please write down the journal entries step by step.

Chapter 7 Recording Transactions Affecting the Enterprise Fund and Business-type Activities

The City of Smithville accounts for its solid waste collection and disposal activities in an enterprise fund. The balance sheet for the Solid Waste Disposal Fund as of December 31, 2016, appears below.

CITY OF SMITHVILLE

Solid Waste Disposal Fund

Post-closing Trial Balance

As of December 31, 2016

Account Title Debits Credits

Cash $ 315,000

Customer Accounts Receivable 117,100

Allowance for Doubtful Accounts $ 6,140

Due from Other Funds 6,400

Inventories 4,060

Land 600,000

Buildings 1,650,000

Accumulated Depreciation?Buildings 791,250

Equipment 1,340,400

Accumulated Depreciation?Equipment 755,640

Vouchers Payable 45,180

Due to Other Funds 12,000

Accrued Payroll and Fringe Benefits 66,720

Net Position?Net Investment in Capital Assets 2,043,510

Net Position?Unrestricted 312,520

Totals $4,032,960 $4,032,960

Required

Open a general journal as of December 31, 2016, for the Solid Waste Disposal Fund by entering each of the accounts and amounts shown in the above post-closing trial balance. Enter 2016 from the drop-down [Year] menu. Each of the account titles will be found in the drop down menu [Account (# - Description)] in the [Journal] view of the program. Be sure to enter 7-a as your paragraph number in the [Transaction Description] box and enter the appropriate paragraph number for all subsequent journal entries. Verify the accuracy of your journal entry and post it to the general ledger by clicking [Post Entries]. Unless your instructor specifies electronic submission, print a post-closing trial balance as of December 31, 2016, and retain it in your cumulative file until directed by your instructor to submit it.

Entries in this enterprise fund arenot recorded at the government-wide level since enterprise funds and business-type activities at the government-wide level both use the same (accrual) basis of accounting and same (economic resources) measurement focus. Thus, the same information recorded in the accounts of the enterprise fund can also, with only slight modification, be reported as business-type activities at the government-wide level.

Before closing the City of Smithville, click on [File], and [Save/Save As] to save your work. If you close the file by clicking on the [X] box you will be asked if you want to save your changes before closing.

Record the following events and transactions, which occurred during the year ended December 31, 2017. Be sure that 2017appears in the [Year] menu.

1. [Para. 7-b-1] Billings to customers of the Solid Waste Disposal Fund totaled $2,247,532 for the year, including $18,200 billed to City of Smithville departments accounted for in the General Fund. For the amount billed to City of Smithville departments you should debit Due from Other Funds.

1. [Para. 7-b-2] Equipment costing $335,000 was purchased on July 1, 2017. Cash in the amount of $135,000 was paid at the time of purchase; the vendor accepted revenue anticipation notes in the amount of $200,000 to finance the remainder of the equipment. Of this amount, $100,000 of the notes will be payable on July 1, 2018; the other $100,000 will be payable on July 1, 2019. All notes bear interest at the rate of 4 percent per year. (Record only the purchase and the related payment of cash and issuance of notes at this time; interest will be recorded in a later transaction.)

1. [Para. 7-b-3]Vouchers for materials and supplies to be used in the operations of the fund were issued in the total amount of $773,500 (debit Inventories).

1. [Para. 7-b-4] Collections from customers totaled $2,234,545 during 2017. This amount included $21,800 collected from the General Fund (see 7-a balance and 7-b-1 above).

1. [Para. 7-b-5] Payrolls and fringe benefits paid in cash during the year totaled $1,221,724 including the amount accrued at December 31, 2016.

1. [Para. 7-b-6] Accrued salaries and fringe benefits at year-end amounted to $66,053. Inventories of materials and supplies used in operations during the year amounted to $773,480, at cost.

1. [Para. 7-b-7] Vouchers in the amount of $778,600 and the amount Due to Other Funds were paid during the year.

1. [Para. 7-b-8] The city uses the following annual straight-line depreciation rates: Buildings, 2.5 percent; Equipment, 10 percent (equipment purchased during the year need not be depreciated because it was not held for more than 6 months of the year). Apply these rates to the original cost of buildings and equipment as of December 31, 2016, assuming no residual or salvage value.

1. [Para. 7-b-9] Interest of $4,000 had accrued on the notes payable as of year-end (see transaction 7-b-2).

1. [Para. 7-b-10] Management decided to increase the allowance for doubtful accounts by $960 at year-end.

1. After verifying the accuracy of all entries for the preceding transactions, post amounts to the general ledger accounts by clicking [Post Entries].

Prepare entries to close all operating statement accounts at the end of 2017 and to reclassify the two net position accounts, as appropriate. Be sure that the check mark for [Closing Entry] is on for each account being closed and that ?Closing Entries? appears in the [Transaction Description] box. When completed, post the closing entries to the general ledger by clicking [Post Entries].

Click on [File]-[Export] to export a post-closing trial balance for year 2017, and use Excel to prepare a statement of net position for the Solid Waste Disposal Fund as of December 31, 2017.

Click on [File]-[Export] to export a pre-closing trial balance for year 2017, and use Excel to prepare a statement of revenues, expenses, and changes in net position for the Solid Waste Disposal Fund for the year ended December 31, 2017. Interest expense should be considered a nonoperating item.

Use the post-closing trial balance for year 2016from Part a of this chapter and the trial balances from parts d and e above to prepare and save an Excel version statement of cash flows for the Solid Waste Disposal Fund for the year ended December 31, 2017.

[Note: Retain a printout of all worksheets and your financial statements in your cumulative file until directed by your instructor to submit them, unless your instructor specifies that you should submit computer files electronically,in which case you will need to save a .pdf version of you trial balances.]

Chapter 8 Recording Transactions Affecting a Fiduciary Fund?a Tax Agency Fund

The City of Smithville administers a tax agency fund that bills and collects property taxes levied by the governing bodies of the Smithville Consolidated School District (CSD), Smith County, and the Smith County Fire Protection District (FPD), in addition to those levied by the City of Smithville for its General Fund. (Note: Beginning in FY 2018, the tax agency fund will also account for property tax billing and collection for the City of Smithville?s debt service fund. That fund will not levy property taxes for FY 2017.)As permitted by state law, the City of Smithville charges a collection fee of one percent of all taxes collectedfor the other governments.

CITY OF SMITHVILLE

Tax Agency Fund

Post-closing Trial Balance

As of December 31, 2016

Account Title Debits Credits

Taxes Receivable for Other Funds and $1,977,075

Governments?Delinquent (including

related interest and penalties)

Due to Other Funds and Governments $1,977,075

Totals $1,977,075 $1,977,075

Required

Open a general journal as of December 31, 2016, for the Tax Agency Fund by entering the two accounts and amounts shown in the above post-closing trial balance. Enter 2016 from the drop-down [Year] menu. Each of the account titles will be found in the drop down menu [Account (# - Description)] in the [Journal] view of the program. Be sure to enter 8-a as your paragraph number in the [Transaction Description] box. Verify the accuracy of your journal entry and post it to the general ledger by clicking [Post Entries]. Unless your instructor specifies electronic submission, print a post-closing trial balance as of December 31, 2016 and retain it in your cumulative file until directed by your instructor to submit it.

[Note: Entries in this fund are not recorded at the government-wide level. Fiduciary activity information is reported only in the fiduciary fund statements and not at the government-wide level.]

The following schedule shows the tax rates that have been established by the various taxing authorities for fiscal year 2017.

Tax Rates Applicable to Governments

Served by the Tax Agency Fund

Fiscal Year 2017

(All amounts rounded to next higher dollar)

Tax Rate

(Per $100 Assessed Tax

Governments/Funds of Assessed Valuation) Valuation Levy

City of Smithville:

General Fund $0.55 $314,727,270 $1,731,000

Total city rate and levy $0.55 $1,731,000

Smithville CSD:

General Fund $2.40 $370,931,790 $8,902,363

Debt service fund 0.12 445,119

Total CSD rate and levy $2.52 $9,347,482

Smith County:

General Fund $0.30 $370,931,790 $1,112,796 County Road and Bridge Fund 0.32 1,186,982

Total county rate and levy $0.62 $2,299,778

Smith County FPD:

General Fund $0.95 $155,336,546 $1,475,698

Fire Station Construction Fund 0.30 466,010

Total county FPD rate and levy $1.25 $1,941,708

Grand Total tax rates and levies^* $4.94 $15,319,968

^* Note: Each property owner willreceive a tax bill equal to the tax rates of all taxing authorities that have jurisdiction over his/her property times the assessed valuation of his/her property. Shown above are the aggregate taxes levied by each government, which are also the total amounts billed by the Tax Agency Fund to all taxpayers in each jurisdiction.

Record the following transactions that occurred during 2017 in the general journal of the Tax Agency Fund.

Before closing the City of Smithville, click on [File], and [Save/Save As] to save your work. If you close the file by clicking on the [X] box you will be asked if you want to save your changes before closing.

[Para. 8-b-1] On January 2, 2017,the city?s tax administrator mailed annual tax bills to all property owners in the total amount of $15,319,968 (see preceding table). The tax administrator maintains a detailed tax ledger to track amounts billed to and collected from each taxpayer and total amounts applicable to each fund and government. You need only record the grand total amount shown in the schedule above in the general journal, as illustrated in Chapter 8 of Reck and Lowensohn.

[Para. 8-b-2] Delinquent taxes and related interest and penalties were collected during the year for the taxing authorities shown below:

Delinquent Interest and

Governments/Funds: Taxes Penalties Total

City of Smithville General Fund $ 335,000 $ 34,270 $ 369,270

Smithville CSD 722,650 57,810 780,460

Smith County 459,980 41,400 501,380

Smith County FPD 162,560 13,050 175,610

Total collected $1,680,190 $146,530 $1,826,720

Required: Record the collections of delinquent taxes and interest and penalties by recognizing specific liabilities to each fund or government. The 1 percent collection fee should be deducted from the amounts due to other governments; the total amount deducted from other governments should be added to the amount due to the City of Smithville General Fund. (Note: Round all amounts to the nearest whole dollar.) Make these entries only in the Tax Agency Fund general journal. The Tax Agency Fund records the total amount of delinquent taxes and related interest and penalties in the Taxes Receivable for Other Funds and Governments?Delinquent account. (Note: All cash receipts and collection fees were recorded in earlier chapters in the journals for the General Fund and governmental activities at the government-wide level. The collection fees, though not separately identified, were included in Revenues?Charges for Services in the General Fund and in Program Revenues?General Government?Charges for Services in governmental activities.)

[Para. 8-b-3]All cash collected in paragraph 8-b-2 was transferred to the other funds and governments in the amounts calculated, adjusted for collection fees deducted or added (see Para. 8-b-2).

[Para. 8-b-4] Current taxes were collected during the year for the funds and governments shown below:

Current Taxes

Funds/Governments: Collected

City of Smithville General Fund $1,561,535

Smithville CSD 8,412,730

Smith County 2,069,800

Smith County FPD 1,747,540

Total collected $13,791,605

Required: Record the collections of current taxes and recognize specific liabilities to each fund or government, after deducting the 1 percent collection fee from other governments and adding the total collection fee to the amount due the City of Smithville General Fund. Make these entries only in the Tax Agency Fund general journal.

[Para. 8-b-5] All cash collected in paragraph 8-b-4 was transferred to the other funds and governments, adjusted for collection fees deducted or added. (Note: For simplicity, Chapter 4 of Smithville did not address this collection of fees by the agency fund.)

6. [Para. 8-b-6]Make the year-end journal entry to reclassify all uncollected current taxes as delinquent. Add to the receivable amount interest and penalties of 4 percent on the reclassified amount (round amount to nearest whole dollar). The interest and penalties portion of the total amount should be debited to Taxes Receivable for Other Funds and Governments?Delinquent and credited to Due to Other Funds and Governments. You need only record the aggregate amounts reclassified in the general journal; the tax administrator will update the detailed tax ledger records for these reclassifications.

Post the journal entries for all the preceding transactions,and thenexport apost-closing trial balance for 2017to Excel. Use the trial balance to prepare a statement of fiduciary net position for the Tax Agency Fund (for an example of an agency fund, see the last column of Illustration A2-10 in Appendix A of Chapter 2 of the text). You should deduct $176,373 of delinquent taxes receivable and related interest and penalties receivablefrom the amounts recorded as Taxes Receivable for Other Funds and Governments?Delinquent. The same amount should be deducted from the liability account Due to Other Funds and Governments. The city?s General Fund portion of these account balances must be deducted as only the amounts applicable to other governments can be reported in a fiduciary fund statement. Taxes receivable and interest and penalties receivable that are applicable to the city itself were reported in the General Fund balance sheet that you prepared in Chapter 4 of this project.

[Note: Retain the post-closing trial balance as of December 31, 2017, and the statement of fiduciary net position in your cumulative folder, unless your instructor requests electronic submission of your documents, in which case you will need to save a .pdf version of you trial balances.]

Chapter 9 Adjusting and Closing Entries for Governmental Activities, Government-wide Level; Preparation of Government-wide and Major Fund Financial Statements

Prior to preparing financial statements at the end of FY 2017, it is necessary to record depreciation expense for the year for governmental activities at the government-wide level.

Based on general capital assets assigned to specific functions, depreciation expense related to equipment and infrastructure is allocated to functions as shown below:

Equipment Infrastructure

General Government $ 44,460

Public Safety 177,840

Public Works 115,596 $ 98,620

Health and Welfare 44,460

Culture and Recreation 62,244

Totals $444,600 $ 98,620

In addition, depreciation expense for buildings in the amount of $209,000 is allocated to functions according to the percentage of total floor space of buildings used by each function. The Public Works director has provided the following information for the current year:

Percentage of Building

Floor Space Used

General Government 20%

Public Safety 35

Public Works 22

Health and Welfare 10

Culture and Recreation 13

Total 100%

Required:[Para. 9-a] Record depreciation expense for the year 2017 in the governmental activities general journal at the government-wide level. Verify accuracy of the adjusting entries and post to the general ledger by clicking [Post Entries].

b. Closing Entries.Although closing entries were made in each fund in Chapters 4 through 6 of this cumulative problem, they have not yet been recorded at the government-wide level.

Required: Record the journal entries required on December 31, 2017, to close all temporary accounts for governmental activities at the government-wide level. These entries should also recognize changes in the accounts Net Position?Net Investment in Capital Assets,Net Position?Restricted for Public Safety (see General Fund), Net Position?Restricted for Capital Projects (see Capital Projects Fund to calculate net position), and Net Position?Restricted for Debt Service (see Debt Service Fund to calculate net position). (Note: Be sure to deduct accrued interest on long-term debt in calculating the December 31, 2017 balance of Net Position?Restricted for Debt Service.) For each account to be closed or reclassified, be sure and click on the check mark for [Closing Entry] and that ?Closing Entries? appears in the [Transaction Description]box. Post the closing entries to the general ledger by clicking on [Post Entries].

Before closing the City of Smithville, click on [File], and [Save/Save As] to save your work. If you close the file by clicking on the [X] box you will be asked if you want to save your changes before closing.

Use the exportable trial balances used in Chapters 2 through 7 of this problem and export the pre-closing trial balance and post-closing trial balance for governmental activitiesto prepare all government-wide and fund financial statements that the City of Smithville must presentfor its basic financial statements to be in conformity with generally accepted accounting principles. (See Illustrations 9-3 through 9-8 and A2-1 through A2-9 of the Reck and Lowensohntextbook for examples of these statements.) We recommend that you use Excel to prepare these financial statements; however, your instructor may want you to do these manually. Since the Solid Waste Disposal Fund is the only fund in the proprietary funds category, you may reprint the statement of net assets; statement of revenues, expenses, and changes in net assets; and the statement of cash flows prepared for the Solid Waste Disposal Fund as the required statements for the proprietary fund basic financial statements, with appropriate changes to the titles of the statements. The information for the Solid Waste Disposal Fund can also be used to complete the Business-type Activities columns of the government-wide financial statements.

[Notes: The City of Smithville is a primary government and has no other organizations for which it is accountable as component units. Also, the FY 2018 financial information for the Street Improvement Debt Service Fund is not included in any of the basic financial statements you are preparing, as the statements you are preparing pertain only to FY 2017.]

Chapter 7 Recording Transactions Affecting the Enterprise Fund and Business-type Activities The City of Smithville accounts for its solid waste collection and disposal activities in an enterprise fund. The balance sheet for the Solid Waste Disposal Fund as of December 31, 2016, appears below. CITY OF SMITHVILLE Solid Waste Disposal Fund Post-closing Trial Balance As of December 31, 2016 Account Title Cash Customer Accounts Receivable Allowance for Doubtful Accounts Due from Other Funds Inventories Land Buildings Accumulated DepreciationBuildings Equipment Accumulated DepreciationEquipment Vouchers Payable Due to Other Funds Accrued Payroll and Fringe Benefits Net PositionNet Investment in Capital Assets Net PositionUnrestricted Totals Debits $ 315,000 117,100 Credits $ 6,140 6,400 4,060 600,000 1,650,000 791,250 1,340,400 $4,032,960 755,640 45,180 12,000 66,720 2,043,510 312,520 $4,032,960 Required a. Open a general journal as of December 31, 2016, for the Solid Waste Disposal Fund by entering each of the accounts and amounts shown in the above post-closing trial balance. Enter 2016 from the drop-down [Year] menu. Each of the account titles will be found in the drop down menu [Account (# - Description)] in the [Journal] view of the program. Be sure to enter 7-a as your paragraph number in the [Transaction Description] box and enter the appropriate paragraph number for all subsequent journal entries. Verify the accuracy of your journal entry and post it to the general ledger by clicking [Post Entries]. Unless your instructor specifies electronic submission, print a post-closing trial balance as of December 31, 2016, and retain it in your cumulative file until directed by your instructor to submit it. Entries in this enterprise fund arenot recorded at the government-wide level since enterprise funds and business-type activities at the government-wide level both use the same (accrual) basis of accounting and same (economic resources) measurement focus. Thus, the same information recorded in the accounts of the enterprise fund can also, with only slight modification, be reported as business-type activities at the government-wide level. Before closing the City of Smithville, click on [File], and [Save/Save As] to save your work. If you close the file by clicking on the [X] box you will be asked if you want to save your changes before closing. b. Record the following events and transactions, which occurred during the year ended December 31, 2017. Be sure that 2017appears in the [Year] menu. 1. [Para. 7-b-1] Billings to customers of the Solid Waste Disposal Fund totaled $2,247,532 for the year, including $18,200 billed to City of Smithville departments accounted for in the General Fund. For the amount billed to City of Smithville departments you should debit Due from Other Funds. 2. [Para. 7-b-2] Equipment costing $335,000 was purchased on July 1, 2017. Cash in the amount of $135,000 was paid at the time of purchase; the vendor accepted revenue anticipation notes in the amount of $200,000 to finance the remainder of the equipment. Of this amount, $100,000 of the notes will be payable on July 1, 2018; the other $100,000 will be payable on July 1, 2019. All notes bear interest at the rate of 4 percent per year. (Record only the purchase and the related payment of cash and issuance of notes at this time; interest will be recorded in a later transaction.) 3. [Para. 7-b-3]Vouchers for materials and supplies to be used in the operations of the fund were issued in the total amount of $773,500 (debit Inventories). 4. [Para. 7-b-4] Collections from customers totaled $2,234,545 during 2017. This amount included $21,800 collected from the General Fund (see 7-a balance and 7b-1 above). 5. [Para. 7-b-5] Payrolls and fringe benefits paid in cash during the year totaled $1,221,724 including the amount accrued at December 31, 2016. 6. [Para. 7-b-6] Accrued salaries and fringe benefits at year-end amounted to $66,053. Inventories of materials and supplies used in operations during the year amounted to $773,480, at cost. 7. [Para. 7-b-7] Vouchers in the amount of $778,600 and the amount Due to Other Funds were paid during the year. 8. [Para. 7-b-8] The city uses the following annual straight-line depreciation rates: Buildings, 2.5 percent; Equipment, 10 percent (equipment purchased during the year need not be depreciated because it was not held for more than 6 months of the year). Apply these rates to the original cost of buildings and equipment as of December 31, 2016, assuming no residual or salvage value. 9. [Para. 7-b-9] Interest of $4,000 had accrued on the notes payable as of year-end (see transaction 7-b-2). 10. [Para. 7-b-10] Management decided to increase the allowance for doubtful accounts by $960 at year-end. 11. After verifying the accuracy of all entries for the preceding transactions, post amounts to the general ledger accounts by clicking [Post Entries]. c. Prepare entries to close all operating statement accounts at the end of 2017 and to reclassify the two net position accounts, as appropriate. Be sure that the check mark for [Closing Entry] is on for each account being closed and that \"Closing Entries\" appears in the [Transaction Description] box. When completed, post the closing entries to the general ledger by clicking [Post Entries]. d. Click on [File]-[Export] to export a post-closing trial balance for year 2017, and use Excel to prepare a statement of net position for the Solid Waste Disposal Fund as of December 31, 2017. e. Click on [File]-[Export] to export a pre-closing trial balance for year 2017, and use Excel to prepare a statement of revenues, expenses, and changes in net position for the Solid Waste Disposal Fund for the year ended December 31, 2017. Interest expense should be considered a nonoperating item. f. Use the post-closing trial balance for year 2016from Part a of this chapter and the trial balances from parts d and e above to prepare and save an Excel version statement of cash flows for the Solid Waste Disposal Fund for the year ended December 31, 2017. [Note: Retain a printout of all worksheets and your financial statements in your cumulative file until directed by your instructor to submit them, unless your instructor specifies that you should submit computer files electronically,in which case you will need to save a .pdf version of you trial balances.] Chapter 8 Recording Transactions Affecting a Fiduciary Funda Tax Agency Fund The City of Smithville administers a tax agency fund that bills and collects property taxes levied by the governing bodies of the Smithville Consolidated School District (CSD), Smith County, and the Smith County Fire Protection District (FPD), in addition to those levied by the City of Smithville for its General Fund. (Note: Beginning in FY 2018, the tax agency fund will also account for property tax billing and collection for the City of Smithville's debt service fund. That fund will not levy property taxes for FY 2017.)As permitted by state law, the City of Smithville charges a collection fee of one percent of all taxes collectedfor the other governments. CITY OF SMITHVILLE Tax Agency Fund Post-closing Trial Balance As of December 31, 2016 Account Title Taxes Receivable for Other Funds and GovernmentsDelinquent (including related interest and penalties) Due to Other Funds and Governments Totals Debits $1,977,075 $1,977,075 Credits $1,977,075 $1,977,075 Required a. Open a general journal as of December 31, 2016, for the Tax Agency Fund by entering the two accounts and amounts shown in the above post-closing trial balance. Enter 2016 from the drop-down [Year] menu. Each of the account titles will be found in the drop down menu [Account (# - Description)] in the [Journal] view of the program. Be sure to enter 8-a as your paragraph number in the [Transaction Description] box. Verify the accuracy of your journal entry and post it to the general ledger by clicking [Post Entries]. Unless your instructor specifies electronic submission, print a post-closing trial balance as of December 31, 2016 and retain it in your cumulative file until directed by your instructor to submit it. [Note: Entries in this fund are not recorded at the government-wide level. Fiduciary activity information is reported only in the fiduciary fund statements and not at the government-wide level.] b. The following schedule shows the tax rates that have been established by the various taxing authorities for fiscal year 2017. Tax Rates Applicable to Governments Served by the Tax Agency Fund Fiscal Year 2017 (All amounts rounded to next higher dollar) Tax Rate (Per $100 Assessed Governments/Funds of Assessed Valuation) Valuation City of Smithville: General Fund $0.55 $314,727,270 Total city rate and levy $0.55 Smithville CSD: General Fund $2.40 $370,931,790 Debt service fund 0.12 Total CSD rate and levy $2.52 Smith County: General Fund $0.30 County Road and Bridge Fund 1,186,982 Total county rate and levy $0.62 Smith County FPD: General Fund $0.95 Fire Station Construction Fund 0.30 Total county FPD rate and levy $1.25 Grand Total tax rates and levies* $4.94 * $370,931,790 0.32 Tax Levy $1,731,000 $1,731,000 $8,902,363 445,119 $9,347,482 $1,112,796 $2,299,778 $155,336,546 $1,475,698 466,010 $1,941,708 $15,319,968 Note: Each property owner willreceive a tax bill equal to the tax rates of all taxing authorities that have jurisdiction over his/her property times the assessed valuation of his/her property. Shown above are the aggregate taxes levied by each government, which are also the total amounts billed by the Tax Agency Fund to all taxpayers in each jurisdiction. Record the following transactions that occurred during 2017 in the general journal of the Tax Agency Fund. Before closing the City of Smithville, click on [File], and [Save/Save As] to save your work. If you close the file by clicking on the [X] box you will be asked if you want to save your changes before closing. 1. [Para. 8-b-1] On January 2, 2017,the city's tax administrator mailed annual tax bills to all property owners in the total amount of $15,319,968 (see preceding table). The tax administrator maintains a detailed tax ledger to track amounts billed to and collected from each taxpayer and total amounts applicable to each fund and government. You need only record the grand total amount shown in the schedule above in the general journal, as illustrated in Chapter 8 of Reck and Lowensohn. 2. [Para. 8-b-2] Delinquent taxes and related interest and penalties were collected during the year for the taxing authorities shown below: Governments/Funds: City of Smithville General Fund Smithville CSD Smith County Smith County FPD Total collected Delinquent Interest and Taxes Penalties Total $ 335,000 $ 34,270 $ 369,270 722,650 57,810 780,460 459,980 41,400 501,380 162,560 13,050 175,610 $1,680,190 $146,530 $1,826,720 Required: Record the collections of delinquent taxes and interest and penalties by recognizing specific liabilities to each fund or government. The 1 percent collection fee should be deducted from the amounts due to other governments; the total amount deducted from other governments should be added to the amount due to the City of Smithville General Fund. (Note: Round all amounts to the nearest whole dollar.) Make these entries only in the Tax Agency Fund general journal. The Tax Agency Fund records the total amount of delinquent taxes and related interest and penalties in the Taxes Receivable for Other Funds and GovernmentsDelinquent account. (Note: All cash receipts and collection fees were recorded in earlier chapters in the journals for the General Fund and governmental activities at the government-wide level. The collection fees, though not separately identified, were included in RevenuesCharges for Services in the General Fund and in Program RevenuesGeneral Government Charges for Services in governmental activities.) 3. [Para. 8-b-3]All cash collected in paragraph 8-b-2 was transferred to the other funds and governments in the amounts calculated, adjusted for collection fees deducted or added (see Para. 8-b-2). 4. [Para. 8-b-4] Current taxes were collected during the year for the funds and governments shown below: Current Taxes Funds/Governments: Collected City of Smithville General Fund $1,561,535 Smithville CSD 8,412,730 Smith County 2,069,800 Smith County FPD 1,747,540 Total collected $13,791,605 Required: Record the collections of current taxes and recognize specific liabilities to each fund or government, after deducting the 1 percent collection fee from other governments and adding the total collection fee to the amount due the City of Smithville General Fund. Make these entries only in the Tax Agency Fund general journal. 5. [Para. 8-b-5] All cash collected in paragraph 8-b-4 was transferred to the other funds and governments, adjusted for collection fees deducted or added. (Note: For simplicity, Chapter 4 of Smithville did not address this collection of fees by the agency fund.) 6. [Para. 8-b-6]Make the year-end journal entry to reclassify all uncollected current taxes as delinquent. Add to the receivable amount interest and penalties of 4 percent on the reclassified amount (round amount to nearest whole dollar). The interest and penalties portion of the total amount should be debited to Taxes Receivable for Other Funds and GovernmentsDelinquent and credited to Due to Other Funds and Governments. You need only record the aggregate amounts reclassified in the general journal; the tax administrator will update the detailed tax ledger records for these reclassifications. c. Post the journal entries for all the preceding transactions,and thenexport apost-closing trial balance for 2017to Excel. Use the trial balance to prepare a statement of fiduciary net position for the Tax Agency Fund (for an example of an agency fund, see the last column of Illustration A2-10 in Appendix A of Chapter 2 of the text). You should deduct $176,373 of delinquent taxes receivable and related interest and penalties receivablefrom the amounts recorded as Taxes Receivable for Other Funds and GovernmentsDelinquent. The same amount should be deducted from the liability account Due to Other Funds and Governments. The city's General Fund portion of these account balances must be deducted as only the amounts applicable to other governments can be reported in a fiduciary fund statement. Taxes receivable and interest and penalties receivable that are applicable to the city itself were reported in the General Fund balance sheet that you prepared in Chapter 4 of this project. [Note: Retain the post-closing trial balance as of December 31, 2017, and the statement of fiduciary net position in your cumulative folder, unless your instructor requests electronic submission of your documents, in which case you will need to save a .pdf version of you trial balances.] Chapter 9 Adjusting and Closing Entries for Governmental Activities, Government-wide Level; Preparation of Government-wide and Major Fund Financial Statements a. Prior to preparing financial statements at the end of FY 2017, it is necessary to record depreciation expense for the year for governmental activities at the government-wide level. Based on general capital assets assigned to specific functions, depreciation expense related to equipment and infrastructure is allocated to functions as shown below: General Government Public Safety Public Works Health and Welfare Culture and Recreation Totals Equipment $ 44,460 177,840 115,596 44,460 62,244 $444,600 Infrastructure $ 98,620 $ 98,620 In addition, depreciation expense for buildings in the amount of $209,000 is allocated to functions according to the percentage of total floor space of buildings used by each function. The Public Works director has provided the following information for the current year: General Government Public Safety Public Works Health and Welfare Culture and Recreation Total Percentage of Building Floor Space Used 20% 35 22 10 13 100% Required:[Para. 9-a] Record depreciation expense for the year 2017 in the governmental activities general journal at the government-wide level. Verify accuracy of the adjusting entries and post to the general ledger by clicking [Post Entries]. b. Closing Entries.Although closing entries were made in each fund in Chapters 4 through 6 of this cumulative problem, they have not yet been recorded at the government-wide level. Required: Record the journal entries required on December 31, 2017, to close all temporary accounts for governmental activities at the government-wide level. These entries should also recognize changes in the accounts Net PositionNet Investment in Capital Assets,Net PositionRestricted for Public Safety (see General Fund), Net PositionRestricted for Capital Projects (see Capital Projects Fund to calculate net position), and Net PositionRestricted for Debt Service (see Debt Service Fund to calculate net position). (Note: Be sure to deduct accrued interest on long-term debt in calculating the December 31, 2017 balance of Net PositionRestricted for Debt Service.) For each account to be closed or reclassified, be sure and click on the check mark for [Closing Entry] and that \"Closing Entries\" appears in the [Transaction Description]box. Post the closing entries to the general ledger by clicking on [Post Entries]. Before closing the City of Smithville, click on [File], and [Save/Save As] to save your work. If you close the file by clicking on the [X] box you will be asked if you want to save your changes before closing. c. Use the exportable trial balances used in Chapters 2 through 7 of this problem and export the pre-closing trial balance and post-closing trial balance for governmental activitiesto prepare all government-wide and fund financial statements that the City of Smithville must presentfor its basic financial statements to be in conformity with generally accepted accounting principles. (See Illustrations 9-3 through 9-8 and A2-1 through A2-9 of the Reck and Lowensohntextbook for examples of these statements.) We recommend that you use Excel to prepare these financial statements; however, your instructor may want you to do these manually. Since the Solid Waste Disposal Fund is the only fund in the proprietary funds category, you may reprint the statement of net assets; statement of revenues, expenses, and changes in net assets; and the statement of cash flows prepared for the Solid Waste Disposal Fund as the required statements for the proprietary fund basic financial statements, with appropriate changes to the titles of the statements. The information for the Solid Waste Disposal Fund can also be used to complete the Business-type Activities columns of the government-wide financial statements. [Notes: The City of Smithville is a primary government and has no other organizations for which it is accountable as component units. Also, the FY 2018 financial information for the Street Improvement Debt Service Fund is not included in any of the basic financial statements you are preparing, as the statements you are preparing pertain only to FY 2017.] No 7 Cash = 414,221 Accounts receivable = 133,687 Allowance for doubtful accounts = 7,100 (Cr) Inventories = $4080 Due from accounts = $2800 Land 600,000 Building = 1,650,000 Accumulated dep on building = $832500 (Cr) Equipment = 1,675,400 Accumulated depreciation on equipment = 889,680 (Cr) Vochers payable = 40,080(Cr) Duet to other funds = 12,000(Cr) Accrued payroll = 66,053 (Cr) Net position net investment in capital assets = 2,043,510 (Cr) Net position unrestricted = 312,520 (Cr) Interest payable = 4,000 (Cr) Short term notes payable = 100,000 (Cr) Long term notes payable = 100,000 (Cr) Sales revenue = 2,247,532 (Cr) Payroll expense = 1,221,057 Cost of goods sold = 773,480 Depreciation expense = 175,290 Interest expense = 4,000 Bad debt expense = 960 Total = 6,654,975 No 7 Cash = 414,221 Accounts receivable = 133,687 Allowance for doubtful accounts = 7,100 (Cr) Inventories = $4080 Due from accounts = $2800 Land 600,000 Building = 1,650,000 Accumulated dep on building = $832500 (Cr) Equipment = 1,675,400 Accumulated depreciation on equipment = 889,680 (Cr) Vochers payable = 40,080(Cr) Duet to other funds = 12,000(Cr) Accrued payroll = 66,053 (Cr) Net position net investment in capital assets = 2,043,510 (Cr) Net position unrestricted = 312,520 (Cr) Interest payable = 4,000 (Cr) Short term notes payable = 100,000 (Cr) Long term notes payable = 100,000 (Cr) Sales revenue = 2,247,532 (Cr) Payroll expense = 1,221,057 Cost of goods sold = 773,480 Depreciation expense = 175,290 Interest expense = 4,000 Bad debt expense = 960 Total = 6,654,975