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 2P
- a. Analyze the effects of the following transactions on the
accounting equations of the various funds and nonfund accounts of a state or local government. (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. Be sure to identify the fund and the operating statement.
- 1. A government incurred and paid salaries for general government employees, $500,000.
- 2. A government purchased a truck for $38,000 cash for the use of a general government department that is financed from restricted taxes that can be used only to support the department’s programs.
- 3. A government issued $5,000,000 of 6%, 10-year bonds to help finance expansion of a facility used by one of its public utility operations. The bonds were issued at par 3 months before year end and pay interest annually.
- 4. A government issued a 9-month, 10% note payable for $50,000. The note was issued 6 months before the end of the fiscal year to provide financing for various programs that are financed primarily from general tax revenues.
- 5. A government issued general obligation bonds at par, $15 million, to finance construction of a new school building. The bonds bear interest at 8%, payable annually, and were dated and issued 6 months before the end of the year.
- 6. The government purchased land for the site of the school, $185,000.
- 7. The government incurred and paid construction costs on the school building, which was completed during the year, $14,715,000.
- 8. The government’s governing body ordered that the unused school bond proceeds be set aside for paying principal and interest on the bonds, and those resources were set aside in the appropriate fund.
- 9. General tax revenues, $1,500,000, were paid to the fund to be used to pay principal and interest on the school bonds.
- 10. The first annual interest payment on the school bonds came due and was paid.
- 11. The 9-month note (from item 4) was repaid with interest when due.
- 12. The government-owned public utility sold services to the public on account, $1 million; no uncollectibles are expected.
- 13. The government-owned public utility sold services to other departments of the government, $110,000. The other departments have paid all but $10,000.
- 14. The government sold a police department computer for $4,000. Its original cost (3 years earlier) was $15,000. At the time of purchase the computer was expected to be used for 4 years and have a $7,000 residual value.
- 15. The government paid $100,000 principal and $10,000 interest on a long-term note when due, at mid-year.
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Question Three: mini cases
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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