Converting Governmental Fund Basis to Accrual Basis: Journal

Journal EntriesdebitsAdjustments & Eliminations1 Capital Assets3,875,000 DebitsCredits Net position - Beginning of year2,000,000DEBITS: Bonds PayaBLE1,875,000 Cash2,201,6262,201,626 to record beginning balances LT debt and capital assetsTaxes Receivable, net161,500161,500 Inventories116,000116,000 2 Capital Assets2,280,000Capital Assets (net)13,875,000235,50035,919,500 Capital Expenditures2,280,000 22,280,000 to capitalize current expenditures- Expenditures (expenses) Current 3 Depreciation expense235,500General Govt. Operations1,488,1241,488,124 Accumulated depreciation235,500 Public Safety1,425,0001,425,000 current year depreciationEducation1,185,0001,185,000 Other Expenditures (expenses) 4 OFS - Proceeds of Bonds2,500,000- Debt Service Principal93,75093,7508- OFS - Premium on Bonds80,000 - Interest (expenditure/expense)187,5006187,5003,0005372,000 Bonds Payable2,500,000 Premium on Bonds80,000 - Capital Outlay2,280,0002,280,0002- To record LT liability for bonds issued this year- Depreciation3235,500235,500 Other Fin. Uses - Transfers Out1,161,250861,2507300,000 5 Premium on Bonds3,000 Interest Expense3,000Total Debits10,299,75013,404,250 To amortize 9 months of bond premium CREDITS: Accounts Payable35,00035,000 6 Interest Expense187,500 Due to Other Funds115,000115,000 Accrued interest payable187,500Contracts Payable1,030,0001,030,000 To accrue interest for 9 months on bonds issued this year Accrued Interest Payable187,5006187,500 Short Term Notes Payable300,000300,000 7 Transfer In861,250 Bonds Payable893,7501,875,0001 Transfer Out861,2502,500,00044,281,250 To eliminate interfund transfers (between governmental type only) Premium on Bonds53,00080,000477,000 - 8 Bond Payable93,750 - Expenditures - principal93,750 To eliminate expenditure for bond principal and reduce liability Revenues Property Taxes3,681,5003,681,500 Sales Taxes756,000756,000 Interest- Fees, Licenses & Permits312,000312,000 Miscellaneous80,00080,000 Intergovernmental Grant for- General Gov't Operations510,000510,000 - Other Financing Sources Proceeds of Bonds2,500,00042,500,000- Premium on Bonds80,000480,000- Transfers In861,2507861,250- Net Position at beginning of year39,0002,000,00012,039,000 Total Credits10,299,75013,404,250