The general fund contracts with a construction firm to build an Afghan and Iraqi war memorial based on a design selected by The Afghan and Iraqi War Veterans Commission. The estimated cost of the project is $3.5 million. The general fund makes a $750,000 progress payment on the Afghan and Iraqi War Memorial contract. Stewardship asset expense increased by $750,000 at the Statement of Net Cost and also be referenced on the balance sheet without assigned dollar value Stewardship asset increased by $750,000 on Balance sheet Stewardship asset should be disclosed in notes to basic financial statements only answer please

The general fund contracts with a construction firm to build an Afghan and Iraqi war memorial based on a design selected by The Afghan and Iraqi War Veterans Commission. The estimated cost of the project is $3.5 million. The general fund makes a $750,000 progress payment on the Afghan and Iraqi War Memorial contract. Stewardship asset expense increased by $750,000 at the Statement of Net Cost and also be referenced on the balance sheet without assigned dollar value Stewardship asset increased by $750,000 on Balance sheet Stewardship asset should be disclosed in notes to basic financial statements only answer please

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

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St. George County has entered into a contract for the demolition and construction of a six-lane bridge. It is expected that the project will take three years to complete. The terms of the contract indicate that the county will retain 5 percent (retained percentage) from each progress billing. The contract also requires that the retained percentage be invested and accounted for in a separate fund. Investment of the retained percentage is for the benefit of the contractor, who will receive the retained percentage and investment earnings upon successful completion and acceptance of the bridge.Requireda. What type of fund should St. George County use to account for the retained percentage? Explain your answer.b. Record the following events in the retained percentage fund.1. A retained percentage was withheld from a progress payment of $900,000.2. The retained percentage was invested in certificates of deposit.3. Interest of $675 was received.4. At year-end, interest of $1,350 was accrued.…
On January 1, 2011, Sagada Company received a grant of P25,000,000 from the American government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over four years, respectively, P4,000,000, P3,000,000, P5,000,000 and P8,000,000. How much income from the government grant should be recognized in 2011? A. 20,000,000 B. 4,000,000 C. 30,000,000 D. 6,000,000
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Altona City opened a landfill that it elects to account for in an enterprise fund. At the time the landfill was opened the government estimated total capacity of the landfill to be 5 million cubic feet, useful life to be 20 years, and total closure and postclosure costs to be $18 million. At the end of Year 1, the government reestimated total closure costs to be $18.3 million and estimated capacity to be same as the original estimate. At the end of Year 2, the government reestimated total capacity to be 4.8 million cubic feet and total closure costs to be $18.5 million. At the end of Year 3, the government reestimated useful life to be 17 years but capacity remained unchanged from the preceding year and closure and postclosure costs were estimated to be $18.4 million. REQUIRED: Prepare journal entries in the enterprise fund to record the following events. a)During Year 1, the city estimates that 300,000 cubic feet of capacity were used. Record the landfill expense. b)During…
This year Riverside began work on an outdoor amphitheater and concession stand at the city’s park. It is to be financed by a $5,500,000 bond issue and supplemented by a $700,000 General Fund transfer. The following transactions occurred during the current year: The General Fund transferred $700,000 to the Park Building Capital Projects Fund. A contract was signed with Restin Construction Company for the major part of the project on a bid of $4,700,000. Preliminary planning and engineering costs of $89,000 were vouchered for the Great Pacific Engineering Company. (This cost had not been encumbered.) A payable was recorded for an $28,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new concession stand. An invoice in the amount of $2,000,000 was received from Restin for progress to date on the project. The $5,500,000 bonds were issued at par. The amount billed by the contractor (see Transaction 5) less 5 percent retained was paid.…
On January 1, 20x1, ABC Co. received 2,000,000 grant from the government to aid in the construction of a new building. The construction of the building was finished on March 31, 20x2 for a total cost of 6,000,000. The building is estimated to have a useful life of 30 years and a residual value of 1,000,000. If ABC Co. uses the gross presentation, how much is the income from the government grant in 20x1? If ABC Co. uses the gross presentation, how much is the carrying amount of the building on December 31, 20x2? If ABC Co. uses the gross presentation, how much is the income from the government grant in 20x2? If ABC Co. uses the gross presentation, how much is the depreciation expense in 20x2? If ABC Co. uses the gross presentation, how much is the balanced of the deferred income from government grant on December 31, 20x2? If ABC Co. uses the net presentation, how much is the carrying amount of the building on December 31, 20x2? If ABC Co. uses the net presentation, how much is the…
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This project must fund the construction of an on/off-interchange from an adjacent highway, a 2-mile length of 4-lane divided roadway, and a bridge that will cross a 500-foot wide river. The entire project is estimated to require 2 years to complete following planning & design. a. The interchange is projected to cost $50 million. It will need to begin construction in 18 months. Rights-of-way acquisition, surveying, and permitting have already been completed and paid for by the program. There will be 2 additional project phases: 1) planning & design, 2) construction. Each will require payment at the end of the phase. The projected cost of the 1st phase of the project is $2.5 million. The 1st phase is expected to need the entire 18 months prior to the start of construction and must be completed before construction can begin. The 2nd phase is projected to cost the remaining $47.5 million. It is expected to be completed at the end of the 2-year period following planning &…

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		Stewardship asset expense increased by $750,000 at the Statement of Net Cost and also be referenced on the balance sheet without assigned dollar value
		Stewardship asset increased by $750,000 on Balance sheet
		Stewardship asset should be disclosed in notes to basic financial statements only