Reconciliations required to yield government-wide financial statements from fund financial statements and preparation of financial statements The City of Jackson Hole is preparing its government-wide financial statements for the year. Its accountant must prepare a number of journal entries to recognize assets and liabilities previously omitted from the fund financial statements and to recognize revenues and expenses for the year under accrual accounting that were not recognized under the current financial resources measurement focus and the modified accrual basis of accounting used to prepare the Statement of Revenues, Expenditures, and Changes in Fund Balances for its funds. a. Prepare the journal entries for the required reconciliations to recognize the following in the government-wide financial statements (all amounts in $1,000s): 1. Recognize Capital Assets of $973,320 as of the beginning of the year. 2. Record Depreciation Expense of $49,416 for the year and reverse Expenditures of $59,099 for Capital Outlays during the year. 3. Recognize $7,000 of Bonds Payable as of the beginning of the year. 4. Reverse Other Financing Sources of $2,000 and Expenditures—Debt Payments of $700 relating to increases and decreases in the bond liability during the year. 5. Reverse Deferred Revenue of $137,600 as of the beginning of the year. 6. Reverse $6,630 of Deferred Revenue recognized during the year. 7. Recognize Compensated Absences of $20,366 as of the beginning of the year and an increase in that liability of $1,968 during the year. 8. Recognize $20 of Accrued Interest Payable as of the beginning of the year and an increase in that liability of $33 during the year. 9. Recognize a liability of $27,629 relating to the City’s landfill as of the beginning of the year. The estimate for this liability did not change during the year. Journal Entries Ref. Description Debit Credit 1 2 Depreciation expense 3 4 Expenditures-debt principal payments 5 6 7 Net position 8 Net position 9 b. The City of Jackson Hole reports the following summary fund financial statements for its General Fund: Balance Sheet Statement of Revenues, Expenditures, and Changes in Fund Balances Cash 147,250 Revenues Receivables Real estate taxes $457,470 Real estate and personal property 12,240 Intergovernmental 83,538 Intergovernmental 126,577 Total revenues 541,008 Total assets 286,067 Expenditures Payables $14,485 General government 78,038 Deferred revenues 144,230 Public safety 52,026 Total liabilities 158,715 Education 312,154 Fund balances Public works 26,013 Assigned 36,270 Human services 52,026 Unassigned 91,082 Debt principal payments 700 Total fund balances 127,352 Debt interest payments 100 Total liabilities and fund balances 286,067 Total expenditures 521,057 Excess (deficiency) of revenues over expenditures 19,951 Other financing sources (uses) Proceeds from bonds 2,000 Total other financing sources (uses) 2,000 Net change in fund balances $21,951 Fund balances at beginning of year 105,401 Fund balances at end of year $127,352 Given these fund financial statements and the reconciliations in Part a, prepare the government-wide Statement of Net Position and identify the Revenues, Expenses and Change in Net Position that should be reported in the Statement of Activities for the year. Complete the worksheet below to yield the Government-Wide financial statements using the fund financial statements above and journal entries completed in part a. HINT: Use negative signs in the last column when appropriate. Balance Sheet Debit Credit Statement of Net Position Cash 147,250 Receivables: Real estate & personal property 12,240 Intergovernmental 126,577 Capital assets, net - 1 2 Total Assets 286,067 Payables $14,485 Accrued interest - Bond and notes payable - Compensated advances - Landfill closure/postclosure care costs - Deferred revenues 144,230 5 6 Total Liabilities 158,715 Fund Balance $127,352 Adjustments: 3 1 7 5 8 9 Net income adjustments calculated below Fund balance (adjusted) - Total liabilities and fund balances 286,067 Statement of Revenues, Expenditures and Changes in Fund Balances Debit Credit Statement of Activities Total revenue $541,008 Total expenditures 521,057 Adjustments: Debt principal payments Depreciation/capital outlay 2 Compensated absences 7 Interest expense 8 Total expenses Misc. adjustments Proceeds from bonds 2,000 Excess (Deficiency) of Revenues over Expenditures/Change in Net Position $21,951

Reconciliations required to yield government-wide financial statements from fund financial statements and preparation of financial statements The City of Jackson Hole is preparing its government-wide financial statements for the year. Its accountant must prepare a number of journal entries to recognize assets and liabilities previously omitted from the fund financial statements and to recognize revenues and expenses for the year under accrual accounting that were not recognized under the current financial resources measurement focus and the modified accrual basis of accounting used to prepare the Statement of Revenues, Expenditures, and Changes in Fund Balances for its funds. a. Prepare the journal entries for the required reconciliations to recognize the following in the government-wide financial statements (all amounts in $1,000s): 1. Recognize Capital Assets of $973,320 as of the beginning of the year. 2. Record Depreciation Expense of $49,416 for the year and reverse Expenditures of $59,099 for Capital Outlays during the year. 3. Recognize $7,000 of Bonds Payable as of the beginning of the year. 4. Reverse Other Financing Sources of $2,000 and Expenditures—Debt Payments of $700 relating to increases and decreases in the bond liability during the year. 5. Reverse Deferred Revenue of $137,600 as of the beginning of the year. 6. Reverse $6,630 of Deferred Revenue recognized during the year. 7. Recognize Compensated Absences of $20,366 as of the beginning of the year and an increase in that liability of $1,968 during the year. 8. Recognize $20 of Accrued Interest Payable as of the beginning of the year and an increase in that liability of $33 during the year. 9. Recognize a liability of $27,629 relating to the City’s landfill as of the beginning of the year. The estimate for this liability did not change during the year. Journal Entries Ref. Description Debit Credit 1 2 Depreciation expense 3 4 Expenditures-debt principal payments 5 6 7 Net position 8 Net position 9 b. The City of Jackson Hole reports the following summary fund financial statements for its General Fund: Balance Sheet Statement of Revenues, Expenditures, and Changes in Fund Balances Cash 147,250 Revenues Receivables Real estate taxes $457,470 Real estate and personal property 12,240 Intergovernmental 83,538 Intergovernmental 126,577 Total revenues 541,008 Total assets 286,067 Expenditures Payables $14,485 General government 78,038 Deferred revenues 144,230 Public safety 52,026 Total liabilities 158,715 Education 312,154 Fund balances Public works 26,013 Assigned 36,270 Human services 52,026 Unassigned 91,082 Debt principal payments 700 Total fund balances 127,352 Debt interest payments 100 Total liabilities and fund balances 286,067 Total expenditures 521,057 Excess (deficiency) of revenues over expenditures 19,951 Other financing sources (uses) Proceeds from bonds 2,000 Total other financing sources (uses) 2,000 Net change in fund balances $21,951 Fund balances at beginning of year 105,401 Fund balances at end of year $127,352 Given these fund financial statements and the reconciliations in Part a, prepare the government-wide Statement of Net Position and identify the Revenues, Expenses and Change in Net Position that should be reported in the Statement of Activities for the year. Complete the worksheet below to yield the Government-Wide financial statements using the fund financial statements above and journal entries completed in part a. HINT: Use negative signs in the last column when appropriate. Balance Sheet Debit Credit Statement of Net Position Cash 147,250 Receivables: Real estate & personal property 12,240 Intergovernmental 126,577 Capital assets, net - 1 2 Total Assets 286,067 Payables $14,485 Accrued interest - Bond and notes payable - Compensated advances - Landfill closure/postclosure care costs - Deferred revenues 144,230 5 6 Total Liabilities 158,715 Fund Balance $127,352 Adjustments: 3 1 7 5 8 9 Net income adjustments calculated below Fund balance (adjusted) - Total liabilities and fund balances 286,067 Statement of Revenues, Expenditures and Changes in Fund Balances Debit Credit Statement of Activities Total revenue $541,008 Total expenditures 521,057 Adjustments: Debt principal payments Depreciation/capital outlay 2 Compensated absences 7 Interest expense 8 Total expenses Misc. adjustments Proceeds from bonds 2,000 Excess (Deficiency) of Revenues over Expenditures/Change in Net Position $21,951

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

Reconciliations required to yield government-wide financial statements from fund financial statements and preparation of financial statements
The City of Jackson Hole is preparing its government-wide financial statements for the year. Its accountant must prepare a number of journal entries to recognize assets and liabilities previously omitted from the fund financial statements and to recognize revenues and expenses for the year under accrual accounting that were not recognized under the current financial resources measurement focus and the modified accrual basis of accounting used to prepare the Statement of Revenues, Expenditures, and Changes in Fund Balances for its funds.

a. Prepare the journal entries for the required reconciliations to recognize the following in the government-wide financial statements (all amounts in $1,000s):

1. Recognize Capital Assets of $973,320 as of the beginning of the year.
2. Record Depreciation Expense of $49,416 for the year and reverse Expenditures of $59,099 for Capital Outlays during the year.
3. Recognize $7,000 of Bonds Payable as of the beginning of the year.
4. Reverse Other Financing Sources of $2,000 and Expenditures—Debt Payments of $700 relating to increases and decreases in the bond liability during the year.
5. Reverse Deferred Revenue of $137,600 as of the beginning of the year.
6. Reverse $6,630 of Deferred Revenue recognized during the year.
7. Recognize Compensated Absences of $20,366 as of the beginning of the year and an increase in that liability of $1,968 during the year.
8. Recognize $20 of Accrued Interest Payable as of the beginning of the year and an increase in that liability of $33 during the year.
9. Recognize a liability of $27,629 relating to the City’s landfill as of the beginning of the year. The estimate for this liability did not change during the year.

Journal Entries
Ref.	Description	Debit	Credit
1

2	Depreciation expense


3

4

	Expenditures-debt principal payments
5

6

7	Net position


8	Net position


9

b. The City of Jackson Hole reports the following summary fund financial statements for its General Fund:

Balance Sheet
Cash				147,250		Revenues
Receivables						Real estate taxes			$457,470
Real estate and personal property	12,240	Intergovernmental			83,538
Intergovernmental		126,577		Total revenues				541,008
Total assets			286,067
							Expenditures
Payables			$14,485		General government			78,038
Deferred revenues		144,230		Public safety				52,026
Total liabilities			158,715		Education				312,154
Fund balances						Public works				26,013
Assigned			36,270		Human services			52,026
Unassigned			91,082		Debt principal payments		700
Total fund balances		127,352		Debt interest payments		100
Total liabilities and fund balances	286,067	Total expenditures			521,057
							Excess (deficiency) of revenues over expenditures		19,951
							Other financing sources (uses)
							Proceeds from bonds		2,000
							Total other financing sources (uses)	2,000
							Net change in fund balances		$21,951
							Fund balances at beginning of year	105,401
							Fund balances at end of year		$127,352

Given these fund financial statements and the reconciliations in Part a, prepare the government-wide Statement of Net Position and identify the Revenues, Expenses and Change in Net Position that should be reported in the Statement of Activities for the year.

Complete the worksheet below to yield the Government-Wide financial statements using the fund financial statements above and journal entries completed in part a.

HINT: Use negative signs in the last column when appropriate.

Balance Sheet			Debit	Credit		Statement of Net Position
Cash	147,250
Receivables:
Real estate & personal property	12,240
Intergovernmental	126,577
Capital assets, net	-	1
			2
Total Assets	286,067
Payables	$14,485
Accrued interest	-
Bond and notes payable	-
Compensated advances	-
Landfill closure/postclosure care costs	-
Deferred revenues	144,230	5
			6
Total Liabilities	158,715
Fund Balance	$127,352
Adjustments:		3			1
			7			5
			8
			9
Net income adjustments		calculated below
Fund balance (adjusted)	-
Total liabilities and fund balances	286,067
Statement of Revenues, Expenditures and Changes in Fund Balances			Debit	Credit		Statement of Activities
Total revenue	$541,008
Total expenditures	521,057
Adjustments:
Debt principal payments
Depreciation/capital outlay		2
Compensated absences		7
Interest expense		8
Total expenses
Misc. adjustments
Proceeds from bonds	2,000
Excess (Deficiency) of Revenues over Expenditures/Change in Net Position
	$21,951

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.