In: Accounting
... 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 $968,320 as of the beginning of
the year.
2. Record Depreciation Expense of $48,416 for the year and reverse
Expenditures of $58,099 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 $132,600 as of the beginning of the
year.
6. Reverse $6,630 of Deferred Revenue recognized during the
year.
7. Recognize Compensated Absences of $19,366 as of the beginning of
the year and an increase in that liability of $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 $26,629 relating to the City’s landfill
as of the beginning of the year. The estimate for this liability
did not change during the year.
ANSWER :-
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