Show transcribed image text Chapter 10 Government-Wide Financial Statements Continuing Part E-Chapter 10 Preparation of journal entries for government-wide financial statements and preparation of government-wide financial statements The following additional information is furnished to complete this part of the problem. 1. Croton has no activities other than governmental activities. The city's government-wide statement of net position for the year ended December 31, 2018, showed general capital assets of $14,000 and related ac cumulated depreciation of S6,400. 2. Depreciation expense on Croton's general capital assets for 2019 (including assets acquired in 2019) was $700, all of which was applicable to public safety 3 The city's government-wide statement of net position for the year ended December 31, 2018, showed bonds payable of $5,500. All the debt had been issued to finance capital assets. Analysis of Croton's debt service requirements showed that $700 of the total bonds payable as of December 31, 2019, should be reported as current because it is due to be paid during 2020. 4. The city's government-wide statement of net position for the year ended December 31,2018, showed ac crued interest payable of $120 on its outstanding long-term debt. Analysis of the city's debt service require- ments showed accrued interest payable of $135 on all outstanding long-term debt as of December 31, 2019 including the debt sold by the city during 2019 Croton's government-wide statement of net position for the year ended December 31, 2018, showed accrued vacation pay of $75. Vacation leave records showed that, as of December 31, 2019, accumulated vacation leave had increased to $87, exclusive of the $10 due to be paid to retired police officers early in 2020. (As sume vacation leave applies only to the public safety function 5. Use the preceding information to do the following a. Prepare journal entries needed to convert the governmental funds financial statements to the governmental activities columns of the government-wide financial statements. Review and make adjustments for journal entries made in Chapter 5 and Chapter 6 portions of this problem for revenues property taxes; deferred property tax revenue; other financing sources-long-term debt issued; expenditures capital outlay: expenditures-bond principal; and transfers in and out. Then, record journal entries for I through 5 above Post the journal entries to a six-column worksheet similar to that shown in Table 10-8 h. Prepare Croton City's government-wide financial statements-a statement of net position and a statement of activities Prepare Croton's financial statement reconciliations the funds balance sheet to the government-wide statement of net position and the funds statement of revenues, expenditures, and changes in fund balances to the government-wide statement of activities. c.