*** The following is the beginning of a string of problems I will post based off of the City of Bingham program in an Governmental Accounting course ***

{Part 1} Need help with [Para. 9a], [Para. 9b], and the "Required" portion underneath Section C.

Chapter 9 Adjusting and Closing Entries for Governmental Activities, Government-Wide Level; Preparation of Government-Wide and Major Fund Financial Statements Before the 2020 basic financial statements, both government-wide and fund, can be prepared for the City of Bingham, you must first record and post adjusting and closing entries for governmental activities as described below. a. (Para. 9a] Record depreciation expense for the year 2020 in the governmental activities general journal at the government-wide level using the following information. Verify accuracy of the adjusting entries and post to the general ledger by clicking (Post Entries). Depreciation Expense Applied to Functions: General Government $ 705,000 Public Safety 1,409,000 Public Works 528,000 Health and Welfare 351,000 Culture and Recreation 351,000 Total depreciation expense $3,344,000 Depreciation Applicable to Asset Categories (Increases in accumulated depreciation): Improvements Other Than Buildings $ 197,000 Infrastructure 639,000 Buildings 502,000 2,006,000 Equipment Total depreciation expense $3,344,000 b. [Para. 95] Provide the journal entries to reclassify the current portion of long-term debt related to the two serial bonds payable. C. Although closing entries were made in each governmental fund of this cumulative problem, they have not yet been recorded at the government-wide level. Required: Record the journal entries required on December 31, 2020, to close all temporary accounts for governmental activities at the government-wide level. These entries should also recognize changes in Net Position-Net Investment in Capital Assets and Net Position- Restricted for Debt Service. For each account to be closed or reclassified, be sure the check mark for [Closing Entry] is selected for each account being closed; "Closing Enty" appears next to the [Add credit] field. Post the closing entries to the general ledger by clicking on [Post entries). d. Use the exportable trial balances found in Chapters 2 through 7 of this problem, and the exportable pre-closing trial balance and post- closing trial balance for governmental activities, to prepare all government-wide and fund financial statements that must be presented by the City of Bingham in order for its basic financial statements to be in conformity with generally accepted accounting principles. (See the list that follows this paragraph and Illustrations 9-3 through 9-8 and Illustrations A2-1 through A2-9 of the Reck, Lowensohn, and Neely textbook for examples of these statements.) We recommend that you use Excel to prepare these financial statements; however, your instructor may require that they be prepared manually. Since the Water Utility Fund is the only fund in the proprietary funds category, you may reprint the statement of net position, statement of revenues, expenses, and changes in net position and the statement of cash flows prepared for the Water Utility Fund as the required statements for the proprietary fund basic financial statements. With suitable changes in the titles, these statements also represent Business-type Activities in the government-wide financial statements. (Note: The City of Bingham is a primary government and has no other organizations for which it is accountable as component units. Also, the FY 2021 financial information for the Investment Pool Fund is not included in any of the basic financial statements you are preparing, as the statements you are preparing pertain only to FY 2020.) Government-wide Financial Statements 1. Statement of net position 2. Statement of activities Fund Financial Statements 1. Balance sheet-governmental funds (with reconciliation of this statement to the government-wide statement of activities) 2. Statement of revenues, expenditures, and changes in fund balances-governmental funds (with reconciliation of this statement to the government-wide statement of activities) 3. Statement of net position-proprietary funds 4 Statement of revenues, expenses, and changes in fund net position-proprietary funds 5. Statement of cash flows-proprietary funds Before closing the City of Bingham it is recommended that you save a backup copy of your work to another location by clicking on [File) and (Save As) for Windows and Mac. Click on "Export my Project" if you are using the Chromebook version. Chapter 9 Adjusting and Closing Entries for Governmental Activities, Government-Wide Level; Preparation of Government-Wide and Major Fund Financial Statements Before the 2020 basic financial statements, both government-wide and fund, can be prepared for the City of Bingham, you must first record and post adjusting and closing entries for governmental activities as described below. a. (Para. 9a] Record depreciation expense for the year 2020 in the governmental activities general journal at the government-wide level using the following information. Verify accuracy of the adjusting entries and post to the general ledger by clicking (Post Entries). Depreciation Expense Applied to Functions: General Government $ 705,000 Public Safety 1,409,000 Public Works 528,000 Health and Welfare 351,000 Culture and Recreation 351,000 Total depreciation expense $3,344,000 Depreciation Applicable to Asset Categories (Increases in accumulated depreciation): Improvements Other Than Buildings $ 197,000 Infrastructure 639,000 Buildings 502,000 2,006,000 Equipment Total depreciation expense $3,344,000 b. [Para. 95] Provide the journal entries to reclassify the current portion of long-term debt related to the two serial bonds payable. C. Although closing entries were made in each governmental fund of this cumulative problem, they have not yet been recorded at the government-wide level. Required: Record the journal entries required on December 31, 2020, to close all temporary accounts for governmental activities at the government-wide level. These entries should also recognize changes in Net Position-Net Investment in Capital Assets and Net Position- Restricted for Debt Service. For each account to be closed or reclassified, be sure the check mark for [Closing Entry] is selected for each account being closed; "Closing Enty" appears next to the [Add credit] field. Post the closing entries to the general ledger by clicking on [Post entries). d. Use the exportable trial balances found in Chapters 2 through 7 of this problem, and the exportable pre-closing trial balance and post- closing trial balance for governmental activities, to prepare all government-wide and fund financial statements that must be presented by the City of Bingham in order for its basic financial statements to be in conformity with generally accepted accounting principles. (See the list that follows this paragraph and Illustrations 9-3 through 9-8 and Illustrations A2-1 through A2-9 of the Reck, Lowensohn, and Neely textbook for examples of these statements.) We recommend that you use Excel to prepare these financial statements; however, your instructor may require that they be prepared manually. Since the Water Utility Fund is the only fund in the proprietary funds category, you may reprint the statement of net position, statement of revenues, expenses, and changes in net position and the statement of cash flows prepared for the Water Utility Fund as the required statements for the proprietary fund basic financial statements. With suitable changes in the titles, these statements also represent Business-type Activities in the government-wide financial statements. (Note: The City of Bingham is a primary government and has no other organizations for which it is accountable as component units. Also, the FY 2021 financial information for the Investment Pool Fund is not included in any of the basic financial statements you are preparing, as the statements you are preparing pertain only to FY 2020.) Government-wide Financial Statements 1. Statement of net position 2. Statement of activities Fund Financial Statements 1. Balance sheet-governmental funds (with reconciliation of this statement to the government-wide statement of activities) 2. Statement of revenues, expenditures, and changes in fund balances-governmental funds (with reconciliation of this statement to the government-wide statement of activities) 3. Statement of net position-proprietary funds 4 Statement of revenues, expenses, and changes in fund net position-proprietary funds 5. Statement of cash flows-proprietary funds Before closing the City of Bingham it is recommended that you save a backup copy of your work to another location by clicking on [File) and (Save As) for Windows and Mac. Click on "Export my Project" if you are using the Chromebook version