The fund$-$basis financial statements of the City of Cottonwood have been completed for the year $2024$ and appear in the first tab of the Excel spreadsheet provided with this exercise. In addition, the government$-$wide Statement of Net Position from the previous fiscal year is provided and should be used to determine beginning balances for accounts not appearing in the fund$-$basis statements. The following information is also available:

Capital Assets

Capital assets purchased by governmental funds are charged to capital expenditure and do not appear as assets in the fund$-$basis Balance Sheet. However, the balance is reflected in the Statement of Net Position in the government$-$wide financial statements.

Page $260$Depreciation on capital assets used in governmental$-$type activities amounted to $$2,900,000$ for the year.

No capital assets were sold or disposed of$,$ and all purchases are properly reflected in the fund$-$basis statements as capital expenditures.

Long$-$Term Debt

Proceeds from bonds issued by governmental funds are reflected in other financing sources and do not appear as liabilities in the fund$-$basis Balance Sheet. Payments of principal are recognized as expenditures when due. The balance of outstanding bonds balance is reflected in the Statement of Net Position in the government$-$wide financial statements.

Interest is recognized in the fund$-$basis statements only when payment is due. Interest accrued but not yet payable amounted to $$175,000$ at December $31,2024.$ Interest accrued for purposes of the government$-$wide statements in $2023$ has been paid and is reflected in interest expenditure in $2024.$

There are no bond discounts or premiums.

Deferred Inflows of Resources

Deferred inflows are comprised solely of property taxes expected to be collected more than $60$ days after year$-$end. The balance of deferred taxes at the end of $2023$ was $$176,500$ and was recognized as revenue in the fund$-$basis statements in $2024.$

The City accounts for its solid waste landfill in the General Fund $($public works department$).$ The estimated liability for closure and postclosure care costs as of December $31,2024,$ is $$2,800,000$ and appears only in the government$-$wide statements.

Transfers

During the year, the General Fund transferred cash to the courthouse renovation, debt service, and enterprise funds.

The City does not operate any internal service funds.

When entering amounts in the Statement of Activities, Charges for Services Revenue in the governmental funds is attributable to the following functions:

General Government $$1,156,497$

Judicial Administration $44,018$

Public Safety $275,492$

Parks and Recreation $604,359$

Community Development $51,611$

Total $$2,131,977$Page $261$

Required:

Prepare the journal entries necessary to convert the governmental fund financial statements to the accrual basis of accounting.

Post the journal entries to the conversion worksheet provided.

Prepare a government$-$wide Statement of Activities and Statement of Net Position for the year $2024.$