9-12.The fund-basis financial statements of Cherokee Library District (a special-purpose government engaged only in governmental activities) have been completed for the year 2020 and appear in the second and third tabs of the Excel spreadsheet provided with this exercise. The following information is also available:a. Capital AssetsCapital assets purchased in previous years through governmental-type funds total $21,050,000 and had accumulated depreciation of $5,770,000.Depreciation on capital assets used in governmental-type activities amounted to $434,000 for 2020.No capital assets were sold or disposed of in 2020, and all purchases are properly reflected in the fund-basis statements as capital expenditures.b. Long-Term DebtThere were $10,500,000 of outstanding long-term notes associated with governmental-type funds as of January 1, 2020. Interest is paid monthly.December 31, 2020, notes with a face value of $6,370,000 were issued at par. In addition, principal payments totaled $1,340,000.The notes, and any retained percentage on construction contracts, are associated with the purchase of capital assets.c. Deferred InflowsDeferred inflows are comprised solely of property taxes expected to be collected more than 60 days after year-end. The balance of deferred taxes at the end of 2019 was $92,000.d. Transfers: Transfers were between governmental-type funds.e. Beginning net position for the government-wide statements totaled $20,247,121 as January 1, 2020. This amount has already been entered in the Statement of Activities.Required:Use the Excel template provided to complete the following requirements. A separate tab is provided for each requirement:a. Prepare the journal entries necessary to convert the governmental fund financial statements to the accrual basis of accounting.b. Post the journal entries to the (shaded) Adjustments column to produce a Statement of Activities. You do not have to post amounts debited or credited to "(beginning) net position." These have been reflected in item e above.c. Post the journal entries to the (shaded) Adjustments column to produce a Statement of Net Position. Calculate the appropriate amounts for the Net Position accounts, assuming there are restricted net position. Type journal entries to convert to the accrual basis in the space belowTotalCapitalProjects Governmental Government-FundAdjustments toGeneralStatement ofand post them to the financial statements on the next two tabs.FundFundswideActivitiesRevenuesdebitscreditsProperty TaxesIntergovernmental revenuesInvestment income:20,205,519$20,205,5192,269,75120,205,519Capital assetsAccumulated depreciationNet positiona.21,050,000145,8012,415,5522,415,5525,770,00015,280,000461,684161,69123,098.645Interest income461,684461,684161,69123,244,446Net increase in fair value of investmentsDepreciation expenseAccumulated depreciation161,69123,244,446434,000Total Revenues145,801434,000Expenditures / ExpensesCapital assetsCapital outlay expenditureСurrent:Public services14,032,71114,032,71114,032,711Library MaterialsDepreciationCapital OutlayDebt Service5,474,6325,474,6325,474,632Net positionNotes payableb.10,500,00010,500,000453,0337,539,4817,992,5147,992,514OFS - Proceeds of debt6,370,0001,340,000830,90422,131,2801,340,000830,90429,670,761Principal1,340,000830,90429,670,761Notes payable6,370,000InterestTotal Expenditures7,539.481Notes payableDebt service expenditure - Principal1,340,0001,340,000Excess (Deficiency) of Revenues Over Expenditure967,365 (7,393,680)(6,426,315)(6,426,315)Property tax revenue92,800c.Other finaneing sources (uses)Net position92,8006,370,0002,500,000(2,500,000)6,370,0006,370,0002,500,000Proceeds of debt6.370,000Transfers in2,500,000Deferred property taxes(2,500,000)6,370,000Transfers out(2,500,000)Property tax revenuetotal other financing sources (uses)(2,500,000) S,870,000OFS - Transfers inOFU - Transfers outd.Net Change in Fund Balance/Net PositionFund Balance Net Position, January 1Fund Balance/Net Position, December 31(56,315)15,374,321$11,076,806 $4,241,200 $ 15,318,006(1,532,635) 1,476,32012,609,441(56.315)2,764,88020,247,121$ 20,190,806 TotalAdjustmentsGeneralCapitalProjects FundGovernmental to Government- Statement ofFundFundswideNet PositionAssetsCashS 15,859,823$11,034,232 S 4,825,591 $ 15,859,823683,722131,5342,487Investments683,722683,722131,5342,487596,901Taxes Receivable - Gross131,5342,487Interest ReceivablePrepaid ItemsCapital Assets596,901596,901Accumulated DepreciationTotal Assets$12,448,876 S 4,825,591 $ 17,274,467 S$ 17,274,467Liabilities, Deferred Inflows and Fund BalancesLiabilitiesAccounts Payable877,468400,6021,202,077400,602259,782324,6091,202,077400,602259,782Accrued LiabilitiesContracts payable - Retained %Long-term Notes Payable259,7821,278,070584,3911,862,461Total Liabilities1,862,461Deferred InflowsDeferred Inflows - Property Taxes94,00094,00094,000Fund BalancesNonspendablePrepaid ItemsAssignedLibrary purchasesCapital projectsUnassigned596,901596,901585,220585,2204,241,2009,894,68515,318,0064,241,2009,894,68511,076,806Total Fund Balances4,241,200Net PositionNet investment in capital assets(259,782)15,671,788$ 15,412,006Unrestricted

Question

9-12.The fund-basis financial statements of Cherokee Library District (a special-purpose government engaged only in governmental activities) have been completed for the year 2020 and appear in the second and third tabs of the Excel spreadsheet provided with this exercise. The following information is also available:a. Capital AssetsCapital assets purchased in previous years through governmental-type funds total $21,050,000 and had accumulated depreciation of $5,770,000.Depreciation on capital assets used in governmental-type activities amounted to $434,000 for 2020.No capital assets were sold or disposed of in 2020, and all purchases are properly reflected in the fund-basis statements as capital expenditures.b. Long-Term DebtThere were $10,500,000 of outstanding long-term notes associated with governmental-type funds as of January 1, 2020. Interest is paid monthly.December 31, 2020, notes with a face value of $6,370,000 were issued at par. In addition, principal payments totaled $1,340,000.The notes, and any retained percentage on construction contracts, are associated with the purchase of capital assets.c. Deferred InflowsDeferred inflows are comprised solely of property taxes expected to be collected more than 60 days after year-end. The balance of deferred taxes at the end of 2019 was $92,000.d. Transfers: Transfers were between governmental-type funds.e. Beginning net position for the government-wide statements totaled $20,247,121 as January 1, 2020. This amount has already been entered in the Statement of Activities.Required:Use the Excel template provided to complete the following requirements. A separate tab is provided for each requirement:a. Prepare the journal entries necessary to convert the governmental fund financial statements to the accrual basis of accounting.b. Post the journal entries to the (shaded) Adjustments column to produce a Statement of Activities. You do not have to post amounts debited or credited to &#34;(beginning) net position.&#34; These have been reflected in item e above.c. Post the journal entries to the (shaded) Adjustments column to produce a Statement of Net Position. Calculate the appropriate amounts for the Net Position accounts, assuming there are restricted net position. Type journal entries to convert to the accrual basis in the space belowTotalCapitalProjects Governmental Government-FundAdjustments toGeneralStatement ofand post them to the financial statements on the next two tabs.FundFundswideActivitiesRevenuesdebitscreditsProperty TaxesIntergovernmental revenuesInvestment income:20,205,519$20,205,5192,269,75120,205,519Capital assetsAccumulated depreciationNet positiona.21,050,000145,8012,415,5522,415,5525,770,00015,280,000461,684161,69123,098.645Interest income461,684461,684161,69123,244,446Net increase in fair value of investmentsDepreciation expenseAccumulated depreciation161,69123,244,446434,000Total Revenues145,801434,000Expenditures / ExpensesCapital assetsCapital outlay expenditureСurrent:Public services14,032,71114,032,71114,032,711Library MaterialsDepreciationCapital OutlayDebt Service5,474,6325,474,6325,474,632Net positionNotes payableb.10,500,00010,500,000453,0337,539,4817,992,5147,992,514OFS - Proceeds of debt6,370,0001,340,000830,90422,131,2801,340,000830,90429,670,761Principal1,340,000830,90429,670,761Notes payable6,370,000InterestTotal Expenditures7,539.481Notes payableDebt service expenditure - Principal1,340,0001,340,000Excess (Deficiency) of Revenues Over Expenditure967,365 (7,393,680)(6,426,315)(6,426,315)Property tax revenue92,800c.Other finaneing sources (uses)Net position92,8006,370,0002,500,000(2,500,000)6,370,0006,370,0002,500,000Proceeds of debt6.370,000Transfers in2,500,000Deferred property taxes(2,500,000)6,370,000Transfers out(2,500,000)Property tax revenuetotal other financing sources (uses)(2,500,000) S,870,000OFS - Transfers inOFU - Transfers outd.Net Change in Fund Balance/Net PositionFund Balance Net Position, January 1Fund Balance/Net Position, December 31(56,315)15,374,321$11,076,806 $4,241,200 $ 15,318,006(1,532,635) 1,476,32012,609,441(56.315)2,764,88020,247,121$ 20,190,806 TotalAdjustmentsGeneralCapitalProjects FundGovernmental to Government- Statement ofFundFundswideNet PositionAssetsCashS 15,859,823$11,034,232 S 4,825,591 $ 15,859,823683,722131,5342,487Investments683,722683,722131,5342,487596,901Taxes Receivable - Gross131,5342,487Interest ReceivablePrepaid ItemsCapital Assets596,901596,901Accumulated DepreciationTotal Assets$12,448,876 S 4,825,591 $ 17,274,467 S$ 17,274,467Liabilities, Deferred Inflows and Fund BalancesLiabilitiesAccounts Payable877,468400,6021,202,077400,602259,782324,6091,202,077400,602259,782Accrued LiabilitiesContracts payable - Retained %Long-term Notes Payable259,7821,278,070584,3911,862,461Total Liabilities1,862,461Deferred InflowsDeferred Inflows - Property Taxes94,00094,00094,000Fund BalancesNonspendablePrepaid ItemsAssignedLibrary purchasesCapital projectsUnassigned596,901596,901585,220585,2204,241,2009,894,68515,318,0064,241,2009,894,68511,076,806Total Fund Balances4,241,200Net PositionNet investment in capital assets(259,782)15,671,788$ 15,412,006Unrestricted

Accepted Answer

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