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 Capital assets, net 210630 Net position 210630 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 8699 0 Capital assets, net 3263 0 Expenditures--capital outlay 0 11962 0 3. Recognize $9,000 of Bonds Payable as of the beginning of the year. Net position 9000 Bondspayable 0 9000 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. Other financing sources--proceeds from bonds 2000 Bondpayable 0 1300 Expenditures--debt principal payments 0 700 0 0 5. Reverse Deferred Revenue of $27,300 as of the beginning of the year. Deferred revenues 27300 0 Net position 0 27300 6. Reverse $1,365 of Deferred Revenue recognized during the year. Deferred revenues 1365 0 0 1365 Revenues 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 3988 0 Compensated absences expense 199 0 Compensated absences 0 4187 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 20 0 Intorart oynanr 22 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. 0 Net position Interest expense Accrued interest 20 33 0 0 0 53 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. Net position 5482 0 Landfill closure and post-closure care costs 0 5482 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 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 31,647 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 Cr Activities Assets Current- Cash $32,400 $ 32400 Receivables: Real estate and personal property 2,520 2520 Intergovernmental 26,060 26060 Noncurrent: Receivables: Capital assets, net of accumulated depreciation a. 1. 210630 213893 3263 Total assets $60,980 $ 274873 Liabilities a.2 Current- Statement of Net Position Activities Dr Cr Activities Assets $32,400 $ 32400 2520 Current- Cash Receivables: Real estate and personal property Intergovernmental Noncurrent: Receivables: Capital assets, net of accumulated depreciation 2.520 26,060 26060 a. 1. 213893 210630 3263 a. 2. $60,980 $ 274873 Total assets Liabilities Current- Payables Accrued interest Bond and notes payable $2,982 $ 2982 53 10300 53 a.8. 9000 9.3. 1300 a.4. 4187 a.7. Compensated absences Landfill closure and post-closure care costs Deferred revenues 4187 5482 5482a.9 28,665 a.5 0 27300 1365 a.6. 31,647 X Total liabilities Net position: Fund balance Adjustments: 29,333 0x a.3 9000 210630a. 1. 201630 a. 3988 27300 a.5. a.8. 20 23312 -20 -5482 a.9 5482 below OX OX Net income adjustments Net position Check: Liabilities + Net position = Total assets OX Gov't Elimination Entries Dr Cr $ OX Governmental Activities $ 111384 Activities 111384 $ 1365a.6. 1365 112749 107912 107912 Statement of Revenues, Expenditures, and Changes in Fund Balances Total revenues --fund financial statements Adjustments: Deferred revenues Total revenues --statement of activities Total expenditures - fund statements Adjustments: Debt principal payments Depreciation expense/capital outlay Compensated absences Interest expense Total expenses --statement of activities Miscellaneous adjustments: OFS --Proceeds from bonds Net change in fund balances/Change in Net Position 700 a.4. -700 a.2. 0X a.2. 0X 8699 199 a.7. 199 33 a.8. . 33 0X 2000 0 2000 a.4. 5472 $ 10931 0 X OX $ 0 X Check