Transactions for fund statements-government-wide statements

Assignment Help Financial Accounting
Reference no: EM13862490

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.


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?

Reference no: EM13862490


Write a Review


Financial Accounting Questions & Answers

  Determine ways in which knowing ones investment horizon

Determine two ways in which knowing one's investment horizon can help with one's investment strategy. Provide two examples to support your response.

  Draft a one-page letter to gerald brauer

Prepare a statement of cash flows for 2013, using the indirect method.  Assume that current assets (excluding cash) and current liabilities have remained the same on December 31, 2013 - Draft a one-page letter to Gerald Brauer, president of Ellwood..

  What risk factors should bob be most concerned

Complete a financial analysis of Longs Jewelers including a cash flow statement and ratio analysis and discuss your findings.

  Advantage of using computer-assisted audit techniques

A primary advantage of using computer-assisted audit techniques (CAATs) packages to audit the financial statements of a client that uses computerized information systems is that the auditor may

  Cost recovery or tax depreciation is not accurate

Which of the following statements about cost recovery (tax depreciation) is not accurate?

  Evaluate the plan to skip the dividend

Metro Bus Company had $400,000 of revenue and $401,000 of expense (including depreciation) for the current year resulting in a $1,000 net loss. All revenues were received in cash. All expenses were paid in cash except for depreciation of $181,000. Ev..

  What is consolidated net income for sedona and phoenix

What is consolidated net income for Sedona and Phoenix for 2013

  Difference between ending inventory valuation and cost of

difference between ending inventory valuation and cost of goods sold.cost flow assumptions - fifo and lifo using a

  Compute the net increase or decrease in net income

Compute the net increase or decrease in net income for the month from the recognition of the adjustments

  The inventory valuation method that identifies invoice cost

The inventory valuation method that identifies the invoice cost of each item in ending inventory to determine the cost assigned to that inventory is the:

  Current portion of mortgage payable

The monthly payment on a 1,000,000 15 yr. mortgage at 6% is 8,438.57 per month. How much of that 1,000,000 on day 1 is deemed to be "current portion of mortgage payable"?

  Calculation of material price and quantity variancesdiekow

calculation of material price and quantity variances.diekow productions manufacturing and sold 1000 production at 11000

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd