ACC410 Ch 2 Fund Accounting and 3 Government Financial Reporting Solutions

ACC410 Ch 2 Fund Accounting and 3 Government Financial Reporting Solutions

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapters 2 and 3 solutions 2-3 1. Journal entries in general fund (in millions) (a) Cash $20.0 Proceeds from borrowing $20.0 To record the issuance of bonds (b) Expenditure for land $ 4.0 Cash $ 4.0 To record the purchase of land (c) Cash $ 1.0 Proceeds from sale of land $ 1.0 To record sale of land (d) Expenditure for repayment of bonds $ 2.0 Cash $ 2.0 To record repayment of bonds (e) Expenditure for legal claims $ 3.0 Cash $ 3.0 To record payment of judgment 2. Modified accrual statements Special District Balance Sheet Cash $12 Fund Balance $12 Special District Statement of Revenues, Expenditures and Other Changes in Fund Balances Revenues and other financing sources Bond proceeds $20 Proceeds from sales of land 1 Total revenues and other financing sources 21 Expenditures and other financing uses Repayment of bonds 2 Acquisition of land 4 Legal claims 3 Total expenditures and other financing sources 9 Excess of revenues and other financing sources over expenditures and other financing uses $12 3. The balance sheet fails to capture key long-term (capital) assets and long-term obligations. But, of course, it is not intended to do so. Instead, it is intended to indicate the current financial resources available to meet current obligations. 4. Similarly, the statement of revenues, expenditures and other changes in fund balances does not measure the cost of services (e.g., it recognizes borrowings as an increase in fund balance and the full cost of acquiring capital assets as a decrease). It is not designed to do so. Instead it is designed to report on flows of current financial resources — net assets that are likely of great interest to the district’s governing body, managers and constituents. 2-4 1. Journal entries (a) Cash $160,000 Contribution revenues $160,000 To record contribution revenue (general fund) Cash $ 40,000 Contribution revenues $ 40,000 To record contribution revenue (building fund ) (b) Operating expenditures $130,000 Cash $120,000 Accounts payable 10,000 To record operating expenditures (general fund) (c) Cash $ 3,000 Interest revenue $ 3,000 To record interest revenue (building fund) (d) Transfer-out to building fund $ 17,000 Cash $ 17,000 To record transfer-out to building fund (general fund) Cash $ 17,000 Transfer-in from general fund $ 17,000 To record transfer-in from general fund (building fund) (e) Expenditures for architectural services $ 12,000 Cash $ 12,000 To record fees paid to architect (building fund) 2. Financial Statements Society for Ethical Teachings Statement of Revenues, Expenditures, and Other Changes in Fund Balances General Building Fund Fund Revenues Contribution revenue $160,000 $ 40,000 Interest 3,000 Total revenues 160,000 43,000 Expenditures Operating expenditures 130,000 Architectural services 12,000 Excess of revenues over expenditures 30,000 31,000 Transfers from (to) other funds (17,000 ) 17,000 Increase in fund balances $ 13,000 $ 48,000 Society for Ethical Teachings Balance Sheet GeneralBuilding...
View Full Document

This note was uploaded on 01/04/2012 for the course ACC 410 taught by Professor Smith during the Fall '10 term at Strayer.

Page1 / 15

ACC410 Ch 2 Fund Accounting and 3 Government Financial Reporting Solutions

This preview shows document pages 1 - 5. Sign up to view the full document.

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