Question

Reconciliations required to yield government-wide financial statements from fund financial statements and preparation o financial statements...

Reconciliations required to yield government-wide financial statements from fund financial statements and preparation o financial statements
The City of Bar Harbor 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 $199,360 as of the beginning of the year.

Reconciliation Spreadsheet
Description Debit Credit
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer


2. Record Depreciation Expense of $9,968 for the year and reverse Expenditures of $11,962 for Capital Outlays during the year.

Depreciation expense Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer


3. Recognize $7,000 of Bonds Payable as of the beginning of the year.

AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer


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.

AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer
Bond payable Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer


5. Reverse Deferred Revenue of $27,300 as of the beginning of the year.

AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer


6. Reverse $1,365 of Deferred Revenue recognized during the year.

AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer


7. Recognize Compensated Absences of $3,988 as of the beginning of the year and an increase in that liability of $199 during the year.

Net position Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer


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.

Net position Answer Answer
AnswerCapital assets, netNet positionAccrued interestBond and notes payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer


9. Recognize a liability of $5,482 relating to the City’s landfill as of the beginning of the year. The estimate for this liability did not change during the year.

AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer
AnswerCapital assets, netNet positionAccrued interestBonds payableCompensated absencesLandfill closure and postclosure care costsDeferred revenuesRevenuesOther financing sources--proceeds from bondsExpenditures--capital outlayExpenditures--debt principal paymentsDepreciation expenseCompensated absences expenseInterest expense Answer Answer

Mark 1.00 out of 1.00

Homework Answers

Answer #1
1 Assets 199360
Bank 199360
2 Depreciation 9968
Acc Dep 9968
3 Expenses 11962
Capital Outlays 11962
4 Bank 7000
Bonds Payable 7000
5 P&L 2000
O/S Bonds Payable 2000
6 Bonds Payable 700
P&L 700
7 Deferred Tax Revenue 27300
DT Liability 27300
8 Wage 4187
Advance Compensation Payable 4187
9 P&L 199
Wage 199
10 Interest 20
Acc Interest 20
11 Interest 33
Acc Interest 33
12 P&L 33
Interest 33
13 Landfill Expenses 5482
Landfill Expenses Payable 5482
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