Reconciliations required to yield government-wide financial statements from fund financial statements and preparation of financial statements The City of Rowan is preparing its government-wide financial statements for the year. Its accountant must prepare a number of journal entries to recognize assets and liabilities previously omitted from the fund financial statements and to recognize revenues and expenses for the year under accrual accounting that were not recognized under the current financial resources measurement focus and the modified accrual basis of accounting used to prepare the Statement of Revenues, Expenditures, and Changes in Fund Balances for its funds. a. Prepare the journal entries for the required reconciliations to recognize the following in the government-wide financial statements (all amounts in $1,000s): 1. Recognize Capital Assets of $210,630 as of the beginning of the year. Reconciliation Spreadsheet Description Debit Credit 0 0 0 0 2. Record Depreciation Expense of $8,699 for the year and reverse Expenditures of $11,962 for Capital Outlays during the year. Depreciation expense 0 0 0 0 0 0 3. Recognize $9,000 of Bonds Payable as of the beginning of the year. 0 0 0 0 4. Reverse Other Financing Sources of $2,000 and Expenditures - Debt Payments of $700 relating to increases and decreases in the bond liability during the year. 0 0 Bondpayable 0 0 0 0 5. Reverse Deferred Revenue of $27,300 as of the beginning of the year. 0 0 0 0 6. Reverse $1,365 of Deferred Revenue recognized during the year. 0 0 0 0 7. Recognize Compensated Absences of $3,988 as of the beginning of the year and an increase in that liability of $199 during the year. Net position 0 0 0 0 0 0 0 8. Recognize $20 of Accrued Interest Payable as of the beginning of the year and an increase in that liability of $33 during the year. Net position 0 0 0 0 + 0 9. Recognize a liability of $5,482 relating to the City's landfill as of the beginning of the year. The estimate for this liability did not change during the year. 0 0 0 0 b. The City of Rowan reports the following summary fund financial statements for its General Fund: Balance Sheet General Fund Current: Cash $32,400 Receivables: Real estate and personal property 2,520 Intergovernmental 26,060 Total assets $60,980 Payables $2.982 Deferred revenues 28,665 Total liabilities 31,647 Fund balance-unassigned 29,333 $60,980 Statement of revenues, expenditures, and changes in fund balances: Total revenues-fund financial statements $111,384 Total expenditures 107,912 Other financing sources and uses: Proceeds from bonds 2,000 Net change in fund balances $5,472 Given these fund financial statements and the reconciliations in Part a, prepare the government-wide Statement of Net Position and identify the Revenues, Expenses and Change in Net Position that should be reported in the Statement of Activities for the year. Given these fund financial statements and the reconciliations in Part a, prepare the government-wide Statement of Net Position and identify the Revenues, Expenses and Change in Net Position that should be reported in the Statement of Activities for the year. HINT: Use a negative sign with your answers in the adjusted "Governmental Activities" column to indicate any reductions. Gov't Elimination Entries Governmental Statement of Net Position Activities Dr Activities Cr Assets $32,400 $ 0 Current- Cash Receivables: Real estate and personal property Intergovernmental Noncurrent: Receivables: 2,520 0 Support 26,060 0 a.1. 0 0 a.2. 0 $60,980 $ 0 Total assets Liabilities Current- Payables $2,982 $ 0 0 a.8. 0 Bond and notes payable 0 a.3. 0 0 a.4. 0 a.7. 0 a.9 0 0 Landfill closure and post-closure care costs Deferred revenues 0 28,665 a.5. a.6. Oo Liabilities Current- Payables $2,982 $ 0 0 a.8. 0 Bond and notes payable 0 a.3. 0 0 a.4. 0 a.7. 0 0 a.9 0 Landfill closure and post-closure care costs Deferred revenues 0 0 28,665 a.5. a.6. 31,647 0 0 Total liabilities Net position: Fund balance Adjustments: 29,333 0 a.3. 0 0 0 a.1. 0 a.5. a.7. 0 0 a.8. 0 0 a.9. 0 0 below 0 0 Net income adjustments Net position Check: Liabilities + Net position = Total assets 0 $ Gov't Elimination Entries Dr Cr Governmental Activities $ 0 0 a.6. 0 0 0 Statement of Revenues, Expenditures, and Changes in Fund Balances Activities Total revenues --fund financial statements 0 Adjustments: Deferred revenues Total revenues --statement of activities Total expenditures --fund statements 0 Adjustments: Debt principal payments Depreciation expense/capital outlay a.2. Compensated absences a.7. Interest expense a.8. Total expenses --statement of activities Miscellaneous adjustments: OFS --Proceeds from bonds 0 a.4. Net change in fund balances/Change in Net Position $ 0 O a.4. 0 0 a.2. 0 OO 0 0 0 0 0 0 0 0 $ 0 Reconciliations required to yield government-wide financial statements from fund financial statements and preparation of financial statements The City of Rowan is preparing its government-wide financial statements for the year. Its accountant must prepare a number of journal entries to recognize assets and liabilities previously omitted from the fund financial statements and to recognize revenues and expenses for the year under accrual accounting that were not recognized under the current financial resources measurement focus and the modified accrual basis of accounting used to prepare the Statement of Revenues, Expenditures, and Changes in Fund Balances for its funds. a. Prepare the journal entries for the required reconciliations to recognize the following in the government-wide financial statements (all amounts in $1,000s): 1. Recognize Capital Assets of $210,630 as of the beginning of the year. Reconciliation Spreadsheet Description Debit Credit 0 0 0 0 2. Record Depreciation Expense of $8,699 for the year and reverse Expenditures of $11,962 for Capital Outlays during the year. Depreciation expense 0 0 0 0 0 0 3. Recognize $9,000 of Bonds Payable as of the beginning of the year. 0 0 0 0 4. Reverse Other Financing Sources of $2,000 and Expenditures - Debt Payments of $700 relating to increases and decreases in the bond liability during the year. 0 0 Bondpayable 0 0 0 0 5. Reverse Deferred Revenue of $27,300 as of the beginning of the year. 0 0 0 0 6. Reverse $1,365 of Deferred Revenue recognized during the year. 0 0 0 0 7. Recognize Compensated Absences of $3,988 as of the beginning of the year and an increase in that liability of $199 during the year. Net position 0 0 0 0 0 0 0 8. Recognize $20 of Accrued Interest Payable as of the beginning of the year and an increase in that liability of $33 during the year. Net position 0 0 0 0 + 0 9. Recognize a liability of $5,482 relating to the City's landfill as of the beginning of the year. The estimate for this liability did not change during the year. 0 0 0 0 b. The City of Rowan reports the following summary fund financial statements for its General Fund: Balance Sheet General Fund Current: Cash $32,400 Receivables: Real estate and personal property 2,520 Intergovernmental 26,060 Total assets $60,980 Payables $2.982 Deferred revenues 28,665 Total liabilities 31,647 Fund balance-unassigned 29,333 $60,980 Statement of revenues, expenditures, and changes in fund balances: Total revenues-fund financial statements $111,384 Total expenditures 107,912 Other financing sources and uses: Proceeds from bonds 2,000 Net change in fund balances $5,472 Given these fund financial statements and the reconciliations in Part a, prepare the government-wide Statement of Net Position and identify the Revenues, Expenses and Change in Net Position that should be reported in the Statement of Activities for the year. Given these fund financial statements and the reconciliations in Part a, prepare the government-wide Statement of Net Position and identify the Revenues, Expenses and Change in Net Position that should be reported in the Statement of Activities for the year. HINT: Use a negative sign with your answers in the adjusted "Governmental Activities" column to indicate any reductions. Gov't Elimination Entries Governmental Statement of Net Position Activities Dr Activities Cr Assets $32,400 $ 0 Current- Cash Receivables: Real estate and personal property Intergovernmental Noncurrent: Receivables: 2,520 0 Support 26,060 0 a.1. 0 0 a.2. 0 $60,980 $ 0 Total assets Liabilities Current- Payables $2,982 $ 0 0 a.8. 0 Bond and notes payable 0 a.3. 0 0 a.4. 0 a.7. 0 a.9 0 0 Landfill closure and post-closure care costs Deferred revenues 0 28,665 a.5. a.6. Oo Liabilities Current- Payables $2,982 $ 0 0 a.8. 0 Bond and notes payable 0 a.3. 0 0 a.4. 0 a.7. 0 0 a.9 0 Landfill closure and post-closure care costs Deferred revenues 0 0 28,665 a.5. a.6. 31,647 0 0 Total liabilities Net position: Fund balance Adjustments: 29,333 0 a.3. 0 0 0 a.1. 0 a.5. a.7. 0 0 a.8. 0 0 a.9. 0 0 below 0 0 Net income adjustments Net position Check: Liabilities + Net position = Total assets 0 $ Gov't Elimination Entries Dr Cr Governmental Activities $ 0 0 a.6. 0 0 0 Statement of Revenues, Expenditures, and Changes in Fund Balances Activities Total revenues --fund financial statements 0 Adjustments: Deferred revenues Total revenues --statement of activities Total expenditures --fund statements 0 Adjustments: Debt principal payments Depreciation expense/capital outlay a.2. Compensated absences a.7. Interest expense a.8. Total expenses --statement of activities Miscellaneous adjustments: OFS --Proceeds from bonds 0 a.4. Net change in fund balances/Change in Net Position $ 0 O a.4. 0 0 a.2. 0 OO 0 0 0 0 0 0 0 0 $ 0