ADVANCED ACCOUNTING
13th Edition
ISBN: 9781264046263
Author: Hoyle
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 17, Problem 30P
a.
To determine
Record the
b.
To determine
Record the Journal entries in the books of R.
c.
To determine
Record the Journal entries in the books of R.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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…
On January 1, 2017, a rich citizen of the Town of Ristoni donates a painting valued at $300,000 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. There are no eligibility requirements for the gift. The asset is judged to be inexhaustible so that depreciation will not be reported.
For the year ended December 31, 2017, what will be reported on government-wide financial statements in connection with this gift?
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?
How does the answer to requirement (a) change if the government decides not to capitalize the asset?
On January 1, 2020, a rich citizen of the Town of Ristoni donates a painting valued at $300,000 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.
For the year ended December 31, 2020, what does the town report on its government-wide financial statements in connection with this gift?
How does the answer to (a) change if the government decides to depreciate this asset over a 10-year period using straight-line depreciation?
How does the answer to (a) change if the government decides not to capitalize the asset?
Chapter 17 Solutions
ADVANCED ACCOUNTING
Ch. 17 - Prob. 1QCh. 17 - Prob. 2QCh. 17 - Prob. 3QCh. 17 - Prob. 4QCh. 17 - A landfill is scheduled to be filled to capacity...Ch. 17 - The City of VanStone operates a solid waste...Ch. 17 - Prob. 7QCh. 17 - Prob. 8QCh. 17 - Prob. 9QCh. 17 - Prob. 10Q
Ch. 17 - Prob. 11QCh. 17 - Prob. 12QCh. 17 - Prob. 13QCh. 17 - What does a comprehensive annual financial report...Ch. 17 - Prob. 15QCh. 17 - Prob. 16QCh. 17 - What is the difference between a blended component...Ch. 17 - Prob. 18QCh. 17 - Prob. 19QCh. 17 - Prob. 20QCh. 17 - Prob. 21QCh. 17 - How are internal service funds reported on...Ch. 17 - Prob. 23QCh. 17 - A general purpose government takes over a special...Ch. 17 - Prob. 25QCh. 17 - Prob. 26QCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - A city agrees to allow the Jones Company to...Ch. 17 - Prob. 5PCh. 17 - A city creates a solid waste landfill. It assesses...Ch. 17 - Prob. 7PCh. 17 - If this landfill is judged to be a proprietary...Ch. 17 - If this landfill is judged to be a governmental...Ch. 17 - The City of Nomanchester has a defined benefit...Ch. 17 - Prob. 11PCh. 17 - Prob. 12PCh. 17 - Prob. 13PCh. 17 - Prob. 14PCh. 17 - A city builds sidewalks throughout its various...Ch. 17 - Prob. 16PCh. 17 - Prob. 17PCh. 17 - Prob. 18PCh. 17 - Prob. 19PCh. 17 - Prob. 20PCh. 17 - Prob. 21PCh. 17 - Prob. 22PCh. 17 - Prob. 23PCh. 17 - Prob. 24PCh. 17 - Prob. 25PCh. 17 - Prob. 26PCh. 17 - On January 1, 2017, the City of Hastings created a...Ch. 17 - Prob. 28PCh. 17 - Prob. 29PCh. 17 - Prob. 30PCh. 17 - Prob. 31PCh. 17 - Prob. 32PCh. 17 - The City of Francois, Texas, has begun the process...Ch. 17 - The County of Maxnell decides to create a...Ch. 17 - The following information pertains to the City of...Ch. 17 - Prob. 36PCh. 17 - Prob. 37PCh. 17 - Prob. 38PCh. 17 - For each of the following, indicate whether the...Ch. 17 - For problems 40 through 43, use the following...Ch. 17 - Prob. 41PCh. 17 - Prob. 42PCh. 17 - On the first day of the year, the City of Wolfe...Ch. 17 - A city has a solid waste landfill that was filled...Ch. 17 - Use the same information as in problem 44 except...Ch. 17 - Prob. 46PCh. 17 - Prob. 47PCh. 17 - Prob. 48PCh. 17 - Prob. 2DYSCh. 17 - Read the following journal article: 25 Years of...Ch. 17 - Prob. 4DYSCh. 17 - Prob. 5DYSCh. 17 - The City of Larissa recently opened a solid waste...
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
- On January 1, 2017, the City of Graf pays $60,000 for a work of art to display in the local library. The city will take appropriate measures to protect and preserve the piece. However, if the work is ever sold, the money received will go into unrestricted funds. The work is viewed as inexhaustible, but the city has opted to depreciate this cost over 20 years (using the straight-line method).a. How is this work to be reported on the government-wide financial statements for the year ended December 31, 2017?b. How is this work to be reported in the fund financial statements for the year ended December 31, 2017?arrow_forwardOn January 1, 2017, the City of Graf pays $60,000 for a work of art to display in the local library. The city will take appropriate measures to protect and preserve the piece. However, if the work is ever sold, the money received will go into unrestricted funds. The work is viewed as inexhaustible, but the city has opted to depreciate this cost over 20 years (using the straight-line method). How is this work to be reported on the government-wide financial statements for the year ended December 31, 2017? How is this work to be reported in the fund financial statements for the year ended December 31, 2017?arrow_forwardA private not-for-profit entity receives two gifts. One is $80,000 and is restricted for paying salaries of teachers who help children learn to read. The other is $110,000, which is restricted for purchasing playground equipment. Both amounts are properly spent by the end of this year. Because the purchase of the playground equipment was made at the end of the year, the organization records no depreciation this period. It has elected to view the equipment as having a time restriction. On the statement of activities, what is reported for unrestricted net assets? An increase of $80,000 and a decrease of $80,000. An increase of $190,000 and a decrease of $190,000. An increase of $190,000 and a decrease of $80,000. An increase of $80,000 and no decrease.arrow_forward
- Maple Corporation owns several pieces of highly valued paintings that are on display in the corporation's headquarters. This year, it donated one of the paintings valued at $100,000 (adjusted basis of $25,000) to a local museum for the museum to display (Assume Maple Corporation had prior knowledge of the museum's intention to sell the painting after receiving it.) b. What would be Maple's deduction if the museum sold the painting one month after it received it from Maple? Charitable contribution deductionarrow_forwardOn November 1, the city of Reaganton sold a police vehicle for $10,000 cash that was originally purchased for $100,000. The vehicle had been depreciated at the government-wide level and accumulated depreciation at the date of sale was 92,000. Record this sale (1) from the perspective of the governmental activities at the government-wide level, and (2) from the perspective of the General Fund.arrow_forwardMawn Company bought land and built a warehouse during 2019. It improperly debited the following related costs to an account titled Land and Buildings: Land purchase $22,000 Demolition of old building 3,000 Legal fees for land acquisition 1,500 Avoidable interest on loan for construction 2,900 Building construction 53,000 Assessment by city for sewer connection—city is responsible for maintenance 1,200 Landscaping (expected to be permanent in nature) 3,500 Equipment purchased for excavation 18,800 Pro rata portion of fixed overhead incurred during construction of building 15,000 Insurance on building during construction 1,000 Profit on construction 12,000 Compensation for injury to construction worker (not covered by the insurance policy purchased by Mawn) 3,000 Modifications to building ordered by building inspectors (due to poor planning by Mawn) 7,500 Delinquent property taxes on land paid in 2019 (land was purchased during the year) 2,500…arrow_forward
- Maple Corp. owns several pieces of highly valued paintings that are on display in the corporation's headquarters. This year, it donated one of the paintings valued at $100,000 (adjusted basis of $25,000) to a local museum for the museum to display. b. What would be Maple's deduction if the museum sold the painting one month after it received it from Maple? Charitable contribution deductionarrow_forwardMawn Company bought land and built a warehouse during 2019. It improperly debited the following related costs to an account titled Land and Buildings: Land purchase $22,000 Demolition of old building 3,000 Legal fees for land acquisition 1,500 Avoidable interest on loan for construction 2,900 Building construction 53,000 Assessment by city for sewer connection—city is responsible for maintenance 1,200 Landscaping (expected to be permanent in nature) 3,500 Equipment purchased for excavation 18,800 Pro rata portion of fixed overhead incurred during construction of building 15,000 Insurance on building during construction 1,000 Profit on construction 12,000 Compensation for injury to construction worker (not covered by the insurance policy purchased by Mawn) 3,000 Modifications to building ordered by building inspectors (due to poor planning by Mawn) 7,500 Delinquent property taxes on land paid in 2019 (land was purchased during the year) 2,500…arrow_forwardThe City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. Assume that the city reports the work as a capital asset. Which of the following is true? Choose the correcta. Depreciation is not recorded because the city has no cost.b. Depreciation is not required if the asset is viewed as being inexhaustible.c. Depreciation must be recognized because the asset is capitalized.d. Because the property was received as a gift, recognition of depreciation is optional.arrow_forward
- The City of Sanderville donated land to Max Company. The fair value of the land was $100,000. The city purchased the land at a cost of $45,000. Under the recommendations outlined by the Financial Accounting Standards Board (FASB), the land should be recorded at its original cost. Select one: O True Falsearrow_forwardTarhata Company received a government grant of 2,000,000 related to a factory building purchased in January 2021 from an industrialist identified by the government. If the entity did not purchase the building, which was located in the slums of the city, it would have been repossessed by the government agency. The entity purchased the building for 12,000,000. The useful life of the building is 5 years with no residual value. On January 1, 2022, the entire amount of the government grant became repayable by reason of non compliance with conditions attached to the grant. Required: Prepare journal entries assuming the government grant is accounted for using: Deferred income approach Deduction from asset approacharrow_forwardLina Center for Performing Arts is a not-for-profit organization. The center began operations on January 1, 2021 with $135,000 of temporarily restricted assets. The amounts are restricted for the following: $75,000 is restricted for student outreach, $20,000 is restricted for performer education, and $45,000 is restricted for building improvements. During the fiscal year ending December 31, 2021 the following transactions occur. Prepare the entries for all events including depreciation and reclassifications. Please identify journal entries with the appropriate designation of UR, TR, and PR. Use restricted funds to the extent possible. 1.The center received a donation for an original Monet painting which will be held on display in the Lina Center for Performing Arts. The estimated value of the artwork is $1.5 million. Lina follows a policy of capitalization. 2.A term endowment of $150,000 expires. 3.Collected $5,000 in fees for upcoming performances. Half of these performances will…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Understanding U.S. Taxes; Author: Bechtel International Center/Stanford University;https://www.youtube.com/watch?v=QFrw0y08Oto;License: Standard Youtube License