Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 5, Problem 17.2EP
Two new copiers were purchased for use by the city clerk’s office using General Fund resources. The copiers cost $15,000 each; the city’s capitalization threshold is $5,000. Which of the following entries would be required to completely record this transaction?
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The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. Which of the following is true for reporting the gift within the government-wide financial statements?a. A capital asset of $240,000 must be reported.b. No capital asset will be reported.c. If conditions are met, recording the sculpture as a capital asset is optional.d. The sculpture will be recorded but only for the amount paid by the city.
A city orders a new computer for its police department that is recorded within its general fund. The computer has an anticipated cost
of $92,700. Its actual cost when received is $94,250. Payment is subsequently made.
a. Prepare all required journal entries for both fund and government-wide financial statements. (Select the appropriate fund for each
situation when required. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transaction
Fund/Activity
General Journal
1. Purchase and payment made for computers in the government wide financial statements.
1
Record the receipt of computers and the accompanying liability.
Record payment made.
2. Purchase and payment made for computers in the general fund.
2
Record the order placed for purchase of computer.
Debit
Record entry to remove encumbrance for computers that has now been received.
Record the receipt of computers and the accompanying liability.
Record payment made.
Credit
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.
Chapter 5 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 5 - What are general capital assets? How are they...Ch. 5 - Explain what disclosures the GASB requires for...Ch. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - What is the accounting difference between using...Ch. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - What is a service concession arrangement, and why...
Ch. 5 - Prob. 13CCh. 5 - Prob. 14CCh. 5 - Prob. 15CCh. 5 - Under GASB standards, which of the following would...Ch. 5 - Two new copiers were purchased for use by the city...Ch. 5 - Maxim County just completed construction of a new...Ch. 5 - A capital projects fund would probably not be used...Ch. 5 - Machinery and equipment depreciation expense for...Ch. 5 - Prob. 17.6EPCh. 5 - Prob. 17.7EPCh. 5 - Callaway County issued 10,000,000 in bonds at 101...Ch. 5 - Neighborville enters into a lease agreement for...Ch. 5 - Neighborville enters into a lease agreement for...Ch. 5 - Prob. 17.11EPCh. 5 - Prob. 17.12EPCh. 5 - Prob. 17.13EPCh. 5 - Arbitrage rules under the Internal Revenue Code a....Ch. 5 - Prob. 17.15EPCh. 5 - Make all necessary entries in the appropriate...Ch. 5 - Prob. 19EPCh. 5 - Prob. 20EPCh. 5 - In the current year, the building occupied by...Ch. 5 - Prob. 22EPCh. 5 - Make all necessary entries in a capital projects...Ch. 5 - The year-end pre-closing trial balance for the...Ch. 5 - Prob. 25EPCh. 5 - This year Riverside began work on an outdoor...
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