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 7, Problem 26EP
Net Position Classifications. (LO7-5) The Village of Shelburne operates a nine-hole golf course as an enterprise fund. You are provided with the following information for the current year:
- 1. Net income for the year was $161,511.
- 2. The beginning net position balances are net investment in capital assets, $585,400; restricted, $5,000; and unrestricted, $254,790.
- 3. New golf carts were leased. The present value of the lease liability is $200,000. A principal payment of $40,000 was made during the year, and amortization of the leased asset totaled $37,500.
- 4. Lawn edging equipment with a carrying value of $6,100 was sold for $6,300.
- 5. A new lawn mower was purchased for $75,000. At the end of the year, a $25,000 note associated with the machine remains outstanding. Depreciation of the mower was $7,500.
- 6. Additional depreciation totaled $30,000.
Required
Prepare the net position section of Shelburne’s statement of net position.
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The Village of Shelburne operates a nine-hole golf course as an enterprise fund. You are provided with the following information for the current year:
Net income for the year was $161,551.
The beginning net position balances are net investment in capital assets, $585,420; restricted, $5,050; and unrestricted, $254,820.
New golf carts were leased. The present value of the lease liability is $200,090. A principal payment of $40,080 was made during the year, and amortization of the leased asset totaled $37,550.
Lawn edging equipment with a carrying value of $6,140 was sold for $6,320.
A new lawn mower was purchased for $75,000. At the end of the year, a $25,000 note associated with the machine remains outstanding. Depreciation of the mower was $7,500.
Additional depreciation totaled $30,000.
RequiredPrepare the net position section of Shelburne’s statement of net position.
7. The Town of Mirbat operates an enterprise fund. Following is the information related to the fund’s 2020 operating activities.
a. Rental income of OMR47,222 was accrued. Subsequently, cash in the amount of OMR45,105 was received on accounts.
b. Cash expenses for the period included: administrative services, OMR12,603; maintenance and repairs, OMR36,441; supplies and materials, OMR3,896; and utilities, OMR15,062.
c. The Central Station Fund received a OMR30,000 transfer of funds from the General Fund.
d. Adjustments were made for depreciation OMR1,760 and for uncollectible accounts 334.
Required: Prepare general journal entries to record the Fund’s operating activities for the year.
This year Riverside began work on an outdoor amphitheater and concession stand at the city's park. It is to be financed by a $3,500,000 bond issue and supplemented by a $500,000 General Fund transfer. The following
transactions occurred during the current year:
1.The General Fund transferred $500,000 to the Park Building Capital Projects Fund (hint: credit "Other Financing Sources-Interfund Transfers In" for $500,000).
2.A contract was signed with Restin Construction Company for the major part of the project on a bid of $2,700,000.
3.Preliminary planning and engineering costs of $69,000 were vouchered for e Great Pacific Engineering Company. (This cost had not been encumbered, therefore, we do not need the reverse journal entries for
encumbrances, but we need to record expenditures and liability for this cost in the capital projects fund.)
4.An invoice in the amount of $1,000,000 was received from Restin for progress to date on the project.
5.The $3,500,000 bonds were issued at par.…
Chapter 7 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 7 - Prob. 1QCh. 7 - Explain the reporting requirements for internal...Ch. 7 - A member of the city commission insists that the...Ch. 7 - Prob. 4QCh. 7 - What is the purpose of the Restricted Assets...Ch. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - When do GASB standards require interfund...Ch. 7 - Prob. 9QCh. 7 - What is meant by segment information for...
Ch. 7 - Prob. 11QCh. 7 - Internal Service Fund Reporting. (LO7-2) Financial...Ch. 7 - Proprietary Fund Operating Statement. (LO7-1)...Ch. 7 - Enterprise Fund Golf Course Management. (LO7-1)...Ch. 7 - Prob. 17.1EPCh. 7 - Which of the following would most likely be...Ch. 7 - Under GASB standards, the City of Parkview is...Ch. 7 - Prob. 17.4EPCh. 7 - Which of the following events would generally be...Ch. 7 - Proprietary funds a. Are permitted to integrate...Ch. 7 - Prob. 17.7EPCh. 7 - Prob. 17.8EPCh. 7 - Prob. 17.9EPCh. 7 - Prob. 17.10EPCh. 7 - The City of Tutland issued 10 million, 6 percent,...Ch. 7 - The City of Tutland issued 10 million, 6 percent,...Ch. 7 - Prob. 18EPCh. 7 - Prob. 19EPCh. 7 - Central Garage Internal Service Fund. (LO7-2) The...Ch. 7 - Internal Service Fund Statement of Cash Flows....Ch. 7 - Tribute Aquatic Center Enterprise Fund. (LO7-5)...Ch. 7 - Net Position Classifications. (LO7-5) During the...Ch. 7 - Central Station Enterprise Fund. (LO7-5) The Town...Ch. 7 - Enterprise Fund Journal Entries and Financial...Ch. 7 - Net Position Classifications. (LO7-5) The Village...Ch. 7 - Enterprise Fund Statement of Cash Flows. (LO7-5)...Ch. 7 - AppendixSolid Waste Enterprise Fund. (LO7-6) Brown...
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