Introduction Cardinal City is a small town in Delaware County. It has one general fund and operates a small electric cooperative. There are no component units. To complete the financial statements for its annual report, the city must prepare a government wide statement of net position and a statement of activities. The citys pre-closing trial balance is provided. As the controller for the city, you need to make select entries to appropriately close the books and complete the required financial statements. Cardinal City will maintain two funds: Fund Number Fund Name 101 General 591 Proprietary (for an electric utility) A separate worksheet tab is provided to post the working paper postings, titled as WP Postings. This is a good tab to begin to adjust for the specific entries below. Exercises Additional Entries The entries we will make for this project include: 1) Depreciation for buildings of $500,000 and infrastructure of $580,000 needs to be recorded. (Government wide impact only). All building depreciation is to be allocated to the public safety department as all other buildings are fully depreciated. The infrastructure depreciation will be charged to the general government. Working paper postings for depreciation Dr. Account #501, Fund #101, Amount $1,080 Cr. Account #175, Fund #101, Amount $500 Cr. Account #185, Fund #101, Amount $580 2) There is an interest payment that needs to be accrued on the bonds payable of $350,000. Working paper postings for interest on bonds Dr. Account #500, Fund #101, Amount $350 Cr. Account #240, Fund #101, Amount $350 3) The city leased a $100,000 emergency communications system for its police department over a period of three years with yearly payments of $36,725 with interest rate of 5.005%. The lease qualifies as a capital lease. Thus, the city, in its government-wide statements, must record an asset and a long-term lease liability. Working paper postings for the capital lease Dr. Account #190, Fund #101, Amount $100 Cr. Account #205, Fund #101, Amount $100 4) The government is starting the electric utility. At year end, it transfers $200,000 in cash to the electric utility to begin to employ the consultants and people to construct the necessary infrastructure. (This is a reclassification that is not currently included in the check figure below) Posting Post all of the working paper postings using the template located on the WP Postings worksheet tab in the Excel project file. Once all of the transactions have been posted, carefully review your data entry. The total for the working paper postings should be $25,469 after the closing entry has been posted but prior to the reclassification entry. Reports Prepare the government-wide financial statements for the fiscal year ending March 31, 2018.