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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Question
Chapter 6, Problem 14C
a.
To determine
Explain the initial assessment of general obligation debt burden of city.
b.
To determine
Complete the table by calculating the ratio of Net General Bonded Debt to Assessed Value of taxable property and the Net General Bonded Debt per Capita and explain whether the city’s general obligation still the same as it was in requirement a. based on the time series analysis.
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The following information is available for the preparation of the government-wide financial statements for the City of Northren Pines fot the year ended June 30,2020:
Expenses: General government $11,960,000; Public Safety $23,900.000; Public Works $11,290,000 Health and sanitation $6,010,000, Culture and recreation $4,198,000; Interest on long term debt, governmental type $721,000; Water and Sewer system $10,710,000 Parking system $409,000
Revenues: Charges for service, general governemnt $1,510,000; Charges for services, public safety $210,000; Operating grant, public safety $798,000; Charges for services health and sanitation $2,335,000; Operating grant, health and sanitation $1,210,000; Charges for service, culture and recreation $1,998,000; Charges for services, water and sewer $11,588,000; Changes for services, parking system $388,000; Property Taxes $27,112,000; Sales Taxes $20,698,000 investment earnings, business-type $325,000; Special Item - gain on sale of unused land,…
3. The following information is available for the preparation of the government-wide financial statements for the City of Northern Pines for the year ended June 30, 2024:
Expenses:
General government
$ 10,712,000
Public safety
22,500,000
Public works
11,290,000
Health and sanitation
6,010,000
Culture and recreation
4,198,000
Interest on long-term debt, governmental type
450,000
Water and sewer system
10,710,000
Parking system
412,000
Revenues:
Charges for services, general government
1,206,000
Charges for services, public safety
210,000
Operating grant, public safety
800,000
Charges for services, health, and sanitation
2,580,000
Operating grant, health, and sanitation
1,210,000
Charges for services, culture, and recreation
1,998,000
Charges for services, water, and sewer
11,588,000
Charges for services, parking system
388,000
Property taxes
27,900,000
Sales taxes
17,600,000
Investment earnings, business-type
325,000
Special item—gain on…
1. The debt limit for general obligation debt for Oak City is 1 percent of the assessed property valuation for the city. Using the following information, calculate the city’s debt margin.
Assessed property valuation $10,836,621,000
Approved but unissued tax-supported debt 10,000,000
Revenue bonds issued 32,000,000
General obligation serial bonds issued 43,000,000
Capital leases outstanding 5,230,000
Chapter 6 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 6 - Prob. 1QCh. 6 - What disclosures about long-term liabilities are...Ch. 6 - Prob. 3QCh. 6 - Prob. 4QCh. 6 - Although the most common type of general long-term...Ch. 6 - What is overlapping debt? Why would a citizen care...Ch. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - How are debt issuance costs accounted for at the...Ch. 6 - Under what circumstances might a government...
Ch. 6 - Prob. 11CCh. 6 - A citizens group in your state has placed an...Ch. 6 - A county government and a legally separate...Ch. 6 - Prob. 14CCh. 6 - Evaluating Legal Debt Margins. (LO6-2) Youll be...Ch. 6 - Prob. 17.1EPCh. 6 - Proceeds from bonds issued to construct a new city...Ch. 6 - The liability for long-term debt issued to finance...Ch. 6 - Which one of the following statements regarding...Ch. 6 - Prob. 17.5EPCh. 6 - On March 2, 2020, 20-year, 6 percent, general...Ch. 6 - Prob. 17.7EPCh. 6 - Prob. 17.8EPCh. 6 - The liability for special assessment bonds for...Ch. 6 - Total general long-term indebtedness subject to...Ch. 6 - Payment of general obligation bond interest would...Ch. 6 - Debt issuance costs a. Include legal and...Ch. 6 - If bonds are sold at a premium: a. The premium is...Ch. 6 - Prob. 17.14EPCh. 6 - Prob. 17.15EPCh. 6 - Prob. 18EPCh. 6 - Budgeted and Actual Debt Service Transactions....Ch. 6 - Lease Agreement. (LO6-5) McCormick County agreed...Ch. 6 - Legal Debt Margin and Direct and Overlapping Debt....Ch. 6 - Debt Service Fund Trial Balance. (LO6-5) Following...Ch. 6 - Prob. 23EPCh. 6 - Term Bond Debt Service Fund Transactions. (LO6-5)...Ch. 6 - Prob. 25EP
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