Problem 5: Comparing the measurement focus and basis of accounting of governmental funds with the measurement focus and basis of accounting of proprietary fundsThe information below pertains to the Village of Brexitville for the year ended December 31, 2022.Purchased 10 HP printers at the beginning of 2022 for $11,000; the printers are expected to last 4 years and have a salvage value of $1,000;Paid $42,000 to the federal government representing the Village’s share of payroll taxes for FICA and Medicare;Paid $50,000 to retire bonds payable; paid interest on outstanding bonds of $1,000;Received a bill for $2,000 on January 2, 2023, from Peoples Gas for natural gas used to heat government facilities in November and December, 2022.Required:Compute total expenditures for the local government assuming transactions A, B, and D are recorded in the general fund, and transaction C is recorded in a debt service fund.Compute total expenses for the government assuming all transactions are recorded in the Village’s water utility enterprise fund. The Village uses straight-line depreciation.

General Fund - This fund is used to record the core administrative and operational tasks of the…

Answered: Problem 5: Comparing the measurement…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 5: Comparing the measurement focus and basis of accounting of governmental funds with the measurement focus and basis of accounting of proprietary funds

The information below pertains to the Village of Brexitville for the year ended December 31, 2022.

Purchased 10 HP printers at the beginning of 2022 for $11,000; the printers are expected to last 4 years and have a salvage value of $1,000;
Paid $42,000 to the federal government representing the Village’s share of payroll taxes for FICA and Medicare;
Paid $50,000 to retire bonds payable; paid interest on outstanding bonds of $1,000;
Received a bill for $2,000 on January 2, 2023, from Peoples Gas for natural gas used to heat government facilities in November and December, 2022.

Required:

Compute total expenditures for the local government assuming transactions A, B, and D are recorded in the general fund, and transaction C is recorded in a debt service fund.
Compute total expenses for the government assuming all transactions are recorded in the Village’s water utility enterprise fund.

The Village uses straight-line depreciation.

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