the fund-basis financial statements of Cherokee Library District (a special-purpose government engaged only in governmental activities) have been completed for the year 2017 and appear in the second and third tabs of the excel spreadsheet provided with this exercise. The following information is also available:

capital assets purchased in previous year through governmental-type funds totaled 19,700,000 and had accumulated depreciation of 5,770,00, depreciation on capital assets used in governmental-type activities amount to 426,000 for 2017. No capital assets were sold or disposed of in 2017, and all purchases are properly reflected in the fund-basis statements as capital expenditures.

Long-term debt: there were 11,000,000 of outstanding long-term notes associated with governmental-type funds as of Jan. 1, 2017. Interest is paid monthly. Dec 31, 2017, notes wit the face value of 6,370,000 were issued at par. In addition, principal payments totaled 1,340,000. the notes and any retained % on construction contracts are associated with the purchase of capital assets.

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 2016 was 95,200.

Transfers were between governmental-type funds.

Beginning net position for the government-wide statements totaled 20,107,321 as of Jan 1, 2017. this amount has already been entered in the statement of activities.

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 (shaded) Adjustment column to produce a statement of activities. You do not have to post amounts debit or credit to "(beginning ) net position" These have been reflected above. Post the journal entries to the (shaded) Adjustments column to produce a Satement of Net Position. Calculate the appropriate amount for the Net position accounts, assuming there are no restricted net position.