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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Question
Chapter 5, Problem 6P
1 (a)
To determine
Compute the net change in the fair value of the BISD investment using the specific identification method.
1 (b)
To determine
Compute the net change in the fair value of the BISD investment using the aggregate method.
2
To determine
Prepare the general
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Students have asked these similar questions
Wood City, which is legally obligated to maintain a debt service fund, issued the following general obligation bonds on July 1, Year 1: Term of bonds 10 years, Face amount $1,000,000, Issue price 95 , Stated interest rate 6% Interest is payable January 1 and July 1. What amount of bond discount should be amortized in Wood's debt service fund for purposes of fund financial reporting for the year ended December 31, Year 1?
A.) $1,000
B.) $500
C.) $250
D.) $0
For the following event, prepare journal entries under a governmental fund (using modified accrual), necessary worksheet entries, and government-wide financial
statements (using accrual basis of accounting).
At year end, additional general obligation bonds were issued at 102 with a face value of $1,000,000.
J/E under Modified Accrual
Account Debited
[Select)
Worksheet Entries
Account Debited
[Select]
[Select]
Account Credited
[Select]
[Select]
Account Credited
[Select
[Select]
Amount Debited
[Select]
Amount Debited
1.000.000
[Select)
Amount Credited
1,000,000
[Select]
Amount Credited
1.000.000
[Select]
4.
The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2020, the last day of its fiscal year. The enterprise fund was established this year
through a transfer from the General Fund.
Accounts payable
Accounts receivable
Accrued interest payable
Accumulated depreciation
Administrative and selling expenses
Allowance for uncollectible accounts
Capital assets
Cash
Charges for sales and services
Cost of sales and services
Depreciation expense
Due from General Fund
Interest expense
Interest revenue
Transfer in from General Fund
Bank note payable
Supplies inventory
Totals
Debits
$32,000
47,000
712,000
89,000
479,000
45,000
17,000
40,000
18,000
$1,479,000
Credits
$ 96,000
28,000
45,000
12,000
550,000
4,000
119,000
625,000
$1,479,000
Required:
a. Prepare the closing entries for December 31.
b. Prepare the Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31.
c. Prepare the Net Position section of the…
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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- As per the bond agreement that the district periodically set aside funds to repay the principal of the debt. The district transfers funds from the General Fund to the fund specially created to account for resources restricted for debt service. Which one of the following journal entry records transfer of funds in the general fund? a. None of the options b. Transfer to general fund Account Dr, Bank Account Cr c. Bank Account Dr, Transfer from general fund Account Cr d. Transfer to debt service fund Account Dr, Bank Account Crarrow_forward1. The General Fund collected $625,000 in accrued taxes, which was transferred to the debt service fund; $400,000 of this amount was used to retire outstanding serial bonds and the remainder was used to make the interest payment on the outstanding serial bonds. Required: Record the transection under General Fund and debt service fundarrow_forwardFrom the following information, you are required to prepare statement of revenues, expenditure and changes in fund balances, other financial sources and statement of net assets Revenue department levied taxes and collected RO 665000 out of which RO 165000 has been outstanding Department of ministry of commerce has issued 33000 bonds of RO 10 each at a discount of RO 2 per bond which is restricted for purpose of construction of Bus station The same has been spent by the department for construction bus station and total amount of RO 330000 has been paid The service department billed the other department RO 15000 Municipality issued 5% bonds of RO 55000 at RO 5 each at a premium of 10%arrow_forward
- Match the appropriate letter indicating the recording of the following transactions:1. General obligation bonds were issued at par.2. Approved purchase orders were issued for supplies. The purchases method for supplies is followed.3. The above-mentioned supplies were received, and the related invoices were approved.4. General fund salaries and wages were incurred.5. The internal service fund had interfund billings.6. Revenues were earned from a previously awarded grant restricted to be used in the current period.7. Property taxes were collected in advance.8. Appropriations were recorded on adoption of the budget.9. Short-term financing was received from a bank and secured by the city’s taxing power.10. There was an excess of estimated inflows over estimated outflows. Recording of transactions:a. Credit Appropriations.b. Credit Budgetary Fund Balance—Unassigned.c. Credit Expenditures.d. Credit Deferred Inflows of Resources.e. Credit Interfund Revenues.f. Credit Tax Anticipation Notes…arrow_forwardShina township's financial transaction during the year as follows, Equipment purchased from restricted fund RO 25 million, Paid salary to government employees RO 5 million, Government grant RO 2 million. The amount that should report as expenditure in its general funds is a. RO 5 million b. RO 30 million c. None of the options d. RO 25 million Shina township's financial transaction during the year as follows, Equipment purchased from restricted fund RO 25 million, Paid salary to government employees RO 5 million, Government grant RO 2 million. The amount that should report as expenditure in its general funds is a. RO 5 million b. RO 30 million c. None of the options d. RO 25 million Shina township's financial transaction during the year as follows, Equipment purchased from restricted fund RO 25 million, Paid salary to government employees RO 5 million, Government grant RO 2 million. The amount that should report as expenditure in its general funds is a. RO 5…arrow_forwardIbri township issued the following bonds during the year. The bond issued to purchase equipment for vehicle repair service that is accounted for in an internal service fund RO 30,000, The bonds issued to construct a new city hall RO 10,000 The bonds issued to improve its water utility, which is accounted for in an enterprise fund RO 50,000. The amount of bond issued to be reported in the general fund is a. RO 10,000 b. RO 50,000 c. None of the options d. RO 30,000arrow_forward
- A $110,000 payment is made on a long-term liability. Of this amount, $10,000 represents interest. Which of the following is not true for the recording of this transaction? Choose the correct.a. Reduce liabilities by $100,000 in the government-wide financial statements.b. Record a $110,000 expenditure in the fund financial statements.c. Reduce liabilities by $100,000 in the fund financial statements.d. Recognize $10,000 interest expense in the government-wide financial statements.arrow_forwardA special Disctrict's balance sheet may not capture its economic resources and obligations A special district accounts for its general fund (its only fund) on a modified accrual basis. In a particular period, it engaged in the following transactions: It issued $20 million in long-term bonds It acquired several tracts of land at a total cost of $4 million paying the entire amount in cash It sold a portion of land for $1 million, recieving cash for the entire amount. The tract sold had cost of $0.8 million. It repaid $2 million of the bomds It lost a lawsuit and was ordered to pay $9 million over three years. It made its first cash payment of $3 million 1. Prepare journal entries to record the transactions in the general fund. 2. Based on your journal entries, prepare a balance sheet and a statement of revenues, expenditures and other changes in fund balance. My question is could someone look at my journal entries (image attached) and tell me if I am on the right track, and help me…arrow_forwardFalmouth City owns and operates a mini-bus system which it accounts for in an enterprise fund. Prepare journal entries to record the following transactions, which occurred in a recent year. a) The mini-bus system issued $5 million of 8 percent revenue bonds at par and used the proceeds to acquire new mini-buses. b) As required by the bond covenant, the system set aside 1 percent of the gross bond proceeds for repair contingencies. c) The system accrued 6 months interest on the revenue bonds at year-end. d) The system incurred $30,000 of repair costs and paid for them with cash set aside for repair contingenciesarrow_forward
- Determine the correct debit account from among the choices below: a. Expenditures b. Extraordinary Items c. Encumbrances d. Answer not included in the above selections The Debt Service Fund recognizes a principal payment that is currently due on a Bond debt. Answer 1 A contract is signed with ABC Construction for a project related to the Capital Projects Fund in the amount of $8,400,000. Answer 2 The city invests 30% of the bond proceeds in short term investments. Answer 3 A city’s water supply is contaminated by terrorists. Costs of clean-up, disposal, and importation of a fresh water supply total $50,000,000. Answer 4 The General Fund incurs and pays salaries totaling $400,000. Answer 5arrow_forwardThe following are the balances extracted from the public Accounts on the consolidated fund from the year ended 31 December 2016. GHS000 Direct Tax 1044460 compensation of employee 808672 Goods and Services 404336 Non-financial Assets 134779 Indirect tax 939556 Grants 28110 Interest Expenses 398138 Social benefits 238882 Other Expenses 159255 Other revenue 50928…arrow_forwardPresented below is the preclosing trial balance for the Scholarship Fund, a private-purpose trust fund of the Algonquin School District. Trial Balance—December 31, 2020 Debits Credits Accounts Payable $ 3,100 Accrued Interest Receivable $ 1,250 Administrative Expense 7,410 Cash 65,940 Increase in Fair Value of Investments 5,500 Distributions—Scholarships 76,000 Interest Income 90,000 Investment in Bonds 1,520,000 Net Position: Restricted for Scholarships 1,572,000 $ 1,670,600 $ 1,670,600 Required:Prepare the year-end closing entries and a Statement of Changes in Fiduciary Net Position for the year ended December 31, 2020arrow_forward
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