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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Textbook Question
Chapter 7, Problem 28EP
Appendix—Solid Waste Enterprise Fund. (LO7-6) Brown County operates a solid waste landfill for the citizens of the county. The following events occurred during the county’s fiscal year ended September 30.
- 1. The county paid interest costs of $6,869,000; of this amount, $214,000 was required to be capitalized to construction work in progress. Amortization of bond premiums was $167,000.
- 2. The county is self-insured through an internal service fund for workers’ compensation, automotive, and general liability insurance. The Solid Waste Enterprise Fund participates in the county-run program, and the amount paid for the year was $1,069,000.
- 3. The county’s recorded value of investments as of September 30 was $129,638,000. Fair market value was determined to be $133,590,000.
- 4. The fund bills franchise haulers, and at September 30, the balance in Accounts Receivable was $4,687,000. The Allowance for Uncollectible Accounts showed a balance of $134,000, but an aging of accounts determined that the balance should be $179,000.
- 5. The county’s landfill has a total space of 54,000 cubic yards (cy). The county has projected that future closure and postclosure care costs will be $60,600,000. The county’s estimate of cubic yards consumed as of September 30 is 13,500 cy. The balance in the liability account for closure and postclosure costs as of September 30 of the previous year was $13,350,000. (Hint: The current liability account balance should be subtracted from the total proportion of landfill cubic yards used to arrive at the current year’s expense.)
Required
- a. Prepare general
journal entries to record the Solid Waste Disposal Fund’s activities shown above. - b. Based on the information provided above, does it appear that the fund managers are complying with GASB standards for recognition of closure and postclosure care costs? Explain.
- c. The county has set aside funds to meet its financial obligations related to closure and postclosure care costs in the amount of $12,670,000. Where would these funds be reported? Regulations require that solid waste disposal funds have current resources available to satisfy at least 90 percent of the estimated current liability. Does it appear that the Solid Waste Disposal Fund has met this requirement? Why or why not?
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Bilberry County voted to establish an internal service fund to account for printing and copying for all its departments and agencies. The county engaged in the following activities related to the new fund on 1/1/2019.
a) The county commission voted to transfer $300,000 from the general fund to the internal service fund to establish the new fund.
b) Entered into a capital lease for equipment to be used in printing activities. The total present value of the lease obligation is $600,000.
c) Issued $2 million in general obligation bonds at 101. The bonds were issued to acquire additional equipment and are to be serviced from the internal service fund.
d) Purchased equipment for $1,950,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $150,000.
e) Billed the general fund for copying and printing charges, $70,000.
f) Paid salaries to printing employees, $50,000.
a. Total Fixed Asset reported on the financial statement as of 1/1/2019 is?
b. Total…
Bilberry County voted to establish an internal service fund to account for printing and copying for all its departments and agencies. The county engaged in the following activities related to the new fund on 1/1/2019.
a) The county commission voted to transfer $300,000 from the general fund to the internal service fund to establish the new fund.
b) Entered into a capital lease for equipment to be used in printing activities. The total present value of the lease obligation is $600,000.
c) Issued $2 million in general obligation bonds at 101. The bonds were issued to acquire additional equipment and are to be serviced from the internal service fund.
d) Purchased equipment for $1,950,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $150,000.
e) Billed the general fund for copying and printing charges, $70,000.
f) Paid salaries to printing employees, $50,000.
Total liability reported on the Financial statement as of 1/1/2019 is?
answer please.
Palto County elects not to purchase commercial insurance. Instead, it sets aside resources for potential claims in an internal service ‘‘self-insurance’’ fund. During the year, the fund recognized $4 million for claims filed during the year. Of this amount, it paid $2.3 million. Based on the calculations of an independent actuary, the insurance fund billed and collected $5.0 million in premiums from the other county departments insured by the fund. Of this amount, $3.2 million was billed to the funds accounted for in the general fund and $1.8 million to the county utility fund. The total charge for premiums was based on historical experience and included a reasonable provision for future catastrophe losses.1. Prepare the journal entries in the internal service fund to record the claims recognized and paid and the premiums billed and collected. 2. Prepare the journal entries in the other funds affected by the above. 3. If the county accounted for its self-insurance within its general…
Chapter 7 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 7 - Prob. 1QCh. 7 - Explain the reporting requirements for internal...Ch. 7 - A member of the city commission insists that the...Ch. 7 - Prob. 4QCh. 7 - What is the purpose of the Restricted Assets...Ch. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - When do GASB standards require interfund...Ch. 7 - Prob. 9QCh. 7 - What is meant by segment information for...
Ch. 7 - Prob. 11QCh. 7 - Internal Service Fund Reporting. (LO7-2) Financial...Ch. 7 - Proprietary Fund Operating Statement. (LO7-1)...Ch. 7 - Enterprise Fund Golf Course Management. (LO7-1)...Ch. 7 - Prob. 17.1EPCh. 7 - Which of the following would most likely be...Ch. 7 - Under GASB standards, the City of Parkview is...Ch. 7 - Prob. 17.4EPCh. 7 - Which of the following events would generally be...Ch. 7 - Proprietary funds a. Are permitted to integrate...Ch. 7 - Prob. 17.7EPCh. 7 - Prob. 17.8EPCh. 7 - Prob. 17.9EPCh. 7 - Prob. 17.10EPCh. 7 - The City of Tutland issued 10 million, 6 percent,...Ch. 7 - The City of Tutland issued 10 million, 6 percent,...Ch. 7 - Prob. 18EPCh. 7 - Prob. 19EPCh. 7 - Central Garage Internal Service Fund. (LO7-2) The...Ch. 7 - Internal Service Fund Statement of Cash Flows....Ch. 7 - Tribute Aquatic Center Enterprise Fund. (LO7-5)...Ch. 7 - Net Position Classifications. (LO7-5) During the...Ch. 7 - Central Station Enterprise Fund. (LO7-5) The Town...Ch. 7 - Enterprise Fund Journal Entries and Financial...Ch. 7 - Net Position Classifications. (LO7-5) The Village...Ch. 7 - Enterprise Fund Statement of Cash Flows. (LO7-5)...Ch. 7 - AppendixSolid Waste Enterprise Fund. (LO7-6) Brown...
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