The city of Saint Petersburg is planning to issue the first set of GAAP financial statements for the year ended December 31, 2021. Therefore, the city wants to establish a government-wide statement of net position for governmental activities by January 31, 2021. The city uses the economic resources measurement focus and accrual basis of accounting.

Additional information from listing below is available as of December 31, 2020:

	Saint Petersburg Balance Sheet of the combined Governmental Funds as of
			31-Dec-20
	Assets
		cash			$275,000
		Property taxes receivable			95,000
	Total Assets						$370,000
	Liabilities:
		Account Payable				$53,000
		Accrued other expenses and salaries				24,000
	Total Liabilities						$77,000
	Deferred inflows of resources						$28,000
	Fund Balance
	Unassigned						265,000
	total liabilities, deferred inflows of resources, and fund balances						$370,000

 

Other expenses: 

Accrued expenses in an amount of $24,000 include $4,000 of accrued vacation pay, which Saint Petersburg will pay early in 2021 to all retired employees. The rest of the city employees have accumulated their vacation pay of $52,000, which Saint Petersburg will pay in the future years, and no accrual has been made for the amount.

Bonds Payable:

Saint Petersburg has outstanding bonds payable in an amount of $3,600,000 as of the current year-end on December 31, 2020. The city has principal that needs to be paid in the following year in an amount of $250,000. Saint Petersburg used bonds to fund the acquisition of capital assets.

 

Interest on Long-term debt:

As of December 31, 2020, Saint Petersburg has interest stub in an amount of $40,000. The city recognizes bonds payable when it is due and payable. However, the city does not accrue interest for the year-end stub periods that will be paid early in 2021.

Property taxes: 

Saint Petersburg has property tax revenues in an amount of $28,000 on 12/31/2020, which deferred since the city expects to collection the entire amount during the first 2 months in 2021.

Capital Assets (funded by bonds):

Saint Petersburg use issued bonds to acquire all its capital assets. The records indicate that the total cost of the assets in use as of December 31, 2020, is $9,400,000. The estimated accumulated depreciation on these assets is $5,600,000.

Use above information and data to complete the following in MS Word or Excel file:

1. Prepare a six-column work sheet, providing the balances in the fund accounts, the adjusting entries, which are needed to prepare a governmental-wide statement of net position as of January 31, 2021, and the adjusted balances. Make these adjustments needed in order to complete the government-wide statement of net position and support these adjustments with journal entries (Hint: complete journal entries, reclassify the fund balance to net position, you do not need to provide statement of activities here, these adjustments to report the additional assets and liabilities will directly affect the net position).

2. Complete the statement of net position for January 31, 2021, in classified format. You must show the net position as net of related debt or as unrestricted or as invested in capital assets.

3. Complete a statement of reconciliation of the funds balance sheet to the government-wide statement of net position.