You are a new staff accountant for the city of Namtip. The city has only five governmental funds (General, Special Revenue, Capital Projects, Endowment, and Debt Service) and no Proprietary or Trust/Agency Funds. Cecile Hockafinger III, Chief Accounting Officer for the city of Namtip, prepared the attached PC Excel® file (Namtip 2015.xls) to assist in the preparation of the governmental activities of the government wide financial statements as of and for the year ending December 31, 2015 (fiscal year (FY) 2015). So far, Cecile has entered the pre-closing balances of each of the governmental funds on the worksheet. Additionally, he has entered the beginning balances (January 1, 2015) for the General Capital Assets and General Long-term Liability nonfund accounts. He also setup the general format for completing the worksheet. Unfortunately, before he could make the appropriate adjusting, elimination, and reclassification entries to make the GASB 34 conversion and complete the worksheet, Cecile's Army Reserve unit was activated and he will be unable to return to work for at least two months. Since you are the only other accounting employee to ever taken a governmental accounting course, the city manager has asked to complete the task Cecile started.

You will need to calculate the individual account balances for the Total Combined Funds and GCA/GLTL Accounts. Then you are to prepare all of the adjusting, elimination, and reclassification entries on the worksheet that are necessary to compute the balances for the governmental activities of the government wide financial statements. All entries should be in whole dollars (i.e., no decimals) without dollar signs. You should use compound entries whenever it is logical to do. Additional information is provided below to assist you in this assignment on page 3. To leave a trail of your entries, you should number your entries using Arabic numbers (1, 2, 3, etc.). Be sure to put the journal entry number in Dr Ref column left of the Dr Column of the Adjustments and Eliminations as well as the journal entry number in Cr Ref column right of the Cr Column of the Adjustments and Eliminations. In the case of any compound journal entries, you should indicate journal entry number for each debit or credit amount that you enter. If journal entry 25 consists of debits of $45,000 and $5,000 and credits of $35,000 and $15,000 you would enter the following on the appropriate lines of the accounts involved:

Adjustments and Eliminations

Dr Ref
Dr
Cr
Cr Ref
25
45,000
25
5,000
35,000
25
15,000
25

If an account is not listed, you may use one of the blank rows available with the appropriate account title. You should use the capabilities of Excel® wherever possible. Do not make any additional adjustments/eliminations simply to reclassify expenditures to expenses.

After you have entered all of your entries, you should calculate the preclosing trial balance of the governmental activities of the government wide and then spread them in the appropriate columns of the Statement of Activities and Statement of Net Position. Do not add any additional worksheets. Do not prepare any of the formal government-wide financial statements. You should save your PC Excel® file as Project 1 (do not add any other verbiage such as your name, course name or number, etc.) with the appropriate xls or xlsx extension.

Additional Information

Round any calculations to the nearest whole dollar.

In addition to the normal adjusting/elimination entries that will be made, the following information is provided to assist you.

The city uses following average useful lives to depreciate the general fixed assets using the straight line method with no residual values:

Infrastructure 50 years
Buildings 40 years
Improvements Other than Buildings 25 years
Autos, Trucks, and Heavy Equipment 10 years
Furniture and Office Equipment 5 years

A full year's of depreciation is recorded in the year of acquisition, regardless when acquired; however, no depreciation is recorded in the year of disposal, regardless when disposed. Depreciation is allocated to the following functions: General Government, 25%; Public Safety, 20%; Public Works, 35%; Health and Welfare, 10%; and Parks and Recreation, 10%;

An analysis of the Expenditures-Capital Outlay reveals the following: Furniture and office equipment was acquired at a cost of $2,000,000; various autos, trucks and heavy equipment were acquired at a total cost of $16,000,000; and the remaining balance represents the costs incurred during the year for the construction of a new police training center that should be completed in mid-2016.

The Other Financing Sources-Sale of Building represents the proceeds of the sale of a building that had a cost of $2,500,000 and been depreciated for a total 24 years.

On January 2, 2015 the city of Namtip issued the 30-year, 3% term bonds with a face amount of $50,000,000 at 101½. Interest is paid semi-annually on June 30th and December 31st. The city has a policy of amortizing, at the end of the fiscal year, any premium or discount, using the straight line method over the term of the bond.

During 2015, other term and serial bonds were paid off as they matured during 2015.
All interest related to all of the bonds was paid as of December 31st.

The Deferred Property Taxes represents amounts that were levied in 2015, but are not expected to be collected before May 2016. The beginning balance of Deferred Property Taxes was $1,200,000.

In late December of 2015, the city attorney advised the city council that a lawsuit involving the Parks and Recreation Department's inadvertent demolition of a taxpayer's building in October of 2015 had been filed. The attorney believes it is probable that the city will have to pay the taxpayer $1,250,000 in about 3 years.