the sale of bonds by recording a liability for bonds payable and the related premium. e. As of January 1, 2015, the City of Monroe had $12,000,000 in general obligation bonds outstanding. f. Eliminate the expenditures for bond principal. g. Accrue interest in the amount of $328,000. (Two bond issues were outstanding; interest payments for both were last made on July 1, 2015. The computation is as follows: ($11,200,000 .03 6/12) + ($4,000,000 . 08 6/12) = $328,000). h. Adjust for the interest accrued in the prior year government-wide statements, but recorded as an expenditure in the 2015 fund basis statements, ($12,000,000 . 03 6/12) = $180,000. i. Amortize bond premium in the amount of $ 10,000. j. Make adjustments for additional revenue accrual. The only adjustment is for property taxes to eliminate the current year deferral of property taxes. k. Adjust for the $21,000 of property taxes that was deferred in 2014 and recognized as revenue in the 2015 fund-basis statements. l. Assume the City adopted a policy in 2015 of allowing employees to accumulate compensated absences. Make an adjustment accruing the expense of $ 39,500 Charge compensated absences expense. m. 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). n. No revenues from internal service funds were with external parties. Assume $3,200 of the $11,200 \"Due from Other Funds\" in the internal service accounts represents a receivable from the General Fund and the remaining $8,000 is due from the enterprise fund. Eliminate the $3,200 interfund receivables. o. Reduce governmental fund expenses by the net operating profit of internal service funds. As the amount is small, reduce general government expenses for the entire amount. p. Eliminate transfers that are between departments reported within governmental activities. 3. Prepare, in good form, a Statement of Activities for the City of Monroe for the Year Ended December 31, 2015. For purposes of this statement, assume: $ 332,000 in the General Fund is a state grant specifically to support general government programs. $ 1,072,000 in the Street and Highway Fund is an operating grant specifically for highway and street maintenance expenses. $ 1,320,000 in the City Jail Construction Fund is a capital grant that applies to public safety. Use the balances computed from the worksheet completed in part 2 for the governmental activities portion of the statement. Use the solution to P6-C (Enterprise fund) to prepare the business activities portion (net any short-term interfund payables/receivables). 2 Continuous Problem - City of Monroe 4. Prepare, in good form, a Statement of Net Assets for the City of Monroe as of December 31, 2015. Group all capital assets, net of depreciation. Include a breakdown in the Net Assets section for (a) capital assets, net of related debt, (b) restricted, and (c) unrestricted. For purposes of classifying net assets for the governmental activities, assume: For the governmental activities net assets invested in capital assets, net of related debt, the related debt includes the bonds payable, the premium on bonds payable, and the advance from the water utility fund. The special revenue fund resources are restricted by the granting agency for street and highway maintenance. These ($ 247,000) are the only restricted resources in the governmental activities. 5. Prepare the reconciliation necessary to convert from the fund balance reported in the governmental funds Balance Sheet to the net assets in the government-wide Statement of Net Assets. 6. Prepare the reconciliation necessary to convert from the change in fund balances in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the change in net assets in the government-wide Statement of Activities. Chapter 13 - Financial Statement Analysis Assemble the financial statements prepared for the City of Monroe. These financial statements will be in the solutions to Exercises 5-C, 6-C, 7-C, and 8-C. Assume a population of 25,000 and fair value of property in the amount of $360 million. Compute the following ratios, following the guidance used for the Village of Elizabeth in this chapter: (1) Financial Position - Governmental Activities (2) Financial Position - General Fund. (3) Quick Ration - Governmental Activities (4) Leverage - Primary Government (5) Debt Coverage - Enterprise Funds (6) Debt Service to Total Expenditures (7) Debt per Capital - Primary Government (8) Debt to Assessed Value of Property - Primary Government 3