A local citizen gives the City of Salem a painting by Picasso to display in city hall. Assume that the city does not choose to report the painting on the government-wide financial statements as a capital asset. Must the city report a revenue for the gift?
Q: A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what…
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: A city receives a copy of its original charter from the year 1799 as a gift from a citizen. The…
A: Government-wide financial statements are the overall financial statement encompassing the whole…
Q: Al Shahri community, located in the City of Duqm, voted to form a local improvement district to fund…
A: A journal entry is the act of recording of transactions of both economic and non-economic in nature.
Q: Assume in question (9) that the city does not choose to report the painting on the government-wide…
A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…
Q: The City of Dickens has a fiscal year ending December 31, Year 5. The city council is viewed as the…
A: Indicate whether the overall statement is true or false: a. Answer: False Explanation: The style of…
Q: Planter County received the following proceeds that are legally restricted to expenditure for…
A: Given: Affected property of levies = $ 500,000 Finance for road repairs by gasoline taxes = $…
Q: A city creates a solid waste landfill. It assesses a charge to every person or company that uses the…
A: Not for profit organizations: The business entities whose motive of the business is not to reap…
Q: Al Shahri community, located in the City of Duqm, voted to form a local improvement district to fund…
A: Given, Interest Rate = 4.5%
Q: The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of…
A:
Q: When a city holds pension monies for city employees, the monies should be recorded in: O The general…
A: A Fiduciary fund
Q: Al Shahri community, located in the City of Duqm, voted to form a local improvement district to fund…
A: Journal entry: The purpose of preparing the journal entire to enter the required transaction into…
Q: A city starts a public library that has separate incorporation and gets some of its money for…
A: Determine the following statement is true or false with a brief explanation. If the city appoints 9…
Q: A city acquires a new police car accounted for in the general fund. How should the city report the…
A: Answer: Option a.
Q: The state government passes a law requiring localities to upgrade their water treatment facilities.…
A: Identify the correct option: Here, the state government passes a law requiring localities to…
Q: A city constructs a special assessment project (a sidewalk) for which it is secondarily liable. The…
A: Expenses: Expenses are costs incurred for the operations of a business. The costs incurred for…
Q: A city provides a local business with a tax abatement so that real estate taxes will be avoided for…
A: Option d. The above transaction should be disclosed only as a footnote disclosure.
Q: hat amount should be reported in the City’s special revenue funds?
A: Special revenue fund is the account which is established through government in order to collect…
Q: A citizen of the City of Townsend makes a donation of $22,000 in investments. The citizen has…
A: The correct answer is 3. i.e. Permanent Funds. This asset should be reported as permanent funds.
Q: The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of…
A:
Q: This year, Port City was sued for injuries sustained when a citizen slipped and broke her hip on the…
A: Here probability of payment is higher
Q: ABC Cooperative paid municipal taxes and license fees to the city government unaware that under a…
A: The answer is stated below:
Q: A city creates a solid waste landfill. It assesses a charge to every person or company that uses the…
A:
Q: The City of Larissa recently opened a solid waste landfill to serve the area's citizens and…
A: Write a memo to the government officials describing the factors that should influence the decision…
Q: Identification of activities with particular governmental-type funds Using only the…
A: Governmental-Type Funds: “Used to account for activities largely financed by taxes, grants, and…
Q: The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of…
A: Given information is: The City of Wilson receives a large sculpture valued at $240,000 as a gift to…
Q: A local citizen gives the City of Salem a painting by Picasso to display in city hall. Under what…
A: Definition: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived…
Q: Balsam City's library board is appointed by the city council, which has agreed to subsidize the…
A: Reporting entity means an entity which satisfies the parameters and conditions for being reported.…
Q: Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the…
A: Net position in the balance sheet (or statement of net position) of a local and state government is…
Q: The police department of the city of Elizabeth acquires a new police car during the current year. In…
A: Revenue: It is the amount earned by a company or governmental organization on the delivery of goods…
Q: The Town of Elizabeth operates the old train station as an enterprise fund. The train station is on…
A: The governmental-wide financial statement records the financial information on the basis of accrual…
Q: The City of Barnes operates a central motor pool as an internal service fund for the benefit of the…
A: Money, assets, or property of the federal government, a state government, or a local government,…
Q: Muscat City received the following proceeds that are legally restricted. Taxes assessments to…
A: Special revenue fund is the account which is established through government in order to collect the…
Q: Prepare journal entries for each of the following transactions entered into by the City of Loveland.…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: 1) State whether each of the following items should be classified as taxes, licences and permits,…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: The citizens of a geographic area of the National City authorized a special assessment to be imposed…
A: Given is the information regarding the people of an area of the National city.
Q: uction of a county health center. The land had cost the resident $2.5 million. The county sold the…
A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…
Q: On December 1, 2017, a state government awards a city government a grant of $1 million to be used…
A: The option 2 is incorrect as it indicates the incorrect statement that is, if this grant has no…
Q: On December 1, 2017, a state government awards a city government a grant of $1 million to be used…
A: Definition: The revenue recognition principle: The revenue recognition principle refers to the…
Q: List the appropriate fund(s) that will be affected for each of the following transactions for Sienna…
A: Definition: General Fund: It is the primary fund used by an entity. Debt Service Fund: The purpose…
Q: Pel Museum is a private not-for-profit entity. If it receives a contribution of historical…
A: Not-for Profit Organization: A not for profit organization is a business type operated by…
Q: The state government passes a law requiring localities to upgrade their water treatment facilities.…
A: The correct answer is 3. Government-mandated nonexchange revenue.
Q: The city of Belle collects property taxes for other local governments—Beau County and the Landis…
A: Journal Entry Here incurred the journal entry for the use of custodial fund to the three different…
Q: To improve its recreation facilities and to reduce its unemployment rate, Empire State created the…
A: Government accounting is an accounting method used to record financial transactions conducted by the…
Q: A teacher working for the City of Lights will be provided with a defined benefit pension plan. The…
A: Two categories of authoritative GAAP for local and state governments are Category A and Category B.…
Q: In response to a petition signed by the property owners of Riverdale Subdivision, the city of…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: The City of Bagranoff holds $90,000 in cash that will be used to make a bond payment when the debt…
A: The correct answer is 2. Fund balance—assigned goes down and fund balance—committed goes up.
Q: A city receives a copy of its original charter from the year 1799 as a gift from a citizen. The…
A: 1. Determine the following statement is true or false: Answer: True: Explanation: This statement is…
A local citizen gives the City of Salem a painting by Picasso to display in city hall. Assume that the city does not choose to report the painting on the government-wide financial statements as a capital asset. Must the city report a revenue for the gift?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. Which of the following is true for reporting the gift within the government-wide financial statements?a. A capital asset of $240,000 must be reported.b. No capital asset will be reported.c. If conditions are met, recording the sculpture as a capital asset is optional.d. The sculpture will be recorded but only for the amount paid by the city.The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. Which of the following is true for reporting the gift within the government-wide financial statements? A capital asset of $240,000 must be reported. No capital asset will be reported. If conditions are met, recording the sculpture as a capital asset is optional. The sculpture will be recorded but only for the amount paid by the city.Assume in question (9) that the city does not choose to report the painting on the government-wide financial statements as a capital asset. Must the city report a revenue for the gift?
- The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. which of the following statements is true about reporting a revenue in connection with this gift? Choose the correct.a. A revenue will be reported.b. Revenue is reported but only if the asset is reported.c. If the asset is not capitalized, no revenue should be recognized.d. As a gift, no revenue would ever be reported.A city receives a copy of its original charter from the year 1799 as a gift from a citizen. The document will be put under glass and displayed in the city hall for all to see. The fair value is estimated at $10,000. Indicate whether each of the following independent statements is true or false and briefly explain each answer.a. If the city government does not have a policy for handling any proceeds if it ever sells the document, the city must report a $10,000 asset within its government-wide financial statements.b. Assume that this gift qualifies for optional handling and that the city chooses to report it as an asset. For the government-wide financial statements, depreciation is required.c. Assume this gift qualifies for optional handling and the document is deemed to be exhaustible. The city must report an immediate expense of $10,000 in the government-wide financial statements.d. Assume that this gift qualifies for optional handling. The city must make a decision as to whether to…A city receives a copy of its original charter from the year 1799 as a gift from a citizen. The document will be put under glass and displayed in the city hall for all to see. The fair value is estimated at $10,000. Indicate whether each of the following Independent statements is true or false and briefly explain each answer. If the city government does not have a policy for handling any proceeds if it ever sells the document, the city must report a $10,000 asset within its government-wide financial statements. Assume that this gift qualifies for optional handling and that the city chooses to report it as an asset. For the government-wide financial statements, depreciation is required. Assume this gift qualifies for optional handling and the document is deemed to be exhaustible. The city must report an immediate expense of $10,000 in the government-wide financial statements. Assume that this gift qualifies for optional handling. The city must make a decision as to whether to…
- A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should these transactions be recorded in an agency fund? Never; the work is reported in the capital projects funds. Only if the city is secondarily liable for any debt incurred to finance construction costs. Only if the city is in no way liable for the costs of the construction. In all cases.ABC Cooperative paid municipal taxes and license fees to the city government unaware that under a new law it was exempt from all taxes and government fees. Later, ABC Cooperative learned of its exemption and sought to recover from the city government the taxes it paid. Question: Can ABC Cooperative recover the taxes it earlier paid to the city government? Why or why not?During the current year, a government buys land for $80,000. Which of the following is not true? Choose the correct.a. The land could be reported as an asset by the business-type activities in the government-wide financial statements.b. The land could be reported as an asset by the governmental activities in the government-wide financial statements.c. The land could be reported as an asset by the proprietary funds in the fund financial statements.d. The land could be reported as an asset by the governmental funds in the fund financial statements.
- Ormond beach received a gift of corporate stock valued at $1,200,000 on the date of the gift. The donor specified that the principal amount of the gift be maintained in perpetuity, but that earnings can be used to acquire works of art to improve the appearance of public buildings. All changes in fair value are to increase or decrease the principal amount of the gift. Assuming that Ormond beach uses a permanent fund to account for the endowment and a special revenue fund to account for the earmarked earnings from the endowment, explain the accounting process for (1) receipt of the original gift, (2) receipt of quarterly dividends, (3) notification that fair value of the original stock increased by $3,000 during the year, and (4) the effect on fund balances of closing temporary accounts at year-end. (Note: Ignore the effects of the transactions at the government-wide level).A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should these transactions be recorded in an agency fund? Choose the correct.a. Never; the work is reported in the capital projects funds.b. Only if the city is secondarily liable for any debt incurred to finance construction costs.c. Only if the city is in no way liable for the costs of the construction.d. In all cases.On January 1, 2020, a rich citizen of the Town of Ristoni donates a painting valued at $370,000 to be displayed to the public in a government building. Although this painting meets the three criteria to qualify as an artwork, town officials choose to record it as an asset. The gift has no eligibility requirements. These officials judge the painting to be inexhaustible so that depreciation will not be reported. o. For the year ended December 31,2020 , what does the town report on its government-wide financial statements in connection with this gift? b. How does the answer to requirement (a) change if the government decides to depreciate this asset over a 10-year period using straight-line depreciation? c. How does the answer to requirement (a) change if the government decides not to capitalize the asset? Complete this question by entering your answers in the tabs below. Required A For the year ended December 31,2020, what does the town report on its government-wide financial statements…