The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations: 1. Deferred inflows of resources-property taxes of $69,400 at the end of the previous fiscal year were recognized as property tax revenue in the current yearAc€?cs Statement of Revenues, Expenditures, and Changes in Fund Balance. 2. The City levied property taxes for the current fiscal year in the amount of $10,000,000. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $600,000 of the taxes had not been collected. It was estimated that $320,000 of that amount would be collected during the 60-day period after the end of the fiscal year and that $80,000 would be collected after that time. The City had recognized the maximum of property taxes allowable under modified accrual accounting. 3. In addition to the expenditures recognized under modified accrual accounting, the City computed that $175,000 should be accrued for compensated absences and charged to public safety. 4. The CityAc€?cs actuary estimated that pension expense under the CityAc€?cs public safety employees pension plan is $229,000 for the current year. The City, however, only provided $207,000 to the pension plan during the current year. 5. In the Statement of Revenues, Expenditures, and Changes in Fund Balances, General Fund transfers out included $500,000 to a debt service fund, $600,000 to a special revenue fund, and $900,000 to an enterprise fund. Review the financial information pertaining to Southern State University in problem 9-5 on pages 300 of your text. Prepare, in good form, a Statement of Net Position for Southern State University as of June 30, 2015. Exercise 9-5: Southern State University had the following account balances as of June 30, 2015. Debits are not distinguished from credits, so assume all accounts have a Ac€A?normalAc€?? balance: Accounts receivable $354,000 Accounts payable 265,000 Cash and cash equivalents 120,000 Accrued interest payable 225,000 Endowment investments 6,126,000 General obligation bonds payable (related to capital acquisition) 1,350,000 Inventories 333,000 Short-term investments-unrestricted 1,444,000 Net position-restricted-nonexpendable 6,126,000 Restricted cash and cash equivalents 92,000 Capital assets, net of depreciation 7,223,000 Revenue bonds payable (related to capital acquisition) 2,200,000 Long-term investments 1,683,000 Long-term liabilities-current portion (related to capital acquisition) 200,000 Net position-restricted-expendable 1,900,000 Net investment in capital assets ? Net positions-unrestricted ? Required: Prepare, in good form, a Statement of Net Position for Southern State University as of June 30, 2015. Part Three:Review the financial transactions pertaining to the Cancer Research Center in problem 10-8 on pages 333 and 334. 1. On the books of Cancer Research Center, record the pledge on January 1 in the temporarily restricted asset class, assuming the appropriate discount rate is 5% on an annual basis. The appropriate discount factor is 4.33. 2. Record the increase in the present value of the receivable in the temporarily restricted net asset class as of December 31. 3. Record the receipt of the first $30,000 on December 31 and the payment to the researcher. Indicate in which asset class (unrestricted, temporarily restricted) each account is recorded.
The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations:
1. Deferred inflows of resources-property taxes of $69,400 at the end of the previous fiscal year were recognized as property tax revenue in the current yearAc€?cs Statement of Revenues, Expenditures, and Changes in Fund Balance.
2. The City levied property taxes for the current fiscal year in the amount of $10,000,000. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $600,000 of the taxes had not been collected. It was estimated that $320,000 of that amount would be collected during the 60-day period after the end of the fiscal year and that $80,000 would be collected after that time. The City had recognized the maximum of property taxes allowable under modified accrual accounting.
3. In addition to the expenditures recognized under modified accrual accounting, the City computed that $175,000 should be accrued for compensated absences and charged to public safety.
4. The CityAc€?cs actuary estimated that pension expense under the CityAc€?cs public safety employees pension plan is $229,000 for the current year. The City, however, only provided $207,000 to the pension plan during the current year.
5. In the Statement of Revenues, Expenditures, and Changes in Fund Balances, General Fund transfers out included $500,000 to a debt service fund, $600,000 to a special revenue fund, and $900,000 to an enterprise fund.
Review the financial information pertaining to Southern State University in problem 9-5 on pages 300 of your text. Prepare, in good form, a Statement of Net Position for Southern State University as of June 30, 2015.
Exercise 9-5:
Southern State University had the following account balances as of June 30, 2015. Debits are not distinguished from credits, so assume all accounts have a Ac€A?normalAc€?? balance:
|
|
$354,000 |
|
Accounts payable |
265,000 |
|
Cash and cash equivalents |
120,000 |
|
Accrued interest payable |
225,000 |
|
Endowment investments |
6,126,000 |
|
General obligation bonds payable (related to capital acquisition) |
1,350,000 |
|
Inventories |
333,000 |
|
Short-term investments-unrestricted |
1,444,000 |
|
Net position-restricted-nonexpendable |
6,126,000 |
|
Restricted cash and cash equivalents |
92,000 |
|
Capital assets, net of |
7,223,000 |
|
Revenue bonds payable (related to capital acquisition) |
2,200,000 |
|
Long-term investments |
1,683,000 |
|
Long-term liabilities-current portion (related to capital acquisition) |
200,000 |
|
Net position-restricted-expendable |
1,900,000 |
|
Net investment in capital assets |
? |
|
Net positions-unrestricted |
? |
Required:
Prepare, in good form, a Statement of Net Position for Southern State University as of June 30, 2015.
Part Three:
Review the financial transactions pertaining to the Cancer Research Center in problem 10-8 on pages 333 and 334.
1. On the books of Cancer Research Center, record the pledge on January 1 in the temporarily restricted asset class, assuming the appropriate discount rate is 5% on an annual basis. The appropriate discount factor is 4.33.
2. Record the increase in the present value of the receivable in the temporarily restricted net asset class as of December 31.
3. Record the receipt of the first $30,000 on December 31 and the payment to the researcher. Indicate in which asset class (unrestricted, temporarily restricted) each account is recorded.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
