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. Prepare worksheet entries and post to the worksheet for the following items. Identify each adjustment by the letter used in the problem: Record the
. Prepare worksheet entries and post to the worksheet for the following items. Identify each adjustment by the letter used in the problem:
- Record the January 1, 2020 balances of general fixed asset and related accumulated depreciation accounts. The City of Monroe had the following balances (excluding Internal Service Funds):
Cost | Accumulated Depreciation | |||||
Totals | $ | 67,900,000 | $ | 32,000,000 | ||
- Eliminate the capital expenditures shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances.
- Depreciation Expense (governmental activities) for the year totaled $5,130,000.
- Eliminate the other financing sources from the sale of bonds by recording a liability for bonds payable and the related premium.
- As of January 1, 2020, the City of Monroe had $12,000,000 in general obligation bonds outstanding.
- Eliminate the expenditures for bond principal.
- Accrue interest in the amount of $328,000. (Two bond issues were outstanding; interest payments for both were last made on July 1, 2020. The computation is as follows: ($11,200,000 0.03 6/12) + ($4,000,000 0.08 6/12) = $328,000).
- Adjust for the interest accrued in the prior year government-wide statements, but recorded as an expenditure in the 2020 fund basis statements, ($12,000,000 0.03 6/12) = $180,000.
- Amortize bond premium in the amount of $10,000.
- Make adjustments for additional revenue accrual. The only adjustment is for property taxes to eliminate the current year deferral of property taxes.
- Adjust for the $21,000 of property taxes that was deferred in 2019 and recognized as revenue in the 2020 fund-basis statements.
- Assume the City adopted a policy in 2020 of allowing employees to accumulate compensated absences. Make an adjustment accruing the expense of $42,000 Charge compensated absences expense.
- Bring in the balances of the internal service fund balance sheet accounts. Again, use a single account for all capital assets and a second account for all accumulated depreciation balances (use a separate column of the worksheet to enter Internal Service Fund entries).
- No revenues from internal service funds were with external parties. Assume $3,200 of the $11,200 Due from Other Funds in the internal service accounts represents a receivable from the General Fund and the remaining $8,000 is due from the enterprise fund. Eliminate the $3,200 interfund receivables.
- Reduce governmental fund expenses by the net operating profit of internal service funds. As the amount is small, reduce general government expenses for the entire amount.
- Eliminate transfers that are between departments reported within governmental activities.
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