How does the adoption of a budget in a governmental entity differ from the adoption of a budget by a commercial enterprise? Following are a number of unrelated transactions for K-Town, some of which affect governmental activities at the government-wide level. When does GAAP require the use of a debt service fund? The amount billed by the contractor see Transaction 7 less 5 percent retainage was paid. Cash received during was as follows: Assume a yield on sinking fund investments of 6 percent per annum, compounded semiannually. Is it mandatory that a governmental entity use a capital project fund for GAAP purposes?
An appropriation should be provided only for the interest payment due on January 1, Explanations may be omitted. What types of activities are recorded under the internal services account? Actual interest earned on sinking fund investments at year-end June 30, was the same as the amount budgeted [see a 1 and a 3 ]. Should the estimated impairment loss be reported as an extraordinary item? Prepare a statement of revenues, expenditures, and changes in fund balance for the debt service fund for the year ended June 30,
Also record an accrual for all interfund transfers to be received from the General Fund during the year. Is it mandatory that a governmental entity use a capital project fund for GAAP purposes? The City of Jamestown hokework agreed to acquire a new city maintenance building under a capital lease agreement.
Show the entry that should be made at the inception of the lease in the government activities journal. Assume a yield on sinking fund investments of 6 percent per annum, compounded semiannually. Interest is an expenditure of the capital projects fund and, per GASB standards, will not be capitalized as part of the cost of street improvements. This cost had not been encumbered.
For each entry you prepare, name the fund in which the entry should be made.
Basic Financial Statements Graded. When does GAAP require the use of a debt service fund? Should the estimated impairment loss be reported as an extraordinary item? Week 5 DQ 2 Financial Reporting: Show the entry that should be made in a capital projects fund at the inception acct the lease after the initial payment has been made.
None of the transactions has been recorded yet. What types of activities are recorded homewofk the internal services account? No money was immediately available for paying these costs credit Vouchers Payable. Following are transaction data for a term bonds issue for the City of Nevin.
Using information provided by the trial balance, answer the following. Why are there major differences between governmental accounting systems vs. Please provide an explanation as to why accounting transactions for governmental activities as the governmental-wide level tend to be reported differently than transactions for the General Fund?
Prepare journal entries to record the preceding information in the general ledger accounts for the Street Improvement Fund.
ACCT 567 WEEK 2 CASE STUDY I
What basis of accounting is used to report governmental activities in government-wide financial hojework On December 28,the city issued checks to bondholders for the interest payment due on January 1, Explanations may be omitted.
As a special item? This interest adds to the sinking fund balance. Interest is payable semiannually on January 1 and July 1.
Did the debt service fund perform a debt refunding? The bond anticipation notes and interest thereon were repaid see Transaction 1.
ACCT ACCT Week 6 Quiz Answers | Product Assignments | Homework, How to plan, Case study
Assume the budget has already been recorded for the General Fund. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly before the due dates.
You need not provide the journal entry or entries acdt. InFalts City began work to improve certain streets to be financed by a bond issue and supplemented by a federal grant.
Based on this information: Actual interest earned on sinking fund investments at year-end June 30, was the same as the amount budgeted [see a 1 and a 3 ]. The addition for the sinking accy was invested immediately in 6 percent certificates of deposit.