How the transactions would be reflected in gws

Reference no: EM131765440

Question: Option #1: Transactions for Fund Statements and Government-wide Statements Preston Village engaged in the following transactions:

- It issued $20 million in bonds to purchase a new municipal office building. The proceeds were recorded in a capital projects fund.

- It acquired the building for $20 million.

- It recognized, as appropriate, $300,000 of depreciation on municipal vehicles.

- It transferred $2,060,000 from the general fund to a debt service fund.

- It paid $60,000 in interest on long-term debt and repaid $2 million of principal on the same long-term debt.

- It sold for $5 million village land that had been acquired for $4 million. The proceeds were recorded in the general fund.

Instructions: Answer the following question based on the transactions outlined above.

1: For each of the transactions, prepare journal entries to record them in appropriate governmental funds (which are accounted for on a modified accrual basis).

2: Prepare journal entries to reflect how the transactions would be reflected in government-wide statements (which are prepared on a full accrual basis).

3: How can governments justify preparing two sets of financial statements, each on a different basis?

Requirements: Submit your responses to the following questions in a 1-2 page document in MS Word. Label each question clearly. Please include computations in a table.

Reference no: EM131765440

Questions Cloud

Role of the human resources manager : Discuss the role of technology in human resources management. How has technology changed the role of the human resources manager?

Discuss why gaap does not allow inventory : Explain the definition of net realizable value and discuss why GAAP does not allow inventory to be valued above net realizable value

The subject of employee health and safety is a broad one : The subject of employee health and safety is a broad one. Chose only one element of employee health and safety and good deep into the subject.

Develop a fictionalized dialogue of two people in a relation : Develop a fictionalized dialogue of two people in a relationship who are exhibiting relationship, cognitive, health, or other problems.

How the transactions would be reflected in gws : Prepare journal entries to reflect how the transactions would be reflected in government-wide statements (which are prepared on a full accrual basis).

What is the secret to success in entrepreneurship : What is the secret to success in entrepreneurship? (2) What are the principles that can help you understand the role of failure in business?

Determine daniels income tax liability : Daniel is a calendar-year taxpayer whose wife died in August of 2009. Determine Daniel's income tax liability for 2009 before any allowable credits

People in an insurance office : You manage a staff of 15 people in an insurance office. You have noticed that several of the employees are taking longer and longer coffee and cigarette breaks.

Essential project management skills : What skills and knowledge do you develop in essential project management skills. This should focus on skills, knowledge and resources required.

User Account

All Pages