Adjusting and Closing Entries for Governmental Activities, Government-wide Level; Preparation of Government-wide and Major Fund Financial Statements. Prior to preparing financial statements at the end of FY 2017, it is necessary to record depreciation expense for the year for governmental activities at the government-wide level.
Based on general capital assets assigned to specific functions, depreciation expense related to equipment and infrastructure is allocated to functions as shown below:
Equipment Infrastructure Buildings
General Government $705,000 $47,700
Public Safety 1,409,000 78,150
Public Works 528,000 $98,620 50,980
Culture and Recreation 351,000 32,170
A. Record depreciation expense for the year 2020 in the governmental activities general journal at the government-wide level using the following information.
B. Closing Entries. Although closing entries were made in each fund in Chapters 4 through 6 of this cumulative problem, they have not yet been recorded at the government-wide level.
Required:
Record the journal entries required on December 31, 2017 to close all temporary accounts for governmental activities at the government-wide level. These entries should also recognize changes in the accounts Net Position—Net Investment in Capital Assets, Net Position—Restricted for Public Safety (see General Fund), and Net Position—Restricted for Capital Projects(see Capital Projects Fund to calculate net position).
C. Use the exportable trial balances used in Chapters 2 through 6 of this problem, and the exportable pre-closing trial balance and post-closing trial balance for governmental activities, to prepare required government-wide and governmental fund financial statements and reconciliations that the City of Smithville must presentfor its basic financial statements to be in conformity with generally accepted accounting principles. We recommend that you use Excel to prepare these financial statements; however, your instructor may want you to do these manually.