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 28EP
Appendix—Solid Waste Enterprise Fund. (LO7-6) Brown County operates a solid waste landfill for the citizens of the county. The following events occurred during the county’s fiscal year ended September 30.
- 1. The county paid interest costs of $6,869,000; of this amount, $214,000 was required to be capitalized to construction work in progress. Amortization of bond premiums was $167,000.
- 2. The county is self-insured through an internal service fund for workers’ compensation, automotive, and general liability insurance. The Solid Waste Enterprise Fund participates in the county-run program, and the amount paid for the year was $1,069,000.
- 3. The county’s recorded value of investments as of September 30 was $129,638,000. Fair market value was determined to be $133,590,000.
- 4. The fund bills franchise haulers, and at September 30, the balance in Accounts Receivable was $4,687,000. The Allowance for Uncollectible Accounts showed a balance of $134,000, but an aging of accounts determined that the balance should be $179,000.
- 5. The county’s landfill has a total space of 54,000 cubic yards (cy). The county has projected that future closure and postclosure care costs will be $60,600,000. The county’s estimate of cubic yards consumed as of September 30 is 13,500 cy. The balance in the liability account for closure and postclosure costs as of September 30 of the previous year was $13,350,000. (Hint: The current liability account balance should be subtracted from the total proportion of landfill cubic yards used to arrive at the current year’s expense.)
Required
- a. Prepare general
journal entries to record the Solid Waste Disposal Fund’s activities shown above. - b. Based on the information provided above, does it appear that the fund managers are complying with GASB standards for recognition of closure and postclosure care costs? Explain.
- c. The county has set aside funds to meet its financial obligations related to closure and postclosure care costs in the amount of $12,670,000. Where would these funds be reported? Regulations require that solid waste disposal funds have current resources available to satisfy at least 90 percent of the estimated current liability. Does it appear that the Solid Waste Disposal Fund has met this requirement? Why or why not?
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The City of Jonesboro engaged in the following transactions during the fiscal year ended September 30, 2018. Record the following transactions related to interfund transfers. Be sure to indicate in which fund the entry is being made.
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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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