Hello, I am trying to work on Chapter 4 the closing entries. I get to appropriations and the software opens the subsidiary ledger so I am confused on how to close those entries.

City of Smithville Short Version Solution Page Images for Required Trial Balances, Financial Statements and Schedules, and Reports and Analyses For use with McGraw-Hill/Irwin Accounting for Governmental & Nonprofit Entities 16th Edition By Jacqueline L. Reck, Suzanne L. Lowensohn, and Earl R. Wilson Estimated revenues after Ch. 3 budgetary entry, before any operating transactions have occurred. Appropriations balances after Ch. 3 budgetary entry, before any operating transactions have occurred. General ledger balances shown after Ch. 3 budgetary entry, before any operating transactions have occurred. City of Smithville General Fund Post-Closing Trial Balance-2014 Account Cash Taxes ReceivableDelinquent Estimated Uncollectible Delinquent Taxes Interest and Penalties Receivable on Taxes Estimated Uncollectible Interest and Penalties Due From State Government Vouchers Payable Fund BalanceRestrictedPublic Saftey Fund BalanceCommittedPublic Works Fund BalanceAssignedCulture and Recreation Fund BalanceUnassigned Totals for all accounts Debits Credits $48,660 408,906 $87,800 46,110 21,726 165,000 $668,676 106,027 15,000 29,700 56,800 351,623 $668,676 Requirement 4-b City of Smithville--Short Version General Fund Balance Sheet As of December 31, 2014 Assets Cash Taxes receivable delinquent Less: Estimated uncollectible delinquent taxes Interest and penalties receivable on taxes Less: Estimated uncollectible interest and penalties Due from state government Total Assets $ $ 408,906 87,800 46,110 21,726 Liabilities and Fund Balances Liabilities: Vouchers payable Total Liabilities Fund Balances: Restrictedpublic safety Committedpublic works Assignedculture and recreation Unassigned Total Fund Balances Total Liabilities and Fund Balances 48,660 321,106 24,384 165,000 $ 559,150 $ 106,027 106,027 15,000 29,700 56,800 351,623 453,123 $ 559,150 City of Smithville General Fund Operating Statement Account Balances For year 2014 TaxesReal Property Interest and Penalties on Taxes Licenses and Permits Fines and Forfeits Intergovernmental Revenue Charges for Services Estimated Revenues Revenues Balance Dr(Cr) Cr(Dr) Dr(Cr) $1,646,000 $1,646,090 ($90) 7,000 7,500 (500) 568,000 576,920 (8,920) 420,000 423,360 (3,360) 325,000 333,000 (8,000) 230,000 235,070 (5,070) General Government Public Safety Public Works Culture and Recreation Encumbrances Expenditures Appropriations Available Balance Dr(Cr) Dr(Cr) Cr(Dr) Cr(Dr) $3,701 $627,452 $631,600 $447 11,902 1,122,888 1,136,600 1,810 5,163 928,516 935,600 1,921 0 470,597 475,200 4,603 Requirement 4-c City of Smithville--Short Version General Fund Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended December 31, 2014 Revenues Taxes-real property Interest and penalties on taxes Licenses and permits Fines and forfeits Intergovernmental revenue Charges for services Total Revenues Expenditures General government Public safety Public works Culture and recreation Total Expenditures Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 $ 1,646,090 7,500 576,920 423,360 333,000 235,070 3,221,940 $ 627,452 1,122,888 928,516 470,597 3,149,453 72,487 380,636 $ 453,123 Requirement 4-d City of Smithville--Short Version General Fund Schedule of Revenues, Expenditures, and Changes in Fund BalanceBudget and Actual For the Year Ended December 31, 2014 Budgeted Amounts Original Final Actual Amounts Budget Basis Revenues Taxes: Taxes real property Interest and penalties on taxes Total Taxes Licenses and permits Fines and forfeits Intergovernmental revenue Charges for services Total Revenues $ 1,646,000 7,000 1,653,000 568,000 420,000 325,000 230,000 3,196,000 $ 1,646,000 7,000 1,653,000 568,000 420,000 325,000 230,000 3,196,000 $ 1,646,090 7,500 1,653,590 576,920 423,360 333,000 235,070 3,221,940 Expenditures and Encumbrances General government Public safety Public works Culture and recreation Total Expenditures Excess of Expenditures Over Revenues Increase in Encumbrances Outstanding Decrease in Fund Balances for the Year Fund Balances, January 1 Fund Balances, December 31 631,600 1,136,600 935,600 475,200 3,179,000 17,000 17,000 380,636 $ 397,636 631,600 1,136,600 935,600 475,200 3,179,000 17,000 17,000 380,636 $ 397,636 631,153 1,134,790 933,679 470,597 3,170,219 51,721 20,766 72,487 380,636 $ 453,123 Variance with Final Budget Over(Under) $ $ 90 500 590 8,920 3,360 8,000 5,070 25,940 (447) (1,810) (1,921) (4,603) (8,781) 34,721 20,766 55,487 55,487 Requirement 4-e City of Smithville--Short Version General Fund Reconciliation of Total Expenditures to Total Expenditures and Encumbrances For the Year Ended December 31, 2014 Expenditures for 2014, budgetary basis Less: Encumbrances Outstanding as of December 31, 2014 Expenditures for 2014, GAAP basis 3,170,219 20,766 $ 3,149,453 Requirement 5-c City of Smithville-Short Version Street Improvement Fund Balance Sheet As of December 31, 2014 Assets Cash Total Assets Liabilities and Fund Balances Liabilities: Fund Balances: Restricted Total Liabilities and Fund Balances $ 390,000 $ 390,000 - $ 390,000 $ 390,000 Requirement 5-d City of Smithville Street Improvement Fund Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended December 31, 2014 Revenues Sales taxes Total Revenues Expenditures Construction expendituresElm Street Project Total Expenditures Excess of Expenditures Over Revenues Other Financing Sources Proceeds of bonds Increase in Fund Balances Fund Balances, January 1 Fund Balances, December 31 $ 410,000 410,000 2,020,000 2,020,000 (1,610,000) 2,000,000 390,000 $ 390,000 City of Smithville Street Improvement Bond Debt Service Fund Post-Closing Trial Balance For year 2014 Account Debits Cash Fund BalanceRestricted Totals for all accounts Credits $28,000 $28,000 $28,000 $28,000 Requirement 6-c City of Smithville-Short Version Street Improvement Bond Debt Service Fund Balance Sheet As of December 31, 2014 Assets Cash Total Assets $ $ 28,000 28,000 Liabilities and Fund Balances Liabilities Liabilities $ - Fund Balances Restricted Total Liabilities and Fund Balances $ 28,000 28,000 Requirement 6-c City of Smithville-Short Version Street Improvement Bond Debt Service Fund Pre-Closing Trial Balance For year 2014 Account Debits Cash Budgetary Fund Balance Estimated RevenueAccrued Interest on Bonds Sold Estimated Other Financing SourcesPremium on Bonds RevenueAccrued Interest on Bonds Sold Other Financing SourcesPremium on Bonds Appropriations ExpendituresBond Interest Totals for all accounts Credits $28,000 $28,000 28,000 40,000 28,000 40,000 40,000 40,000 $136,000 $136,000 Requirement 6-c City of Smithville-Short Version Street Improvement Bond Debt Service Fund Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended December 31, 2014 Revenues Accrued interest on bonds sold Total Revenues Expenditures Bond interest Excess of Expenditures over Revenues Other Financing Sources Premium on bonds sold Total Other Financing Sources Increase in Fund Balance Fund Balances, January 1, 2014 Fund Balances, December 31, 2014 $ 28,000 28,000 40,000 (12,000) 40,000 40,000 28,000 $ 28,000 Requirement 6-c City of Smithville-Short Version Street Improvement Bond Debt Service Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual For the Year Ended December 31, 2014 Budget Revenues Accrued interest on bonds sold Total Revenues $ Expenditures Bond interest Excess of Revenues over (under) Expenditures Other Financing Sources Premium on bonds sold Total Other Financing Sources Increase in Fund Balance Fund Balance, January 1, 2014 Fund Balance, December 31, 2014 28,000 28,000 Actual $ 28,000 28,000 Actual Over (Under) Budget $ - 40,000 (12,000) $ 40,000 (12,000) - 40,000 40,000 28,000 28,000 40,000 40,000 28,000 28,000 - $ $ Requirement 6-d City of Smithville-Short Version Computation of Legal Debt Margin As of December 31, 2014 Total Assessed Valuation $ 303,035,714 Maximum general obligation debt, limited to 8% of assessed valuation Deferred serial bonds outstanding chargeable to limit Legal Debt Margin, December 31, 2014 $ 1. A restricted balance of $28,000 in the debt service fund is restricted for payment of interest on debt. An additional $8,000,000 has been authorized for issue over the next three years. $ 24,242,857 2,000,000 22,242,857 City of Smithville Governmental Activities, Government-Wide Level Post-Closing Trial Balance For year 2014 Account Debits Cash Taxes ReceivableDelinquent Estimated Uncollectible Delinquent Taxes Interest and Penalties Receivable on Taxes Estimated Uncollectible Interest and Penalties Due From State Government Land Infrastructure Accumulated DepreciationInfrastructure Buildings Accumulated DepreciationBuildings Equipment Accumulated DepreciationEquipment Vouchers Payable Accrued Interest Payable on Longterm Debt 4% Deferred Payable Serial Bonds Payable Premium on 4% Deferred Serial Bonds Payable Net PositionNet Investment in Capital Assets Net PositionRestricted for Public Safety Net PositionRestricted for Capital Projects Net PositionRestricted for Debt Service Net PositionUnrestricted Totals for all accounts Credits $466,660 408,906 $87,800 46,110 21,726 165,000 4,180,000 11,882,000 2,713,944 6,296,000 1,771,000 3,556,800 $27,001,476 1,765,480 106,027 40,000 2,000,000 38,644 17,625,732 15,000 390,000 28,000 398,123 $27,001,476 Requirement 9-c City of Smithville-Short Version Statement of Net Position As of December 31, 2014 Assets Cash Receivables, net (Note 1) Capital assets, net (Note 2) Total assets Liabilities Accounts and other payables Noncurrent liabilities Total Liabilities Net Position Net investment in capital assets Restricted for: Public safety Capital projects Debt service Unrestricted Total net position Primary Government Governmental Business-type Activities Activities Total $ 466,660 $ 466,660 510,490 510,490 19,664,376 19,664,376 20,641,526 20,641,526 146,027 2,038,644 2,184,671 146,027 2,038,644 2,184,671 17,625,732 17,625,732 15,000 390,000 28,000 398,123 $ 18,456,855 Component Units (none) 15,000 390,000 28,000 398,123 $18,456,855 Notes: 1. Receivables consist of: In Governmental Activities: Taxes Receivable - Delinquent of $408,906 and related estimated uncollectible amount of $87,800; Interest and Penalties Receivable on Taxes of $46,110 and related estimated uncollectible amount of $21,726, and Due from State Government of $165,000. 2. Net capital assets consist of: In Governmental Activities: Land $4,180,000, Infrastructure $11,882,000, less accumulated depreciation of $2,713,944; Buildings of $6,296,000, less accumulated depreciation of $1,771,000; and Equipment of $3,556,800, less accumulated depreciation of $1,765,480. Requirement 9-c City of Smithville-Short Version Statement of Activities As of December 31, 2014 Functions/Programs Governmental Activities: General government Public safety Public works Culture and recreation Interest expense Total governmental activities Business-type activities: Total primary government Expenses $ Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions 707,400 1,408,900 1,145,116 590,061 50,644 $ 1,150,380 $ 333,000 3,902,121 1,235,350 333,000 3,902,121 1,235,350 333,000 $ - 84,970 - Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business-Type Activities Activities $ 442,980 (1,075,900) (1,145,116) (505,091) (50,644) Total $ (2,333,771) 442,980 (1,075,900) (1,145,116) (505,091) (50,644) (2,333,771) (2,333,771) - (2,333,771) - 1,646,090 410,000 7,500 2,063,590 (270,181) 18,727,036 $ 18,456,855 Component Units (none) General revenues: Taxes: Real property Sales Interest and penalties on taxes Total general revenues Change in net position Net position, January 1, 2014 Net position, December 31, 2014 1,646,090 410,000 7,500 2,063,590 (270,181) 18,727,036 $ 18,456,855 $ Component Units (none) Requirement 9-c City of Smithville-Short Version Balance Sheet Governmental Funds As of December 31, 2014 Assets Cash Taxes receivable delinquent (net) Interest and penalties receivable on taxes (net) Due from state government Total Assets Liabilities and Fund Balances Liabilities: Vouchers payable Total Liabilities Fund Balances: Restricted for public safety Restricted for capital projects Restricted for debt service Committed for public works Assigned for culture and recreation Unassigned Total Fund Balances Total Liabilities and Fund Balances General $ 48,660 321,106 24,384 $ $ 165,000 559,150 Street Improvement Fund $ 390,000 Street Improvement Debt Service Fund $ 28,000 $ $ 106,027 106,027 390,000 28,000 Total Governmental Funds $ 466,660 321,106 24,384 $ $ - - 15,000 390,000 28,000 $ 29,700 56,800 351,623 453,123 559,150 $ 390,000 390,000 $ 28,000 28,000 $ 165,000 977,150 106,027 106,027 15,000 390,000 28,000 29,700 56,800 351,623 871,123 977,150 Requirement 9-c City of Smithville-Short Version Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position As of December 31, 2014 Total fund balances $ 871,123 Capital assets used in governmental activities are not financial resources and therefore are not reported in in the funds (Net of accumulated depreciation) 19,664,376 Long-term liabilities, including unamortized premium, are not due and payable in the current period and therefore are not reported in the funds (2,038,644) Accrued interest on bonds payable is not due and payable in the current period and therefore is not reported in the funds Net position of governmental activities (40,000) $ 18,456,855 Requirement 9-c City of Smithville-Short Version Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2014 General Fund Revenues Taxes-real property Taxes-sales Interest and penalties on taxes Licenses and permits Fines and forfeits Intergovernmental revenue Charges for services Accrued interest on bonds sold Total Revenues $ Street Improvement Debt Service Fund 1,646,090 Total Governmental Funds $ $ 28,000 28,000 1,646,090 410,000 7,500 576,920 423,360 333,000 235,070 28,000 3,659,940 40,000 40,000 (12,000) 627,452 1,122,888 928,516 470,597 2,020,000 40,000 5,209,453 (1,549,513) 410,000 7,500 576,920 423,360 333,000 235,070 $ 3,221,940 Expenditures General government Public safety Public works Culture and recreation Construction expenditures Interest expenditure Total Expenditures Excess of Expenditures over Revenues Other Financing Sources (Uses) Premium on bonds Proceeds of bonds Total Other Financing Sources/Uses Increase (Decrease) in Fund Balances Fund Balances, January 1, 2014 Fund Balances, December 31, 2014 Street Improvement Fund 410,000 627,452 1,122,888 928,516 470,597 2,020,000 3,149,453 72,487 2,020,000 (1,610,000) 40,000 $ 72,487 380,636 453,123 2,000,000 2,000,000 390,000 $ 390,000 $ 40,000 28,000 28,000 $ 40,000 2,000,000 2,040,000 490,487 380,636 871,123 Requirement 9-c City of Smithville-Short Version Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-wide Statement of Activities For the Year Ended December 31, 2014 Net changes in fund balancestotal governmental funds $ 490,487 Amounts reported for the governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives as depreciation expense. This includes $2,020,000 reported as construction expenditures in the capital project fund and $27,800 of equipment purchased by the General Fund and reported as expenditures 2,047,800 Depreciation expense reduces net position but has no effect on fund balances. (729,824) Bond proceeds provide current financial resources to governmental funds, but issuing debt increases longterm liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces longterm liabilities in the statement of net position. There was no repayment of bond principal during the year but new bonds were issued in this amount (including unamortized premium of $38,644) (2,038,644) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Accrued interest on serial bonds payable was reported in the statement of activities in the amount of $40,000. Change in net position of governmental activities (40,000) $ (270,181)