Accounting problem

 
 
The fund-basis financial statements of the City of Cottonwood have been completed for the year 2017 and appear in the first tab of the Excel spreadsheet provided with this exercise. In addition, the government-wide Statement of Net Position from the previous fiscal year is provided and should be used to determine beginning balances for accounts not appearing in the fund-basis statements. The following information is also available:

Capital Assets

Don't use plagiarized sources. Get Your Custom Essay on
Accounting problem
Just from $13/Page
Order Essay

Capital assets purchased by governmental funds are charged to capital expenditure and do not appear as assets in the fund-basis balance sheet. However, the balance is reflected in the Statement of Net Position in the government-wide financial statements.
page 258Depreciation on capital assets used in governmental-type activities amounted to $3,100,000 for the year.
No capital assets were sold or disposed of and all purchases are properly reflected in the fund-basis statements as capital expenditures.

Long-Term Debt

Proceeds from bonds issued by governmental funds are reflected in other financing sources and do not appear as liabilities in the fund-basis balance sheet. Payments of principal are recognized as expenditures when due. The balance of outstanding bonds balance is reflected in the Statement of Net Position in the government-wide financial statements.
Interest is recognized in the fund-basis statements only when payment is due. Interest accrued but not yet payable amounted to $167,000 at December 31, 2017. Interest accrued for purposes of the government-wide statements in 2016 has been paid and is reflected in interest expenditure in 2017.
There are no bond discounts or premiums.

Deferred Inflows of Resources

Deferred inflows are comprised solely of property taxes expected to be collected more than 60 days after year-end. The balance of deferred taxes at the end of 2016 was $188,400 and was recognized as revenue in the fund-basis statements in 2017.

The City accounts for its solid waste landfill in the General Fund (public works department). The estimated liability for closure and postclosure care costs as of December 31, 2017, is $2,600,000 and appears only in the government-wide statements.
Transfers

During the year, the General Fund transferred cash to the courthouse renovation, debt service, and enterprise funds.

The City does not operate any internal service funds.
When entering amounts in the Statement of Activities, Charges for Services Revenue in the governmental funds is attributable to the following functions:

General Government
$1,156,497
Judicial Administration
44,018
Public Safety
275,492
Parks and Recreation
604,359
Community Development
51,611
Total
$2,131,977
page 259 
Required:
Use the Excel template provided to complete the following requirements; a separate tab is provided in Excel for each of these steps.

Prepare the journal entries necessary to convert the governmental fund financial statements to the accrual basis of accounting.
Post the journal entries to the conversion worksheet provided.
Prepare a government-wide Statement of Activities and Statement of Net Position for the year 2017.

This is an involved problem, requiring many steps. Here are some hints.

Tab 1 is information to be used in the problem. You do not enter anything here.
After you make the journal entries (Tab 2), post these to the worksheet to convert to the accrual basis. This worksheet is set up so that you enter debits as positive numbers and credits as negative. After you post your entries, look at the numbers below the total credit column to see that debits equal credits. If not, you probably entered a credit as a positive number.
Make sure that total debits equal total credits in the last column (balances for government-wide statements).
When calculating Restricted Net Position, recall that permanent fund principal is added to restricted fund balances.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 25% with the discount code: COCONUTPlace Order
+
Live Chat+1(978) 822-0999EmailWhatsApp