ACCT. FOR GOV.&NONPROF. ENTITIES>CUSTOM
18th Edition
ISBN: 9781307515596
Author: RECK
Publisher: MCG/CREATE
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Chapter 9, Problem 12C
To determine
Identify whether the primary government has included the organization as a component unit.
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Write a detailed report covering the following topics:
1. ACCOUNTING FOR COLLEGES AND UNIVERSITIES
• What Unique Issues do Colleges and Universities Face?
• What are different revenues and expenses?
• Accounting for revenues and expenses- Give examples
• Treatment of grants and donations
2. ACCOUNTING FOR HEALTH CARE PROVIDERS/HOSPITALS
• What Unique Issues do Health Care Providers Face?
• What are the Key Differences Between Private Not-For-Profit and
Government Health Care Providers?
• What Are the Basic Financial Statements?
• What are the Key Revenues and Expenses?
• How are the key revenues and expenses recognized?
An employment agency for individuals with disabilities works closely with the City of Hanover. The employment agency is legally separate from the city but still depends on it for financial support, which leads to a potential financial burden for the city. How should Hanover report the employment agency in its comprehensive annual financial report? Choose the correct.a. Not at all because the agency is legally separate.b. As a part of the general fund.c. As a component unit.d. As a related organization.
A city starts a public library that has separate incorporation and gets some of its money for operations from the state and some from private donations. Indicate whether each of the following independent statements is true or false and briefly explain each answer.
If the city appoints 9 of the 10 directors, it must report the library as a component unit.
If the library is a component unit and its financial results are shown as part of the governmental activities of the city, it is known as a blended component unit.
If the library appoints its own board but the city must approve its budget, the library must be reported as a blended component unit.
Chapter 9 Solutions
ACCT. FOR GOV.&NONPROF. ENTITIES>CUSTOM
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - What is a component unit?Ch. 9 - Explain the difference between a blended and a...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Give examples of items (transactions) that would...Ch. 9 - Prob. 10Q
Ch. 9 - Prob. 11QCh. 9 - Prob. 12CCh. 9 - The MDA for the 2016 City and County of Denver...Ch. 9 - Prob. 14CCh. 9 - Prob. 17.1EPCh. 9 - Prob. 17.2EPCh. 9 - Prob. 17.3EPCh. 9 - Interim government financial reports a. Are not...Ch. 9 - The comprehensive annual financial report (CAFR)...Ch. 9 - Prob. 17.6EPCh. 9 - The city council of Lake Jefferson wants to...Ch. 9 - Prob. 17.8EPCh. 9 - Prob. 17.9EPCh. 9 - Prob. 17.10EPCh. 9 - A positive unassigned fund balance can be found in...Ch. 9 - A city established a special revenue fund for gas...Ch. 9 - The county commission passed into law through an...Ch. 9 - Prob. 17.14EPCh. 9 - Prob. 17.15EPCh. 9 - Prob. 18EPCh. 9 - Prob. 19EPCh. 9 - The City of Lynnwood was recently incorporated and...Ch. 9 - Prob. 21EPCh. 9 - Prob. 22EPCh. 9 - Prob. 23EPCh. 9 - Prob. 24EPCh. 9 - You have recently started working as the...Ch. 9 - Prob. 26EPCh. 9 - Prob. 27EP
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- For each of the following events or transactions, prepare the necessacry journal entries and identify the fund or funds that will be affected. 1. A governmental unit collects fees totaling $4,500 at the municipal pool. The fees are charged to recover costs of pool operation and maintenance 2. A county government that serves as a tax collection agency for all towns and cities located within the county collects county sales taxes totaling $125,000 for the month. 3. A $1,000,000 bond offering was issued, with a premium of $50,000, to subsidize the construction of a city visitor center. 4. A town receives a donation of $50,000 in bonds. The bonds should be held indefinitely, but bond income is to be donated to the local zoo. The zoo is associated with the town. 5. A central printing shop is established with a $150,000 nonreciprocal transfer from the general fund. 6. A $1,000,000 revenue bond offering was issued at par by a fund that provides water and sewer services to…arrow_forwardState and local governments and not-for-profit organizations that receive grants or contracts from the federal government should charge costs of these grants or contracts in conformity with: a) Cost Accounting Standards Board standards. b) Office of Management and Budget circulars. c) Financial Accounting Standards Board standards. d) Governmental Accounting Standards Board standards.arrow_forwardWhich of the following is true regarding financial reporting under GASB Statement No. 34?a. A comparison of budget and actual revenues and expenditures for the general fund is required as part of the basic financial statements.b. Infrastructure must be recorded and depreciated as part of the statement of activities in the basic financial statements.c. Public colleges and universities are to report in exactly the same manner as private colleges and universities.d. Special purpose governments that have only business-type activities are permitted to report only the financial statements required for enterprise funds.arrow_forward
- The City of Larissa recently opened a solid waste landfill to serve the area's citizens and businesses. The city's accountant has gone to city officials for guidance as to whether to record the landfill within the general fund or as a separate enterprise fund. Officials have asked for guidance on how to make that decision and how the answer will impact the government's financial reporting. Required Write a memo to the government officials describing the factors that should influence the decision as to the fund in which to report the landfill. Describe the impact that this decision will have on the city's future comprehensive annual financial reports.arrow_forwardBalsam City's library board is appointed by the city council, which has agreed to subsidize the operating costs of the library at a material amount to be determined each year. In addition, the city is paying debt service on general obligation bonds issued to construct the library. Based on generally accepted accounting principles (GAAP) criteria for defining the reporting entity: Multiple Choice A. The library is a special purpose government. B. The library is a joint venture. C. The library is a component unit. D. The library is a jointly governed organization.arrow_forwardA government health care district incorporates its budget in its accounting system and encumbers all purchase orders and contracts. Prior to the start of the year, the governing board adopted a budget in which agency revenues were estimated at $5,600 and expenditures of $5,550 were appropriated. During the year, the following transactions incurred: the government health care district collected $5,500 in fees, grants, taxes, and other revenues It ordered goods and services for $3,000. it received and paid for $2,800 of goods and services that had been previously encumbered. It expects to receive the remaining $200 in the following year. It incurred $2500 in other expenditures for goods and services that had not been encumbered. What is total fund balance at year end? $500 $300 $200 None of abovearrow_forward
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