8\u00e2\u0080\u0093C. Assemble the following from
\nprevious continuous problems: (1) the governmental funds Balance Sheet and
\nStatement of Revenues, Expenditures, and Changes in Fund Balances from Section
\n5\u00e2\u0080\u0093C; (3) the proprietary funds Statement of Net Assets and Statement of
\nRevenues, Expenses, and Changes in Fund Net Assets from Section 6\u00e2\u0080\u0093C.<\/p>\n
Required:<\/p>\n
Start
\n a worksheet for adjustments, using the trial balance format illustrated in
\n the text (i.e. list accounts with debit balances first, then accounts with
\n credit balances). Enter the balances from the governmental funds financial
\n statements prepared for Section 5-C. Enter debits balances as positives
\n and credit as negatives. When doing this, follow the following guidelines:<\/p>\n
Net Assets:Use
\na single account for net assets (which will include thebeginning
\nbalance of all fund balance accounts).<\/p>\n
Intergovernmental
\nRevenues:When setting up the worksheet, set up
\nseparate lines for the intergovernmental revenues as follows:<\/p>\n
State
\n Grant for Highway and Street Maintenance<\/p>\n
$ 975,000<\/p>\n
Capital
\n Grant\u00e2\u0080\u0094General Government<\/p>\n
250,000<\/p>\n
Capital
\n Grant\u00e2\u0080\u0094Public Safety<\/p>\n
250,000<\/p>\n
Grant
\n for Law Enforcement Programs<\/p>\n
288,000<\/p>\n
Capital
\nAssets:It is not necessary to set up separate
\nlines for differentclasses of fixed assets or accumulated depreciation
\n(simply use one row for Capital Assets and another for Accumulated
\nDepreciation).<\/p>\n
Confirm that the total debits and
\ncredits equal $19,237,240.<\/p>\n
2.
\nPrepare worksheet
\nentries and post to the worksheet for the following items. Identify each
\nadjustment by the letter used in the problem:<\/p>\n
a. Record
\nthe January 1, 2012 balances of general fixed assets and related accumulated
\ndepreciation accounts. The City of Everlasting Sunshine had the following
\nbalances (excluding Internal Service Funds):<\/p>\n
Accumulated<\/p>\n
Cost<\/p>\n
Depreciation<\/p>\n
Land<\/p>\n
5,125,000<\/p>\n
–<\/p>\n
Buildings<\/p>\n
30,200,000<\/p>\n
12,100,000<\/p>\n
Improvements Other than Buildings<\/p>\n
20,000,000<\/p>\n
8,200,000<\/p>\n
Equipment<\/p>\n
8,375,000<\/p>\n
4,800,000<\/p>\n
Totals<\/p>\n
63,700,000<\/p>\n
25,100,000<\/p>\n
15<\/p>\n
Continuous
\nProblem \u00e2\u0080\u0093 City of Everlasting Sunshine<\/p>\n
b. Eliminate
\nthe capital expenditures shown in the governmental funds Statement of Revenues,
\nExpenditures, and Changes in Fund Balances.
\nc.
\nDepreciation expense (governmental
\nactivities) for the year totaled $ 2,592,500.
\nd. Eliminate
\nthe other financing sources from the sale of bonds by recording a liability for
\nbonds payable and the related premium.
\ne. As of
\nJanuary 1, 2012, the City of Everlasting Sunshine had $6,000,000 in general
\nobligation bonds outstanding.
\nf.
\nEliminate the expenditures for bond
\nprincipal.
\ng.
\nAccrue interest in the amount of
\n$328,000. (Two bond issues were outstanding; interest payments for both were
\nlast made on July 1, 2012. The computation is as follows: ($5,600,000 \u00c3\u0097 .06 \u00c3\u00976\/12) +
\n($4,000,000 \u00c3\u0097. 08 \u00c3\u00976\/12) = $328,000).
\nh.
\nAdjust for the interest
\naccrued in the prior year government-wide statements, but recorded as an
\nexpenditure in the 2012 fund basis statements, ($6,000,000 \u00c3\u0097 .06<\/p>\n
\u00c3\u0097
\n6\/12) = $180,000.
\ni.
\nAmortize bond premium in the amount of
\n$2,500.
\nj. Make
\nadjustments for additional revenue accrual. The only adjustment is for property
\ntaxes to eliminate the current year deferral of property taxes.
\nk. Adjust
\nfor the $20,000 of property taxes that was deferred in 2011 and recognized as
\nrevenue in the 2012 fund-basis statements.
\nl.
\nAssume the City adopted a policy in 2012
\nof allowing employees to accumulate compensated absences. Make an adjustment
\naccruing the expense of $ 316,000 Charge compensated absences expense.
\nm. Bring
\nin the balances of the internal service fund balance sheet accounts. Again, use
\na single account for all capital assets and a second account for all
\naccumulated depreciation balances (use a separate column of the worksheet to
\nenter Internal Service Fund entries).<\/p>\n
n.
\nNo revenues from internal service funds
\nwere with external parties. Assume
\n$13,200
\nof the $21,200 \u00e2\u0080\u009cDue from Other Funds\u00e2\u0080\u009d in the internal service accounts
\nrepresents a receivable from the General Fund and the remaining $8,000 is due
\nfrom the enterprise fund. Eliminate the $13,200 interfund receivables.
\no. Reduce
\ngovernmental fund expenses by the net operating profit of internal service
\nfunds. As the amount is small, reduce general government expenses for the
\nentire amount.
\np.
\nEliminate transfers
\nthat are between departments reported within governmental activities.<\/p>\n
3. Prepare,
\nin good form, a Statement of Activities for the City of Everlasting Sunshine
\nfor the Year Ended December 31, 2012. For purposes of this statement, assume:
\n$ 288,000 in the
\nGeneral Fund is a state grant specifically for law enforcement programs.
\n$ 975,000 in the
\nStreet and Highway Fund is an operating grant specifically for certain highway
\nand street expenses.
\n$
\n500,000 in the City Hall Construction Fund is a capital grant that applies
\none-half to general government and one-half to public safety.<\/p>\n
16<\/p>\n
Continuous
\nProblem \u00e2\u0080\u0093 City of Everlasting Sunshine<\/p>\n
Use
\nthe balances computed from the worksheet completed in part 2 for the
\ngovernmental activities portion of the statement. Use the solution to P6\u00e2\u0080\u0093C
\n(Enterprise fund) to prepare the business activities portion (net any
\nshort-term interfund payables\/receivables).<\/p>\n
4. Prepare,
\nin good form, a Statement of Net Assets for the City of Everlasting Sunshine as
\nof December 31, 2012. Group all capital assets, net of depreciation. Include a
\nbreakdown in the Net Assets section for (a) capital assets, net of
\nrelated debt, (b) restricted, and (c) unrestricted. For purposes
\nof classifying net assets for the governmental activities, assume:<\/p>\n
For the
\ngovernmental activities net assets invested in capital assets, net of related
\ndebt, the related debt includes the bonds payable, the premium onbonds
\npayable, and the $20,000 advance from the water utility fund.
\nThe special revenue
\nfund resources are restricted by the granting agency for street and highway
\nmaintenance. These ($ 338,200) are the only restricted resources in the
\ngovernmental activities.<\/p>\n
5. Prepare
\nthe reconciliation necessary to convert from the fund balance reported in the
\ngovernmental funds Balance Sheet to the net assets in the government-wide
\nStatement of Net Assets.<\/p>\n
6. Prepare
\nthe reconciliation necessary to convert from the change in fund balances in the
\ngovernmental funds Statement of Revenues, Expenditures, and Changes in Fund
\nBalances to the change in net assets in the government-wide Statement of
\nActivities.<\/p>\n","protected":false},"excerpt":{"rendered":"
8\u00e2\u0080\u0093C. Assemble the following from previous continuous problems: (1) the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances from\u2026<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8827,10099,10540,10536,10892,10538,10539,10537,10891],"tags":[10549,10616,10615,7687,10627,8857,10552,10295,10548,10622,8907],"class_list":["post-130283","post","type-post","status-publish","format-standard","hentry","category-australia-essays","category-buy-essay","category-cheap-essay-writers","category-get-assignments-done","category-page-paper","category-phd-essay-writers","category-research-paper-writing-service-for-any-topic","category-study-bay-essay","category-write-my-assignment-ireland","tag-ai-plagiarism-free-essay-writing-tool","tag-australian-best-tutors","tag-best-trans-tutors","tag-buy-essay-uk","tag-cheap-dissertation-writer","tag-help-with-writing-an-essay","tag-help-write-my-paper-ai-free","tag-homework-for-you","tag-online-essay-writers","tag-phd-essays","tag-write-my-essay-for-me"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/130283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=130283"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/130283\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=130283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=130283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=130283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}