Chapter 20 Selected Problems

Chapter 20 Selected Problems - SOLUTIONS TO EXERCISES...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
SOLUTIONS TO EXERCISES Solution E20-1 Solution E20-2 Solution E20-3 1 b 1 d 1 c 2 c 2 d 2 d 3 d 3 d 3 c 4 c 4 c 4 b 5 d 5 a 5 c Solution E20-4 Solution E20-5 [AICPA adapted] 1 b 1 d 2 a 2 d 3 a 3 b 4 a 4 b 5 c 5 a 6 c Solution E20-6 City of Laramee Tax Collection Agency Fund Statement of Fiduciary Net Assets Tax Collection Agency Fund at December 31, 2008 Assets Taxes receivable $50,000 Total assets $50,000 Liabilities Liability to Laramee $15,000 Liability to Bloomer County 10,000 Liability to Bloomer School District 25,000 Total liabilities $50,000 Total Net Assets 0 Schedule of Taxes Receivable Taxing Units Amounts Certified for Collection Collections Balance at Year End City of Laramee $ 60,000 $ 45,000 $15,000 Bloomer County 40,000 30,000 10,000 Bloomer School District 100,000 75,000 25,000 $200,000 $150,000 $50,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
NOTE: This solution assumes that the collection fee is recognized when cash is collected. Solution E20-7 1 Cash 3,000,000 Deferred operating grant revenue 3,000,000 To record receipt of grant. Deferred grant revenue is reported as a liability in the balance sheet. Operating grant revenues are reported as nonoperating revenues in the period qualifying costs are incurred. 2 Expenses — Program A 1,200,000 Vouchers payable (or Cash) 1,200,000 To record expenses incurred for the program financed by the grant. Deferred operating grant revenues 1,200,000 Revenues — operating grant 1,200,000 To record revenues earned on the grant. Nonoperating revenues of $1,200,000 should be reported in the enterprise fund’s statement of revenues, expenses, and changes in retained earnings (fund equity). 3 Cash 7,000,000 Deferred capital grant 7,000,000 To record receipt of capital grant. Deferred capital grants are reported as a liability in the balance sheet. When qualifying costs are incurred, the deferred capital grant liability is reduced and contributed capital from intergovernmental grants, not revenues, is recognized. 4
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 9

Chapter 20 Selected Problems - SOLUTIONS TO EXERCISES...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online