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 8, Problem 23EP
Pass-through Custodial Funds. (LO8-2) Evergreen County acts as the disbursing agent for a state grant for the performing arts. The state is responsible for determining which local governments are eligible for the grant money and for following up to ensure that the recipients comply with the requirements of the grant. The county receives the grant funds and disburses them according to the schedule provided by the state. When the county was asked to participate, the county's attorney was concerned that the county might be held responsible for any disallowed costs. The state agreed to accept responsibility for any disallowed costs, so the county decided to act as the custodian for the state for this grant.
The schedule for the grant funds to be awarded in the current fiscal year is shown below:
Required
- a. Prepare the general
journal entries necessary to record Evergreen County’s receipt and disbursement of the grant money in March. - b. Prepare the general journal entries required to record Aspen Township's receipt of the funds; assume that funds arc to be used to construct a new performing arts center and all time and eligibility requirements have been met.
- c. How would the activities related to the grant be reported in the county's financial statements?
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Evergreen County acts as the disbursing agent for a state grant for the performing arts. The state is responsible for
determining which local governments are eligible for the grant money and for following up to ensure that the recipients
comply with the requirements of the grant. The county receives the grant funds and disburses them according to the
schedule provided by the state. When the county was asked to participate, the county's attorney was concerned that the
county might be held responsible for any disallowed costs. The state agreed to accept responsibility for any disallowed
costs, so the county decided to act as the custodian for the state for this grant.
The schedule for the grant funds to be awarded in the current fiscal year is shown below:
City of Boulder
Aspen Township
Snowton
Firtree Village
Total
$2,250,000
1,550,000
1,050,000
750,000
$5,600,000
The County of Maxnell decides to create a waste management department and offer its services to the public for a fee. As a result.
county officlals plan to account for this activity as an enterprise fund. Assume the Information is gathered so that the county can
prepare fund financial statements. Only entries for the waste management department are required here:
January 1 Receive unrestricted funds of $162,800 from the general fund as permanent financing.
Febrauary 1 Borrow an additional $120,e0 from a local bank at a 12 percent annual interest rate.
March 1 Order a truck at an expected cost of $114, 5ee.
April 1 Receive the truck and make full paynent. The actual cost including transportation was $115,000. The truck has a 10-
year life and no residual value. The county uses straight-line depreciation.
May 1 Receive a $23,800 cash grant from the state to help supplement the pay of the department workers. According to the
grant, the money must be used for that purpose.
June 1 Rent a…
Fulbright County constructed a library in one of the county's high-growth areas. The construction was funded by a number of sources.
Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within
the current fiscal year. The county operates on a calendar-year basis.
Required
Prepare a journal entry for capital projects fund and governmental activities at the government-wide level. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)
Fund/ Governmental
Activities
General Journal
1. The county issued $6,700,000 of 6 percent bonds at par. Proceeds from the bonds were to be used for construction of the library.
1
Capital Projects Fund
Transaction.
2. A $720,000 federal grant was received to help finance construction of the library.
2
Capital Projects Fund
3. The Library Special Revenue Fund transferred $320,000 for use in construction of the library.…
Chapter 8 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 8 - What are the criteria for determining if a...Ch. 8 - Prob. 2QCh. 8 - Identify the different types of trust funds and...Ch. 8 - Describe the basic activities conducted by a tax...Ch. 8 - Explain how the financial reporting of fiduciary...Ch. 8 - Prob. 6QCh. 8 - How are external investment pool activities...Ch. 8 - What is a private-purpose trust fund? There are...Ch. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - What is OPEB and how is OPEB reported by...Ch. 8 - Prob. 12CCh. 8 - Prob. 13CCh. 8 - Prob. 14CCh. 8 - Prob. 15CCh. 8 - Prob. 17.1EPCh. 8 - Which of the following is not a fiduciary fund? a....Ch. 8 - Prob. 17.3EPCh. 8 - Fiduciary fund activities are not included in the...Ch. 8 - Prob. 17.5EPCh. 8 - Prob. 17.6EPCh. 8 - The city has installed sidewalks using special...Ch. 8 - Prob. 17.8EPCh. 8 - Fiduciary funds a. Are accounted for using the...Ch. 8 - Prob. 17.10EPCh. 8 - Prob. 17.11EPCh. 8 - An investment trust fund would report in the...Ch. 8 - Prob. 17.13EPCh. 8 - Which pension fund financial statement or schedule...Ch. 8 - Prob. 17.15EPCh. 8 - Prob. 18.1EPCh. 8 - Prob. 18.2EPCh. 8 - The county collects taxes on behalf of the county,...Ch. 8 - Prob. 18.4EPCh. 8 - Prob. 18.5EPCh. 8 - At the date of the creation of the investment...Ch. 8 - The city council of the City of Great Falls...Ch. 8 - The city council of the City of Great Falls...Ch. 8 - Prob. 18.9EPCh. 8 - Prob. 18.10EPCh. 8 - Tax Custodial Fund. (LO8-2) The county collector...Ch. 8 - Special Assessment Debt. (LO8-2) Residents of...Ch. 8 - Identification of Fiduciary Funds. (LO8-2, LO8-3,...Ch. 8 - Investment Trust Fund. (LO8-3) The Albertville...Ch. 8 - Pass-through Custodial Funds. (LO8-2) Evergreen...Ch. 8 - Fiduciary Financial Statements. (LO8-4) Ray County...Ch. 8 - Fiduciary Fund Financial Statements. (LO8-4)...Ch. 8 - Prob. 26EPCh. 8 - Prob. 27EP
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