Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Textbook Question
Chapter 2, Problem 1P
- a. Analyze the effects of each of the following transactions on each of the funds and/or the nonfund accounts of the city of Nancy. Identify the fund that typically would be used to record the transaction. (For any borrowing transactions, reflect any necessary year-end interest accruals in your responses.)
- b. Indicate how each transaction would be reported in the operating statement for each fund affected.
Example: Cash received for licenses during 20X1, $8,000.
Answer:
Revenues of $8,000 are reported in the General Fund statement of revenues, expenditures, and changes in fund balance.
- 1. Salaries and wages for firefighters and police officers incurred but not paid. $75,000.
- 2. The city borrowed $9,000,000 to finance construction of a new city executive office building by issuing bonds at par.
- 3. The city paid $5,000,000 to the office building contractor for work performed during the fiscal year.
- 4. The city purchased several notebook computers by issuing a $60,000, 6%, 6-month note to the vendor. The note is due March 1 of the next fiscal year, which is the calendar year. (The note is considered a fund liability.)
- 5. General Fund resources of $8,000,000 were paid to a newly established Airport Enterprise Fund to provide initial start-up capital.
- 6. A $3,000,000 personal injury lawsuit has been filed against the city. The comptroller determines that it is probable that a judgment in that amount will be made in the future but does not expect to have to pay the judgment for another 3 years. The incident relates to general government activities.
- 7. The city repaid one-half ($10,000,000) of general obligation bonds that had been issued several years before to finance construction of a school building. Interest of $1,000,000 matured and was paid.
- 8. The city sold general capital assets with an original cost of $50,000 and a $1,000 book value for $1,500. There are no restrictions on the use of the money.
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Chapter 2 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 2 - Governmental accounting systems are different from...Ch. 2 - Funds used in state and local government...Ch. 2 - Prob. 3QCh. 2 - Why are a municipalitys general capital assets and...Ch. 2 - Prob. 5QCh. 2 - Under what circumstances should a government use a...Ch. 2 - Identify the fund types that are classified as...Ch. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Define interfund loans and interfund transfers,...Ch. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - What is the accounting equation for a governmental...Ch. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 18QCh. 2 - Prob. 1.1ECh. 2 - Financial assets include a. capital assets that...Ch. 2 - All of the following are considered governmental...Ch. 2 - Each of the following is a fiduciary fund except...Ch. 2 - Prob. 1.5ECh. 2 - Which of the following transactions would not be...Ch. 2 - The transactions associated with a Community...Ch. 2 - The city of Hannah has established a trust to...Ch. 2 - A transaction in which a municipal electric...Ch. 2 - Prob. 1.10ECh. 2 - The operations of a municipal governments public...Ch. 2 - The proceeds of a federal grant made to assist in...Ch. 2 - The receipts from a special tax levy to retire and...Ch. 2 - The operations of a municipal swimming pool with...Ch. 2 - Prob. 2.5ECh. 2 - A municipalitys issuance of general obligation...Ch. 2 - Expenditures of 200,000 were made during the year...Ch. 2 - The activities of a central motor pool that...Ch. 2 - A city collects property taxes on behalf of the...Ch. 2 - A transaction in which a municipal electric...Ch. 2 - (Fund and Nonfund Accounts Identification)...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - a. Analyze the effects of each of the following...Ch. 2 - a. Analyze the effects of the following...Ch. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - (State of CaliforniaFund Identification) The...Ch. 2 - a. Analyze the effects of the following...
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