Question
Part I Capital Assets and Bonds Payable The following information regarding capital assets and outstanding bonds payable is derived from the June 30, 2020 financial
Part I Capital Assets and Bonds Payable The following information regarding capital assets and outstanding bonds payable is derived from the June 30, 2020 financial statements prepared by the city of Dunsound, Connecticut: Capital assets: At the beginning of the fiscal year the city had capital assets of $2.213 billion; accumulated depreciation against those assets was $740 million. Capital outlays during the year were $83 million. Depreciation on the capital assets on hand at the beginning of the year and acquired during the year was $41 million. Bonds payable: Outstanding bonds payable at the beginning of the fiscal year totaled $614 million. New long term debt issued during the year totaled $247 million and bond redemptions were $113 million, so bonds payable at June 30, 2020 were $748 million. Required: Prepare worksheet journal entries needed to convert the information reported in the governmental fund financial statements for fiscal year 2020 to government-wide statements.
Part II Revenues and Deferred Revenues A municipality reported real property tax revenues of $12,388,000 in its governmental fund statement of revenues, expenditures, and changes in fund balances for the calendar year 2019. It also reported $743,000 as deferred property tax revenues in its fund balance sheet at December 31, 2019 as a result of applying the 60-day availability rule. In its 2020 governmental fund financial statements, the municipality reported property tax revenues of $12,762,000 and deferred property tax revenues of $786,000. Required: Prepare worksheet journal entries needed to convert the information reported in the governmental fund financial statements for 2020 to government-wide financial statements.
Part III Expenditures/Expenses When preparing its financial statements, a municipality records a compensated absences liability for the amount normally expected to be liquidated with expendable available resources in the General Fund. The additional long-term compensated absences liability was estimated to be $2,395,000 at December 31, 2019 and $2,431,000 at December 31, 2020. Required: Prepare the worksheet journal entry(ries) needed to convert the information reported in the governmental fund financial statements for 2020 to government-wide financial statements.
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