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1. [Para. 5a-8] After final inspection, a final payment was made to the contractor, including the amount retained in para. 5a-6.

Required: Record this transaction in both the City Hall Annex Construction Fund and governmental activities general journals.

1. [Para. 5a-9] The City Hall Annex Construction Fund paid all outstanding liabilities on December 31, 2023.

Required: Record this transaction in both the City Hall Annex Construction Fund and governmental activities general journals. Total construction costs for the City Hall Annex Construction Project should be capitalized in the Buildings account in governmental activities.

[Para. 6a-3] On July 1, the debt service fund received $20,000 from the General Fund for interest payment on the 2% serial bonds. Checks were written and mailed to bondholders for the interest payment due July 1, 2023.

Required: Record the transfer in the debt service fund and the interest payment in both the debt service fund and governmental activities journals. At the government-wide level, reduce the premium on bonds payable by $1406, the difference between the stated interest rate (.02 X 6/12 X $2,500,000) and the effective interest rate (.01875 X 6/12 X $2,516,742).

[Para. 6a-5] At December 31, 2023, accrued interest expense on the 2% bond issue was recorded in the governmental activities general journal. Amortization of the premium on the 2% bonds sold was also recorded in the amount of $1,419.

Required: Record the accrual in the governmental activities journal.

[Para. 9a] Record depreciation expense for the year 2023 in the governmental activities general journal at the government-wide level using the following information. Verify accuracy of the adjusting entries and post to the general ledger by clicking [Post Entries].

Depreciation Expense Applied to Functions:

General Government $ 252,250

Public Safety 204,875

Public Works 117,500

Culture and Recreation 66,000

Total depreciation expense $640,625

Depreciation Applicable to Asset Categories (Increases in accumulated depreciation):

Infrastructure $ 322,531

Buildings 185,617

Equipment 132,477

Total depreciation expense $640,625

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