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, 2017 balances of general fixed assets and related accumulated depreciation accounts. The City of Monroe had the following balances (excluding Internal Service Funds):
Cost
Accumulated Depreciation
Totals
$ 64,200,000
28,700,000
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 $ 4,900,000.
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, 2017, 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, 2017. 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 2017 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 2016 and recognized as revenue in the 2017 fund-basis statements.
l. Assume the City adopted a policy in 2017 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.