Part EChapter 10Preparation of journal entries for government-wide financial statements and preparation of government-wide financial statements The following additional information is furnished to complete this part of the problem. 1. Croton has no activities other than governmental activities. The city's government-wide statement of net position for the year ended December 31, 2018, showed general capital assets of $14,000 and related ac- cumulated depreciation of $6,400. 2. Depreciation expense on Croton's general capital assets for 2019 (including assets acquired in 2019) was $700, all of which was applicable to public safety. 3. The city's government-wide statement of net position for the year ended December 31, 2018, showed bonds payable of $5,500. All the debt had been issued to finance capital assets. Analysis of Croton's debt service requirements showed that $700 of the total bonds payable as of December 31, 2019, should be reported as current because it is due to be paid during 2020. 4. The city's government-wide statement of net position for the year ended December 31, 2018, showed ac- crued interest payable of $120 on its outstanding long-term debt. Analysis of the city's debt service require- ments showed accrued interest payable of $135 on all outstanding long-term debt as of December 31, 2019, including the debt sold by the city during 2019. 5. Croton's government-wide statement of net position for the year ended December 31, 2018, showed accrued vacation pay of $75. Vacation leave records showed that, as of December 31, 2019, accumulated vacation leave had increased to $87, exclusive of the $10 due to be paid to retired police officers early in 2020. (As- sume vacation leave applies only to the public safety function.) Use the preceding information to do the following: a. Prepare journal entries needed to convert the governmental funds financial statements to the governmental activities columns of the government-wide financial statements. Review and make adjustments for journal entries made in Chapter 5 and Chapter 6 portions of this problem for revenues-property taxes; deferred property tax revenue; other financing sources-long-term debt issued; expenditures-capital outlay; expendituresbond principal; and transfers in and out. Then, record journal entries for 1 through 5 above. Post the journal entries to a six-column worksheet similar to that shown in Table 10-8. b. Prepare Croton City's government-wide financial statementsa statement of net position and a statement of activities. c. Prepare Croton's financial statement reconciliationsthe funds balance sheet to the government-wide statement of net position and the funds statement of revenues, expenditures, and changes in fund balances to the government-wide statement of activities. Part EChapter 10Preparation of journal entries for government-wide financial statements and preparation of government-wide financial statements The following additional information is furnished to complete this part of the problem. 1. Croton has no activities other than governmental activities. The city's government-wide statement of net position for the year ended December 31, 2018, showed general capital assets of $14,000 and related ac- cumulated depreciation of $6,400. 2. Depreciation expense on Croton's general capital assets for 2019 (including assets acquired in 2019) was $700, all of which was applicable to public safety. 3. The city's government-wide statement of net position for the year ended December 31, 2018, showed bonds payable of $5,500. All the debt had been issued to finance capital assets. Analysis of Croton's debt service requirements showed that $700 of the total bonds payable as of December 31, 2019, should be reported as current because it is due to be paid during 2020. 4. The city's government-wide statement of net position for the year ended December 31, 2018, showed ac- crued interest payable of $120 on its outstanding long-term debt. Analysis of the city's debt service require- ments showed accrued interest payable of $135 on all outstanding long-term debt as of December 31, 2019, including the debt sold by the city during 2019. 5. Croton's government-wide statement of net position for the year ended December 31, 2018, showed accrued vacation pay of $75. Vacation leave records showed that, as of December 31, 2019, accumulated vacation leave had increased to $87, exclusive of the $10 due to be paid to retired police officers early in 2020. (As- sume vacation leave applies only to the public safety function.) Use the preceding information to do the following: a. Prepare journal entries needed to convert the governmental funds financial statements to the governmental activities columns of the government-wide financial statements. Review and make adjustments for journal entries made in Chapter 5 and Chapter 6 portions of this problem for revenues-property taxes; deferred property tax revenue; other financing sources-long-term debt issued; expenditures-capital outlay; expendituresbond principal; and transfers in and out. Then, record journal entries for 1 through 5 above. Post the journal entries to a six-column worksheet similar to that shown in Table 10-8. b. Prepare Croton City's government-wide financial statementsa statement of net position and a statement of activities. c. Prepare Croton's financial statement reconciliationsthe funds balance sheet to the government-wide statement of net position and the funds statement of revenues, expenditures, and changes in fund balances to the government-wide statement of activities