PLEASE SHOW ME HOW YOU GOT ANSWERS>The fund-basis financial statements of Jefferson County have been completed for the year 2020 and are available on the next tab. Using the fund financial statements and the information below, prepare the journal entries necessary to convert the governmental fund financial statements to the accrual basis of accounting.
a. Capital Assets
Reconciling entry #1: Capital assets purchased in previous years through governmental-type funds totaled $7,890,000 (net of accumulated depreciation) as of January 1.
Reconciling entry #2: Depreciation on capital assets used in governmental-type activities amounted to $316,000.
Reconciling entry #3: No capital assets were sold or disposed of and all purchases are properly reflected in the fund-basis statements as capital expenditures.
b. Long-Term Debt
Reconciling Entries #4: On April 1, 2020, 6% bonds with a face value of $700,000 were issued at face value. Bond payments are made on October 1st and April 1st of each year. The first payment (interest and principal) was made on Oct. 1. Interest was not accrued for the period Oct. 1-Dec 31 as of 12/31/2020.
c. Deferred Inflows of Resources
Reconciling Entries #5: Deferred inflows (comprised solely of property taxes) are expected to be collected more than 60 days after year-end. The balance of deferred taxes at the end of 2019 was $19,500 and was collected in 2020.