PART II. PROBLEM (80 POINTS 1. The City of South Baton Rouge maintains it bocks so as to prepar e fund accounting statements and r ecords worksheet adjustments in order to prepare government -wide s r worksheet adjustments for the ach of the following situations taterments. You are to prepare, in journal form, inflow resources- property laxes of $89,400 at the end of the previous fiscal year were recognized 8a property taxes revenue in the current's Statement of Revenues, Expenditures, and Changes in Fund Balance In addition to the expenditures recognized under modified accrual accounting, the City computed that $175.000 shculd be accrued for compensated absences and charged to public safety s actuary estmated that pension expense under the City's public safety employees' pension plan is $229,000 for the current year. The City, hewever, cnly provided $207.000 to the pension plan during the current year d. In the Statement of Revenues Expenditures, and Changes in Fund Balances, General Fund tranafers out ncluded $500,000 to a debt service fund, $600,00 to a special revenue fund, and $00,000 to an enterprise fund The Cily levied property taxes for the caurent fiscal year in the amount of 10,000.000. When making the enties, t was astirmated that 2 percent of the taxes weculd not be collected. e. Al year end, s6oo,000 of the taxes had not been colected, It was estimated that $320,00 of that aont would be colected during the 80-day perod after the and of the facal year and that $80,00 would be collected after that time. The City recognized the maximum of property taxes allowable under the modfed accrual account. General fixed assots as of the beginning of the year, which had not been recorded, were as follows: had f. B. Land S7,820,000 b. Builkdings 32,355,000 Improvement Other than Buildings 14,690.000 11,554,000 c. d. Equipment e. Accumuiated Depreciation, Capital Asse 24,300,000 For purpose of financial presentation, all capital assets are depreciated using the straight line method, with no estimated salvage value. The estimated ives are as follows: 40 years; improvements other than buildings, 20 years; and equipment 10 years. h. During the year, expenditures for capital outlays amounted to $7,200,000. Of that amount, $4,800,000 was for buildings, the remainder was for imgrovements other than buildings. These expenditures were completed at the end of the year and will begin to be depreciated next year. L In the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances, the City J. During the year, debt service expenditures for the year amounted tor interest, $580,000; principal, $400,000. k. At year-and additional general obligation bonds were issued in the amount of $1,700,000, at par reported proceeds from the sale of land in the amount of $800,000. The land originally cost $505,000 For purposes of government-wide statements, $3,600 of the bond premium should be amortized. adjustment is necessary for Interest accrual. No 3|Page