The City of Brown Creek constructed a new storage facility using the city's own public works employees. Construction costs were incurred in the amount of $900,000, plus $25,000 in interest on short-term notes used to finance construction. What amount should be capitalized in the government-wide 13 statements? ω Multiple Choice ο ο ο O $900,000 $925,000. $875,000. $0

The City of Brown Creek constructed a new storage facility using the city's own public works employees. Construction costs were incurred in the amount of $900,000, plus $25,000 in interest on short-term notes used to finance construction. What amount should be capitalized in the government-wide 13 statements? ω Multiple Choice ο ο ο O $900,000 $925,000. $875,000. $0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

3 During the year, a local merchant donated a building to the City of Stage Coach. The original cost of the building was $300,000. Accumulated depreciation at the date of the gift amounted to $250,000. The acquisition value of the donation at the date of the gift was $600,000. At what amount should this contribution be recorded in the governmental activities accounts at the government-wide level? Multiple Choice $50,000. $300,000. $600,000. $0.
Shina township's financial transaction during the year as follows, Equipment purchased from restricted fund RO 25 million, Paid salary to government employees RO 5 million, Government grant RO 2 million. The amount that should report as expenditure in its general funds is a. RO 5 million b. RO 30 million c. None of the options d. RO 25 million Shina township's financial transaction during the year as follows, Equipment purchased from restricted fund RO 25 million, Paid salary to government employees RO 5 million, Government grant RO 2 million. The amount that should report as expenditure in its general funds is a. RO 5 million b. RO 30 million c. None of the options d. RO 25 million Shina township's financial transaction during the year as follows, Equipment purchased from restricted fund RO 25 million, Paid salary to government employees RO 5 million, Government grant RO 2 million. The amount that should report as expenditure in its general funds is a. RO 5…
On January 1, 2021, Fantastic Corporation received cash of P8,000,000 from a local government to be used in constructing a building. The construction was completed on December 31, 2021 for a total cost of P20,000,000. The building will be depreciated using the straight-line method for 20 years. Refer to Fantastic, calculate the value of income from government grant to be reported on December 31, 2021 using gross presentation. Select one: а. 400,000 b. 600,000 с. 1,000,000 d. 8,000,000 e. None of the choices
At the beginning of the current year, Peace Company purchased a machine for P 7,000,000 and received a government grant of P 1,000,000 toward the capital cost. The machine is to be depreciated on a straight line basis over 5 years and estimated to have a residual value of P 500,000 at the end of this period 1. The journal entry to record the government grant as a deferred revenue: 2. The journal entry to recognize income from government grant:
C. 26. A. B. D. The capital projects fund of Hysham completed construction of a new building. The building should be reported in the: I. government-wide statement of net assets. II. capital projects fund. A) I only B) II only C) Either I or II D) Neither I nor II 27. Which presentation method combines the component unit's results into the primary government's financial results? $ 600,000 Proceeds from general obligation bond issue $ 2,000,000 Transfer from Cherry's general fund $ 150,000 In its 20X1 capital projects fund operating statement, Cherry should report these amounts as: Other financing sources A) Blended presentation B) Discrete presentation C) Combined presentation D) Consolidated presentation 28. Financing for the renovation of Cherry City's municipal park, begun and completed during 20X1, came from the following sources: Grant from state government S 0 600,000 $2,750,000 $2,600,000 Revenues $ A) Option A B) Option B C) Option C D) Option D $ $ $ $ 2,750,000 2,150,000 0…
Ministry of Tourism makes an appropriation of RO 450,000 for the development of tourist places. The financial transactions during the year, Salary paid to employees RO 50,000. An order is placed for purchasing some equipment for RO 200,000 The amount was transferred to debt service fund RO 6,000. Which one of the following is unreserved fund balance? a. RO 206,000 b. RO 194,000 c. None of the options d. RO 450,000
Problem 5: Comparing the measurement focus and basis of accounting of governmental funds with the measurement focus and basis of accounting of proprietary funds The information below pertains to the Village of Brexitville for the year ended December 31, 2022. Purchased 10 HP printers at the beginning of 2022 for $11,000; the printers are expected to last 4 years and have a salvage value of $1,000; Paid $42,000 to the federal government representing the Village’s share of payroll taxes for FICA and Medicare; Paid $50,000 to retire bonds payable; paid interest on outstanding bonds of $1,000; Received a bill for $2,000 on January 2, 2023, from Peoples Gas for natural gas used to heat government facilities in November and December, 2022. Required: Compute total expenditures for the local government assuming transactions A, B, and D are recorded in the general fund, and transaction C is recorded in a debt service fund. Compute total expenses for the government assuming all transactions…
ABC corporation received P10,000,000 from the City of Caloocan in relation to defraying its research expenses in relation to COVID-19 for the next 5 years. The research expenses will be incurred by the entity as follows: 1st year 2nd • year 3rd year Ath year 5th year P2.000.000 1,000.000 3.000.000 4.000.000 2 500.000 P12,500,000 The grant income to be recognized in the second year should be?
Financing for the renovation of Fir City's municipal park, begun and completed during Year 1, came from the following sources: Grant from state government $400,000 Proceeds from general obligation bond issue 500,000 Transfer from Fir's general fund 100,000 In its Year 1 capital projects fund operating statement, Fir should report these amounts as:) Revenues Other Financing Sources A) Operating cash flow only. B) Investing cash flow only C) Operating or investing cash flow. D) Operating or financing cash flow.
The following financial transactions are related to a local government during the year. General property taxes 100,000, Proceeds of general bonds RO 50,000, State grant to construct the school building RO 400,000. Which one of the following amounts that a local government should report in general funds? a. RO 150,000 b. RO 400,000 c. None of the options d. RO 550,000
The following financial transactions are related to a local government during the year. General property taxes 100,000, Proceeds of general bonds RO 50,000, Paid salary to government employees RO 200,000, Purchased the police vehicles RO 100,000. Which one of the following amounts that a local government should report as expenditure in general funds? a. RO 150,000 b. RO 200,000 c. RO 300,000 d. None of the options
Crimson City borrows $3,000,000 to build a new addition for city hall. During the year, they constructed the new addition spending $3,250,000. At what amount would the new addition be reported on the debt service fund's balance sheet? $3,000,000 $250,000 0 $3,250.000