The Village of Shelburne operates a nine-hole golf course as an enterprise fund. You are provided with the following information for the current year:   Net income for the year was $161,551. The beginning net position balances are net investment in capital assets, $585,420; restricted, $5,050; and unrestricted, $254,820. New golf carts were leased. The present value of the lease liability is $200,090. A principal payment of $40,080 was made during the year, and amortization of the leased asset totaled $37,550. Lawn edging equipment with a carrying value of $6,140 was sold for $6,320. A new lawn mower was purchased for $75,000. At the end of the year, a $25,000 note associated with the machine remains outstanding. Depreciation of the mower was $7,500. Additional depreciation totaled $30,000.   Required Prepare the net position section of Shelburne’s statement of net position.

The City of Chessie received two contributions during its current fiscal year: A developer contributed 10 acres of land as part of an agreement with the city to allow more houses to be built per acre than current zoning laws permit. The city will use the land to build a park. The developer purchased the land for $1.5 million. The fair value of the land at the time of the contribution was $1.9 million. · A local resident contributed 30 acres of land to the city. The city agreed that it would sell the land and use the proceeds to add a new wing to the city’s senior center. The resident paid $500,000 for the land. When it was contributed, it had a fair value of $1.5 million. The city sold the land to several developers a month after its fiscal year-end for $1.7 million. a. Prepare journal entries to record each of these contributions in the city’s general fund. b. Comment on and justify any differences in the way you recognized each of these transactions. c. Would your answer on the…

This year Southfork began work on a senior center to hold activities for its growing senior citizen population. It is to be financed by a $5,000,000 bond issue, a $500,000 grant, and a $500,000 General Fund transfer. The following transactions occurred during the current year: The General Fund transferred $500,000 to the Senior Center Capital Projects Fund. A plot of land was purchased for $400,000 in cash. (This cost had not been encumbered.) Preliminary planning and engineering costs of $95,000 were vouchered. (This cost had not been encumbered.) A contract was signed with Sunset Construction Company for the major part of the project on a bid of $4,950,000. The $5,000,000 bonds were issued at par. Temporary investments were purchased at a cost of $3,500,000. A payable was recorded for a $49,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new building. (This cost had not been encumbered.) An invoice in the amount of $1,500,000 was…

A $40 million contract is awarded by a county for construction of a building.  Bonds are issued to finance construction, in the amount of $40 million.  During the first year, $10 million is paid in cash to contractors for work done.  At year-end, the capital projects fund reports the following fund balances:   Question 43 options:   a)  Unavailable:  $40 million   b)  Restricted $20 million, Committed:  $10 million   c)  Restricted:  $40 million   d)  Restricted:  $30 million

2. Big City provides a defined benefit pension plan for employees of the city water department,an enterprise fund. Assume that the service cost component is $420,000, and interest on thepension liability is $380,000 for the year. Actual returns on plan assets for the year were$300,000 while the projected level of earnings on plan investments was $360,000. Thisdifference is to be amortized over a 5 year period, beginning this year. Finally assume theCity is amortizing a deferred inflow resulting from a change in plan assumptions from a prioryear in the amount of $10,000 per year. Required: Prepare journal entries to record annual pension expense for the enterprise fund.

1. Clavel County leases an office building with a remaining economic life of 20 years.  The fair market value of the building is $6 million.  Annual lease payments are agreed at $523,107, based on a 6 percent interest rate.  The lease meets the conditions for a capital lease.Record the lease and the first year’s interest payment (a)  In a governmental fund (b)  In the government-wide statements 2. Should the office building be depreciated?  If so, how and where should depreciation be recorded? 3. Suppose the lease did not meet the conditions for a capital lease.  How and where should the lease be recorded? Should the office building be depreciated?  If so, how and where should depreciation be reported?