8-C. Assemble the following from previous continuous problems: (1) the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances from Section 5-C; (3) the proprietary funds Statement of Net position andStatement of Revenues, Expenses, and Changes in Fund Net position from Section 6-C.

Prepare worksheet entries and post to the worksheet for the following items. Identify each adjustment by the letter used in the problem:

a.Record the January 1, 2020 balances of general fixed asset and related accumulated depreciation accounts. The City of Monroe had the following balances (excluding Internal Service Funds):

Cost Accumulated Depreciation

Totals $ 67,900,000 32,000,000

b.Eliminate the capital expenditures shown in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances.

c.Depreciation expense (governmental activities) for the year totaled $ 5,130,000.

d.Eliminate the other financing sources from the sale of bonds by recording a liability for bonds payable and the related premium.

e.As of January 1, 2020, the City of Monroe had $12,000,000 in general obligation bonds outstanding.

f.Eliminate the expenditures for bond principal.

g.Accrue interest in the amount of $328,000. (Two bond issues were outstanding; interest payments for both were last made on July 1, 2020. The computation is as follows: ($11,200,000 .03 6/12) + ($4,000,000 . 08 6/12) = $328,000).

h.Adjust for the interest accrued in the prior year government-wide statements, but recorded as an expenditure in the 2020 fund basis statements, ($12,000,000 .03 6/12) = $180,000.

i.Amortize bond premium in the amount of $ 10,000.

j.Make adjustments for additional revenue accrual. The only adjustment is for property taxes to eliminate the current year deferral of property taxes.

k.Adjust for the $21,000 of property taxes that was deferred in 2019 and recognized as revenue in the 2020 fund-basis statements.

l.Assume the City adopted a policy in 2020 of allowing employees to accumulate compensated absences.Make an adjustment accruing the expense of $ 42,000 Charge compensated absences expense.

m.Bring in the balances of the internal service fund balance sheet accounts. Again, use a single account for all capital assets and a second account for all accumulated depreciation balances (use a separate column of the worksheet to enter Internal Service Fund entries).

n.No revenues from internal service funds were with external parties. Assume $3,200 of the $11,200 "Due from Other Funds" in the internal service accounts represents a receivable from the General Fund and the remaining $8,000 is due from the enterprise fund. Eliminate the $3,200 interfund receivables.

o.Reduce governmental fund expenses by the net operating profit of internal service funds. As the amount is small, reduce general government expenses for the entire amount.

p.Eliminate transfers that are between departments reported within governmental activities.

Gov'tal Fund Balances

DEBITS:

Cash 541,400

Cash with Fiscal Agent 760,000

Investments 263,000

Taxes Receivable, net 457,500

Interest Receivable, net 16,850

Inventories

Due from State Govt. 557,500

Due from Other Funds

Capital Assets

both rows

Expenditures (expenses) Current

General Govt. 1,649,000

Public Safety 3,066,900

Highway and Streets 2,481,900

Sanitation 591,400

Health 724,100

Welfare 374,300

Culture and Recreation 917,300

Compensated Absences Exp

Other Expenditures (expenses)

- Debt Service Principal 800,000

- Interest (expenditure/expense) 514,000

both rows

- Capital Outlay 5,821,100

- Depreciation

Other Fin. Uses - Transfers Out 1,868,700

Total Debits 21,404,950

CREDITS:

Accounts Payable 263,800

Due to Other Funds 40,200

Accrued Interest Payable

Bonds Payalbe

both rows

Premium on Bonds

Compensated Absence Payable

Advance from Water Utility Fund

Deferred Inflows: Property Taxes 17,500

Accumulated Depreciation

both rows

Revenues

Property Taxes 6,846,000

Sales Taxes 2,938,000

Interest 18,000

Licenses & Permits 800,000

Miscellaneous 350,000

State Grant for Highway Street Expenses 1,067,500

Capital Grant- Gen Gov't 332,000

Capital Grant- Public Safety 1,335,000

Other Financing Sources

Proceeds of Bonds 4,000,000

Premium on Bonds 200,000

Transfers In 1,868,700

Net Position at beginning of year

three rows

1,328,250

Total Credits 21,404,950

CITY OF MONROE

Reconciliation of the Statement of Revenues, Expenditures and Changes

in Fund Balance to the Statement of Activities

For the year ended December 31, 2020

Net change in fund balances - Governmental funds $946,500

Amounts reported for governmental activities in the

Statement of Activities are different because:

Governmental funds report capital outlays as expenditures rather than assets

Governmental funds do not report depreciation expense

The net revenue of internal service funds is not reported with the governmental funds

Property taxes due more than 60 days after year end is not accrued in the governmental funds.

Bond proceeds are reported as other financing sources in the governmental funds but as liabilities in the government-wide statements.

Repayment of bonds is reported as an expenditure in the governmental funds

Interest is not accrued at year end in the governmental funds.

Increases in compensated absences, not due and payable in the current period are not reported in the funds.

Change in Net Position of Governmental Activities $946,500