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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Chapter 5, Problem 1C
a)
To determine
Record the
b)
To determine
Identify the GAAP fund balance classification that will affected by the investment income.
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Harrison City operates a water utility fund as an enterprise fund. You are provided with the following information for year 2021:
1. The beginning net position balances are net investment in capital assets, S650,000; restricted, S8,000; and unrestricted, S480,000.
2. Bonds in the amount of $200,000 were issued and immediately used to acquire capital assets from the bond proceeds at a cost of $200,000. At the end of year,
depreciation on the assets was $10,000. The enterprise fund also had paid back $40,000 of the debt principal.
3. Cash receipts for customer deposits totaled S3,000 for the year.
4. Additional depreciation totaled S12,000.
5. Net income for year 2021 was $300,000 (Note: this amount includes any item that needs to be included in net income from 2. to 4. above)
Required:
Compute the following items as of December 31, 2021:
1. Net position - net investment in capital assets
2. Net position
restricted
3. Net position ---
unrestricted
The City of Fox is evaluating which of its funds it will present as a major fund in its fund financial statements on December 31, Year 1. The city presents the following partial listing of asset data at December 31, Year 1:
Total Governmental Fund Type Assets $ 3,000,000
Total Enterprise Fund Assets 2,000,000
General Fund Assets 280,000
Community Development Special Revenue Fund 290,000
Faberville River Bridge Capital Project Fund 100,000
Faberville Water & Sewer Utility Fund 1,800,000
Faberville Landfill 200,000
Based purely on assets, how many funds should be displayed as major funds?
A.) Four
B.) Five
C.) TWO
D.) Three
The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood
Township in an investment pool to be managed by the city. Each of the pool participants had reported its investments at
fair value as of the end of 2022. At the date of the creation of the pool, February 15, 2023, the fair value of the
investments of each pool participant was as follows:
City of Albertville General Fund
Albertville Schools
Richwood Township
Total
Investments
12/31/22
900,000
4,220,000
4,090,000
$9,210,000
2/15/23
$ 950,000
4,465,000
4,085,000
$9,500,000
Chapter 5 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - The term deferred revenues seems out of place in...Ch. 5 - Governments often collect cash or must record...Ch. 5 - Modified accrual basis revenue recognition is...Ch. 5 - (a) Should estimated uncollectible amounts of...Ch. 5 - (a) What are expenditure-driven intergovernmental...Ch. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - During the course of your audit of a city, you...
Ch. 5 - Prob. 11QCh. 5 - Prob. 1.1ECh. 5 - Prob. 1.2ECh. 5 - Prob. 1.3ECh. 5 - Prob. 1.4ECh. 5 - What would the answer be to number 4 if the city...Ch. 5 - A county received 3,000,000 from the state. Of...Ch. 5 - A Special Revenue Fund expenditure of 40,000 was...Ch. 5 - A state received an unrestricted gift of 80,000 of...Ch. 5 - Prob. 1.9ECh. 5 - Prob. 1.10ECh. 5 - Prob. 2.1ECh. 5 - Prob. 2.2ECh. 5 - Prob. 2.3ECh. 5 - Prob. 2.4ECh. 5 - Prob. 2.5ECh. 5 - Prob. 2.6ECh. 5 - Prob. 2.7ECh. 5 - Prob. 2.8ECh. 5 - Prob. 2.9ECh. 5 - Prob. 2.10ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - a. Prepare the general journal entries to record...Ch. 5 - Prob. 6ECh. 5 - Prepare general journal entries to record the...Ch. 5 - Prob. 8ECh. 5 - The City and County of PreVatte received a state...Ch. 5 - Make all required General Fund journal entries for...Ch. 5 - The city of Asher had the following transactions,...Ch. 5 - 1. The following are the estimated revenues for a...Ch. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 1CCh. 5 - Prob. 2C
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