There is different tabs to the file. Please complete the whole thing.

WEEK 6-CHAPTER 8 HOMEWORK ASSIGNMENT SUBMIT FOR GRADE- 20 POINTS Chapter 8 Overview: Converting the Governmental Funds to an "Accrual" Basis The author demonstrates 16 entries in the textbook. It is easier for students to rememb if they are divided into small groups of related items. To illustrate this topic, it is easier t of the conversion and eliminating worksheet entries as logically falling into 5 groups as 1. Entries necessary to incorporate fixed asset transactions, such as Property, Plant a depreciation expense, and sales/disposals of assets into the government-wide repo 2. Entries necessary to incorporate long-term debt transactions and related interest ex government-wide reporting. 3. Entries to adjust revenues and expenditures from a modified accrual basis, as repo governmental fund types (GF, SRF, DSF, CPF, PERM), to revenues and expenses as reported on the government-wide financial statements. (Items such as accrual of deferred because of 60 day rule). 4. Entries to incorporate the internal service funds into the government-wide reporting 5. Entries to eliminate interfund activity between the now combined 5 governmental fu (Operating Transfers In/Out and Due to/froms) The goal of the first 3 groups of entries is to convert the governmental funds from modified accrual basis. Once the governmental funds are on the accrual basis, then the ISF, which i on the accrual basis, is added in. Finally, all the interfund transfers, loans and interfund rec payables (Due to's/ Due from's) between the 5 governmental funds and the ISF are elimina Any interfund activity with an Enterprise fund is not eliminated, as these funds are re in a separate column on the government-wide statements. Instructions: 1. When you open the Chapter 8 homework file print the entire workbook. 2. Use the data on the tab labeled "CA and LTD data" to create your conversion entire Use the tab labeled "Journal Entries" to " HAND WRITE" your entries - using the ac Page 1 of 12 as they appear on the "Worksheet" - (Use Capital Assets - do not list separately) If title on "Worksheet" when you go to post your journal entries, the account title in yo NOTE: This is the only part of the assignment that may be handwritten - the rest M 3. On the tab labeled "Worksheet" - in the "Worksheet Adjustment Entries" columns, p dollar amount from each journal entry to the associated account in the appropriate c net journal entry amounts. Do not post amounts without an associated journal entry There should be no negative dollar amounts (unlike the worksheet in the book). 4. On the last row of the "Worksheet Adjustment Entries" columns, calculate and enter Your debits must equal your credits before you proceed to the next step. 5. Calculate and enter the "Government-wide (Accrual)" amount for each account in th The final 2 columns contain the pre-closing trial balance full accrual amounts that government-wide statements for governmental activities. Each account has either a 6. On the last row of the "Government-wide" columns, calculate and enter the total for Your debits must equal your credits before you proceed to the next step. 7. Enter the amounts from the "Government-wide" columns on the "Worksheet" to com statements on the "Government wide Stmts" tab. For comparison purposes, use th do not change descriptions or insert rows. 8. Type a coverpage with your name, date, class name, and Chapter 8 Homewor staple this to your journal entry pages, worksheet and government-wide state Page 2 of 12 SIGNMENT TS "Accrual" Basis or students to remember these entries this topic, it is easier to think alling into 5 groups as follows: h as Property, Plant and Equipment, overnment-wide reporting. and related interest expense into the accrual basis, as reported in the 5 enues and expenses on an accrual basis, ms such as accrual of interest & revenue nment-wide reporting. ed 5 governmental funds and the ISF. funds from modified accrual to the , then the ISF, which is already reported ans and interfund receivables and d the ISF are eliminated. s these funds are reported orkbook. our conversion entires. entries - using the account titles Page 3 of 12 o not list separately) If you cannot find your account he account title in your journal entry is wrong. ndwritten - the rest MUST BE typed in Excel nt Entries" columns, post each individual nt in the appropriate column. Do not combine or sociated journal entry. heet in the book). s, calculate and enter the total for each column. next step. for each account in the final 2 columns on the worksheet. ccrual amounts that are reported on the h account has either a debit balance or a credit balance. and enter the total for each column. next step. e "Worksheet" to complete the financial son purposes, use the formats provided; Chapter 8 Homework Assignment and vernment-wide statements. Page 4 of 12 The following data has been acquired from the accounting records of the City of Homerville for fiscal year ended 12/31/2014: Requirement: Prepare, in journal entry form, the worksheet entries for each of the following situations. Information on Capital Assets: 1. General Fixed Assets (Capital Assets) from prior years were as follows: Land Building Equipment Accumulated Depreciation, Capital Assets 15,000 26,000 6,500 11,200 2. During the year, expenditures for capital outlays for equipment amounted to $5,750. The government calculated depreciation for the year in the amount of $3,100. 3. In the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balance provide reported proceeds from the sale of land of $10,425. The land originally costed $8,500 Information related to Long Term Debt: 4. At the beginning of the year, bonds (general obligation bonds) were outstanding in the amount of $10,000. The unamortized bond premium at the beginning of the year was $150. 5. Additional general obligation bonds were issued during the year in the amount of $4,200, at par. 6. During the year, debt service expenditures for the year amounted to: interest, $1,550; principal, $1,000 of the government-wide statements, $15 of the bond premium should be amortized. 7. The balance of capital leases from prior years amounted to $3,600 and current year lease principal payments amounted to $360. 8. The city calculated a total liability for compensated absences of $5,500. Of this amount, $5,000 relates Additional Information: 9. At 12/31/13, interest incurred but not due was $160 and interest incurred and not due at the end of the y 10. Deferred Inflows -Property taxes at the beginning of the year were $125. At the end of the year they we 11. The City of Homerville has an internal service fund (ISF) included in their proprietary fund statements. adjustments in order to incorporate the internal service fund in the government-wide statements as Page 5 of 12 governmental activities. The Internal Service Fund statements are provided below: Internal Service Fund FYE 12/31/2014 Cash Capital Assets(net) Total Assets $ Accounts Payable Mortgage Payable Net Position Operating Revenues Operating Expenses Operating Profit Interest Expense Change in Net Position Beginning Net Position Ending Net Position 250 350 600 175 200 $ 225 $ $ 805 (720) 85 (35) 50 175 225 12. When eliminating interfund transfers in/out, eliminate the lesser of the two amounts; assume the differe Enterprise fund, which is not eliminated. 13. When eliminating interfund receivables/payables (Due from other funds/Due to other funds), eliminate the two amounts; assume the difference is for an Enterprise fund, which is not eliminated. Page 6 of 12 of the City of Homerville ch of the following situations. ed to $5,750. Changes in Fund Balance provided, the City y costed $8,500 standing in the amount of was $150. amount of $4,200, at par. nterest, $1,550; principal, $1,000. For purposes be amortized. d current year lease principal 0. Of this amount, $5,000 relates to prior years. ed and not due at the end of the year, 12/31/14 was $80. 25. At the end of the year they were $100. heir proprietary fund statements. Prepare the necessary e government-wide statements as part of the Page 7 of 12 re provided below: two amounts; assume the difference is for an ds/Due to other funds), eliminate the lesser of s not eliminated. Page 8 of 12 JE# WORKSHEET JOURNAL ENTRIES Account Titles Debits Page 9 of 12 Credits JE# WORKSHEET JOURNAL ENTRIES Account Titles Debits Page 10 of 12 Credits Worksheet to convert pre-closing trial balance amounts for the Governmental Funds to pre-closing trial balance amounts for Government-wide Governmental Activities 12/31/2014 Governmental Funds Adjustment Entries Government-wide (Modified Accrual) (Chapter 8 JEs) (Full Accrual) Debits Credits Debits Credits Debits Credits Cash 16,580 Property Taxes Receivable-delinquent (net) 800 Investments 1,300 Due from other funds 300 Supplies Inventory Capital Assets Accumulated Depreciation Accounts Payable Interest Payable Deferred Inflows-Taxes Due to other funds 900 100 175 Bonds Payable Premium on BP Capital Lease Payable Compensated Absences Payable Mortgage Payable Fund Balance at 1/1 100 Net Position @ 1/1 Revenues-Taxes Expenditures-Current Operating 5,000 16,890 Expenditures-Debt Service Principal 1,360 Expenditures-Debt Service Interest Expenditures-Capital Outlay Expenses-Depreciation Expenses-Compensated Absences 1,550 5,750 Expenses-Interest OFS-Bond Proceeds Transfers In Transfers Out 4,200 350 500 Special Item-Proceeds of land sale 10,425 Special Item-Gain on land sale Total Debits/Credits 33,140 33,140 There should not be any negative debit amounts or negative credit amounts in any of the columns (unlike the book) Page 11 of 12 Consider the following data for the governmental funds of the City of Homerville for Y/E 12/31/2014: Balance Sheet Cash Property Taxes Receivable-del(net) Investments Due from other funds Total Assets Accounts Payable Due to other funds Total Liabilities Debits 16,580 800 1,300 $ 18,680 $ Deferred Inflows Tax Revenue Unassigned Fund Balance Total liabilities and Fund Balance 100 100 - $ (2,250) (2,150) Revised Balance Sheet Cash Property Taxes Receivable-del(net) Investments Due from other funds Capital Assets(net) Total Assets Accounts Payable Interest Payable Deferred Inflows-Taxes Due to other funds Bonds payable Premium on BP Capital Lease Payable Compensated Absence Payable Mortgage Payable Total liabilities Net Position at 12/31/2014 Revised: Statement of Activities( For comparison used Statement of Revenues, Expenses and Changes in Net Position Format) Statement of Revenues, Expenditures and Changes in Fund Balance Revenues-taxes $ Expenditures-Current Operating Expenditures- Debt Service Expenditures-Capital Outlay Total Expenditures 5,000 1,550 6,550 Excess(deficiency) of Revenues over Expenditures (6,550) Other Financing Sources and Uses: Bond Proceeds Transfers In Transfers Out Total OFS/OFU Revenues-taxes Expenses-Current Operating Expenses-Depreciation Expenses- Interest Expenses Compensated Absences Total Expenses Excess(deficiency) of Revenues over Expenses Other Financing Sources and Uses: 4,200 4,200 Special Item-Land sale Change in Fund Balance Beginning Fund Balance Ending Fund Balance - - $ (2,350) 100 (2,250) Transfers In Transfers Out Total OFS/OFU Special Item-Gain on Land sale Change in Net Position Beginning Net Position Ending Net Position Page 12 of 12