Please help me solve Problem 8-14 by providing the journal and closing entries.
ID: 2597852 • Letter: P
Question
Please help me solve Problem 8-14 by providing the journal and closing entries. The excel template is not needed to do the journal entries and the closing entries. Thank you in advance.
principal is added to restricted fund balances. 8-14. 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 spread- sheet 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: a. Capital Assets Capital assets purchased by governmental funds are charged to cap- ital expenditure and do not appear as assets in the fund-basis bal- ance sheet. However, the balance is reflected in the Statement of Net Position in the government-wide financial statements.Explanation / Answer
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Worksheet Journal Entries to Convert to the Accrual basis of Accounting a1 Capital Assets (net) 16,990,000 Net Position - beginning 16,990,000 a2 Depreciation expense 3,100,000 Capital Assets (net) 3,100,000 a3 Capital Assets (net) 11,180,818 Capital Expenditures 11,180,818 b1 Net Position - beginning 10,596,000 Bonds Payable 10,596,000 b2 OFS: Proceeds from issuance of debt 9,675,400 Bonds Payable 9,675,400 b3 Bonds Payable 954,326 Expenditure - debt principal 954,326 b4 Interest expense 167,000 Accrued interest payable 167,000 b5 Net Position - beginning of year 186,500 Interest expense 186,500 c1 Deferred inflows -- property taxes 185,064 Property tax revenue 185,064 c2 Property tax revenue 188,400 Net Position - beginning 188,400 d1 Net Position - beginning 2,471,480 Landfill closure cost liability 2,471,480 d2 Public works expense 128,520 Landfill closure cost liability 128,520 e1 OFS: Transfers from other funds 2,730,144 OFU: Transfers to other funds 2,730,144