The fund-basis financial statements of Jefferson County have been completed for the year 2020 and appear in the first tab of the Excel spreadsheet provided with this exercise. The following information is also available:

1. Capital Assets
   • Capital assets purchased in previous years through governmental-type funds totaled $7,950,000 (net of accumulated depreciation) as of January 1.
   • Depreciation on capital assets used in governmental-type activities amounted to $327,000.
   • No capital assets were sold or disposed of and all purchases are properly reflected in the fund-basis statements as capital expenditures.
2. Long-Term Debt
   • There was no outstanding long-term debt associated with governmental-type funds as of January 1.
   • April 1, 6 percent bonds with a face value of $700,000 were issued at a premium. Bond payments are made on October 1 and April 1 of each year. Interest is based on an annual rate of 6 percent, and principal payments are $22,000 each. The first payment (interest and principal) was made on October 1.
   • Amortization of the bond premium for the current year is $1,800.
3. Deferred Inflows of Resources
   • Deferred inflows (comprised solely of property taxes) are expected to be collected more than 60 days after year-end. The balance of deferred taxes at the end of 2019 was $18,700.
4. Transfers
   • Transfers were between governmental-type funds.
5. Internal Service Fund
   • The (motor pool) internal service funds revenue is predominantly derived from departments classified as governmental-type activities.
   • There were no amounts due to the internal service fund from the General Fund. The outstanding balance of Due to Other Funds was with the enterprise fund and is not capital related.
   • The enterprise fund provided a long-term advance to the internal service fund (not capital related).

Required:

Use the Excel template provided to complete the following requirements; a separate tab is provided in Excel for each of these steps.

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