SolutionsChap006

SolutionsChap006 - CHAPTER 6: ACCOUNTING FOR GENERAL...

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Unformatted text preview: CHAPTER 6: ACCOUNTING FOR GENERAL LONG-TERM LIABILITIES AND DEBT SERVICE OUTLINE Number Topic Type/Task Status (re: 14/e) Questions: 6-1 Defining general long-term liabilities; financial reporting Define and explain Same 6-2 Disclosures about long-term liabilities Explain Same 6-3 General obligation bonds Explain New 6-4 G.O. bonds and enterprise funds Explain Same 6-5 Debt limit and debt margin Calculate New 6-6 Overlapping debt Explain New 6-7 Number of debt service funds Explain Same 6-8 Distinguish serial bond characteristics from term bond characteristics; debt service fund accounting differences for the two types Explain Same 6-9 Reporting investments Describe New 6-10 Advance refunding of bonds Explain New Cases: 6-1 Policy Issues: Who should pay for neighborhood improvements? Analyze and write Same 6-2 Financial statement impact of incurring general long-term debt on behalf of other governments Analyze and write Same 6-3 The case of the vanishing debt Analyze and write Same 6-4 Analysis of general obligation debt burden Calculate and assess Revised Exercises/Problems: 6-1 Examine the CAFR Examine Same 6-2 Various Multiple Choice 6-2 revised 6-3 Long-term liability transactions Journal Entries 6-3 revised 6-4 Budgetary transactions Journal Entries New 6-5 Direct and overlapping debt Financial Schedule 6-4 6-6 Trial balance Analysis and Financial Statements New 6-7 Capital leases Journal Entries and FS 6-6 6-8 Serial bond debt service fund transactions and statements JEs and FS New 6-9 Term bond debt service fund transactions JEs 6-10 revised 6-10 Comprehensive capital assets/serial bond problem JEs 6-9 6-1 CHAPTER 6: ACCOUNTING FOR GENERAL LONG-TERM LIABILITIES AND DEBT SERVICE Answers to Questions 6-1. General long-term liabilities arise from activities of the General Fund or some other governmental fund. These liabilities are distinguished from fund long-term liabilities that are incurred by a proprietary or fiduciary fund and for which debt service will be paid from that fund. General long-term liabilities are reported only in the Governmental Activities column of the government-wide financial statements and not in any fund. 6-2. As shown in Illustration 6-1 for the City and County of Denver, note disclosures about long-term debt (such as bonds, notes, and capital leases) and operating long-term liabilities (such as claims and judgments, compensated absences, and other accrued liabilities) should show the beginning balance of each major class of long-term liability and additions to, deletions from, and the ending balance of each major class. These disclosures should present separate sections for governmental activities and business-type activities. Presenting long-term liability disclosures for discretely presented component units, as the City and County of Denver has done, is discretionary and is a matter of professional judgment....
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SolutionsChap006 - CHAPTER 6: ACCOUNTING FOR GENERAL...

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