Accounting For Governmental & Nonprofit Entities
Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Chapter 7, Problem 17.12EP

The City of Tutland issued $10 million, 6 percent, 10-year bonds at 101 to finance refurbishment of its water utility fund equipment. The bond issuance is reported in the water utility enterprise fund statement of cash flows as

  1. a.      A cash flow from operating activities.
  2. b.      A cash flow from noncapital financing activities.
  3. c.       A cash flow from capital and related financing activities.
  4. d.      A cash flow from investing activities.
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Falmouth City owns and operates a mini-bus system which it accounts for in an enterprise fund.  Prepare journal entries to record the following transactions, which occurred in a recent year. a)    The mini-bus system issued $5 million of 8 percent revenue bonds at par and used the proceeds to acquire new mini-buses. b)    As required by the bond covenant, the system set aside 1 percent of the gross bond proceeds for repair contingencies. c)    The system accrued 6 months interest on the revenue bonds at year-end. d)    The system incurred $30,000 of repair costs and paid for them with cash set aside for repair contingencies
Prepare journal entries for all the funds AND IDENTIFY THEM and the General Capital Assets and General Long-Term Liabilities accounts affected by the following transactions The government paid $605,000 from the General Fund to the fund used to service its general government bonds.   The government issued bonds of $13,000,000 at par. The bonds are to be used to finance construction of a major public park.   The government paid $400,000 of principal and $300,000 of interest on general government bonds.   The government entered a capital lease for equipment with a capitalizable cost of $700,000. A $150,000 initial рауment was made   The govern ment pui chased new computer equipment for the police department at a cost of $43,000. please avoid handwritten solution thanks
The Pension Trust Fund maintained by the city of Marydell had the following transactions and events during its current fiscal year:1. Contributions of $960,000 were received from General Fund employees, and theGeneral Fund contributed its share of $160,000.2. The fund paid $800 for investment management fees.3. Investments held by the fund increased in value by $5,600.4. Depreciation on fund capital assets totaled $1,2805. Retirement benefits of $12,320 were paid to retirees.6. Interest of $4,000 and dividends of $2,240 were received frominvestments.Prepare journal entries to record the transactions and events above for the Pension Trust Fund.If an entry affects more than one debit or credit account, enter the accounts in order ofmagnitude (largest to smallest balances), debits first.   Account Debit Credit                           To record contributions received.                       To record payment of management fees.                       To record…

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Accounting For Governmental & Nonprofit Entities

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