FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Question
A city has only one activity, its school system. The school system is accounted for within the general fund. For convenience, assume that, at the start of 2017, the school system and the city have no assets. During the year, the city assessed $400,000 in property taxes. Of this amount, it collected $320,000 during the year, received $50,000 within a few weeks after the end of the year, and expected the remainder to be collected about six months later. The city makes the following payments during 2017: salary expense, $100,000; rent expense, $70,000; equipment (received on January 1 with a five-year life and no salvage value), $50,000; land, $30,000; and maintenance expense, $20,000.
In addition, on the last day of the year, the city purchased a $200,000 building by signing a long-term liability. The building has a 20-year life and no salvage value, and the liability accrues interest at a 10 percent annual rate. The city also buys two computers on the last day of the year for $4,000 each. One will be paid for in 30 days and the other in 90 days. The computers should last for four years and have no salvage value. During the year, the school system charged students $3,000 for school fees and collected the entire amount. Any depreciation is recorded using the straight-line method.
- Produce a statement of net position and a statement of activities for this city’s government-wide financial statements.
- Produce a
balance sheet and a statement of revenues, expenditures, and changes in fund balance for the fund financial statements. Assume that
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 4 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Bay City uses the purchases method to account for supplies. At the beginning of the year the City had no supplies on hand. During the year the City purchased $600,000 of supplies for use by activities accounted for in the General Fund. The City used $400,000 of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of its fund financial statements, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be Expenditures $600,000; Supplies Inventory $200,000. Expenditures $600,000; Supplies Inventory $0. Expenditures $400,000; Supplies Inventory $200,000. Expenditures $400,000; Supplies Inventory $0.arrow_forwardhelp pleasearrow_forwardDon't give solution in image format..arrow_forward
- A city starts a solid waste landfill that it expects to fill to capacity gradually over a 12-year period. At the end of the first year, it is 7 percent filled. At the end of the second year, it is 17 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity. Which of the following is true for the Year 2 government-wide financial statements? a. Expense will be $100,000 and liability will be $170,000. b. Both expense and liability will be $100,000. c. Expense will be $90,000 and liability will be $180,000. d. Both expense and liability will be zero.arrow_forwardThe following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020: 1. Beginning balances were: Cash, $110,000; Taxes Receivable, $215,000; Accounts Payable, $65,000; and Fund Balance, $260,000. 2. The budget was passed. Estimated revenues amounted to $1,400,000 and appropriations totaled $1,394,000. All expenditures are classified as General Government. 3. Property taxes were levied in the amount of $1,000,000. All of the taxes are expected to be collected before February 2021. 4. Cash receipts totaled $970,000 for property taxes and $340,000 from other revenue. 5. Contracts were issued for contracted services in the amount of $125,000. 6. Contracted services were performed relating to $111,000 of the contracts with invoices amounting to $106,000. 7. Other expenditures amounted to $1,040,000. 8. Accounts payable were paid in the amount of $1,204,000. 9. The books were closed. Required: a. Prepare journal entries for the above…arrow_forwardThe City of Wolfe issues its financial statements for Year 4 (assume that the city uses a calendar year). The city's general fund is composed of two functions: (1) education and (2) parks. The city also utilizes capital projects funds for ongoing construction and an enterprise fund to account for an art museum. The city also has one discretely presented component unit. The government-wide financial statements indicate the following Year 4 totals. Education had net expenses of $668,000. Parks had net expenses of $147,000. Art museum had net revenues of $59,500. General revenues were $972,500. The overall increase in net position for the city was $217,000. The fund financial statements for Year 4 indicate the following: The general fund had an increase of $32,500 in its fund balance. The capital projects fund had an increase of $62,250 in its fund balance. The enterprise fund had an increase of $63,250 in its net position balance. Officials for the City of Wolfe define "available" as…arrow_forward
- Assume that the City of Coyote has already produced Its financlal statements for December 31, 2017, and the year then ended. The city's general fund was only for education and parks. Its capital projects funds worked wth each of these functlons at times during the current year. The city also had established an enterprise fund to account for Its art museum.arrow_forwardi need the answer quicklyarrow_forwardCampbell County uses the consumption method to record all inventories and prepayments. The County has a 3/31 fiscal year-end. On April 1, 2015, the county purchased a two-year insurance policy at a total cost of $400,000, paying for the policy out of the general fund. In the fund financial statements, the amount of insurance expenditures for the fiscal year ended 3/31/2016 would be A.) $400,000. B.) $300,000. C.) $200,000. D.) $100,000.arrow_forward
- Bay City uses the purchases method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purchased $600,000 of supplies for use by activities accounted for in the general fund. The city used $400,000 of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of its fund financial statements, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be A.) Expenditures $600,000; Supplies inventory $200,000. B.) Expenditures $600,000; Supplies inventory $0. C.) Expenditures $400,000; Supplies inventory $200,000. D.) Expenditures $400,000; Supplies inventory $0.arrow_forwardAssume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. The city's general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these functions at times during the current year. The city also maintained an enterprise fund to account for its art museum. The government-wide financial statements provide the following figures: • Education reports net expenses of $742,000. • Parks reports net expenses of $140,000. • Art museum reports net revenues of $73,250. • General government revenues for the year were $987,750 with an overall increase in the city's net position of $179,000. The fund financial statements provide the following for the entire year: • The general fund reports a $52,250 increase in its fund balance. • The capital projects fund reports a $62,500 increase in its fund balance. • The enterprise fund reports a $73,500 increase in its net position. The city asks…arrow_forwardCity X purchased $6,000 of new computers during the year from the general fund. Which of the following statements is correct about how this would be recorded? The fixed assets in the government wide financial statements would not increase. The fixed asset accounts in the government wide financial statements would increase $6,000 There are no long term fixed assets in governmental accounting. O The fixed asset accounts in the governmental fund statements would increase $6,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education