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Chapter: 2 -Problem: 6 >> The following relate to the town of Coupland (dollar amounts in thousands):Depreciation expense to be recognized in internal service fundsa. $0 b. $140 c. $900 d. $1,260 e . $1,040 f. $1,400 g. $2,200 h. $4,000 i. $6,300 j. $8,000 k. $8,500 l. $10,400 Transcribed Image Text: Historical cost of equip
Answer Preview: …

, Chapter: 12 -Problem: 1 >> The objective of this exercise is to get you familiar with the audited financial statements and IRS Form 990 of a Nonprofit Entity, the American Cancer Society (www.cancer.org, click on "About Us," and click on "Financials and Governance") and obtain the audited financial statements for the fiscal year ended December 31, 2019 and Form 990 for 2019. Form 990 can also be obtained from www.Guidestar.
Answer Preview: 1. Patient support, research, prevention, and detection/treatment. These are found in Note 1 of the …

, Chapter: 13 -Problem: 6 >> Scholarships for which no services are required should be recorded as _________ and scholarships for which services are required should be recorded as _____ _ a. Revenue deductions; expenses b. Expenses; revenue deductions c. Expenses; expenses d. Revenue deductions; revenue deductions
Answer Preview: a. Reve…

, Chapter: 10 -Problem: 8 >> The GASE requires that the difference between actual and expected earnings on plan investments be a. Charged immediately to a revenue or expense account as appropriate. b. Charged immediately to an asset or liability account as appropriate . c. Amortized over a period of five years. d. Amortized over the average remaining service lives of plan participants.
Answer Preview: c. Amorti…

, Chapter: 14 -Problem: 8 >> Based on Saint Michael Hospital's established billing rate structure, the hospital would have earned patient service revenue of $8,500,000 for the year. However, Saint Michael does not expect to collect this amount because of charity care provided in the amount of $1,000,000 and contractual allowances to third-party payers of $750,000. How much should Saint Michael record as patient service gross
Answer Preview: d. …

, Chapter: 13 -Problem: 1 >> In June 20X0, a public university bills and collects $30 million in tuition for the summer semester that runs from June 1 through July 15. In addition, in May and June it bills $200 million for the fall semester that runs from September 1 through December 15. Of this amount it collects only $80 million (expecting to collect the balance prior to September 1). In its statement of revenues and expens
Answer Preview: a. …

, Chapter: 13 -Problem: 6 >> In January 20X0, Kirkland University receives a pledge of $200,000 to be used exclusively to support research in a specialized area of communication disorders. The university's fiscal year ends on July 31. In December 20Xl (the following fiscal year), Kirkland receives the pledged contribution of $200,000 and spends $150,000 on qualifying research. 1. Prepare all required journal entries to reflec
Answer Preview: 1. a. Private university Upon receiving the pledge To record the receipt of a restricted contributio…

, Chapter: 12 -Problem: 1 >> The Lung Association received a contribution of marketable securities that were to be placed in a permanent endowment fund. Neither donor stipulations nor applicable state law requires that capital gains or increases in value be added to the endowment principal. The income from the securities was to be restricted to research in pulmonary diseases. The following schedule indicates the value of the
Answer Preview: 1. Entry to record unrealized gains (in thousands, in a fund with donor restrictions) 2. Entries to …

, Chapter: 15 -Problem: 5 >> Which of the following is least likely to impair the independence of a county auditor? a. He is appointed by the county manager and reports to the manager b. His responsibilities include preparing the county's ACFR c. He is elected by the citizenry d. He receives an annual bonus only in years in which the county has a surplus, not a deficit
Answer Preview: c. He i…

, Chapter: 15 -Problem: 9 >> The GAO reporting standards differ from those of the AICPA in that the GAO standards require the auditors to explicitly comment on their testing of a. Financial transactions b. Compliance c. Efficiency and effectiveness d. Government-wide statements
Answer Preview: b. …

, Chapter: 15 -Problem: 9 >> What types of matters do "specific" requirements address?
Answer Preview: Specific compliance requirements relate to matters such as: The individuals o…

, Chapter: 10 -Problem: 6 >> The following data were drawn from the required supplementary information section of the Modian School District's annual report (all dollar amounts in thousands).1. What is the a mount that the district should report as its net OPEB obligation in its year-end 20Xl government-wide financial statements? 2. Based on t he data provided, can yo u tell the amount that the district should report as an ex
Answer Preview: 1. On its government-wide financial statements, the district would report …

, Chapter: 8 -Problem: 4 >> To encourage a private health care company to construct a nursing home, a city agrees to issue tax exempt bonds for the benefit of the company. The bonds will fund the construction of the facility. The city will hold title to the home for a period of 30 years, during which the city will lease the home to the company. The annual lease payments will be exactly equal to the required debt service on t
Answer Preview: Yes, assuming that there is no evidence that it will …

, Chapter: 15 -Problem: 8 >> Per the GAO standards, an auditor's report a. Must disclose instances of material inefficiencies b. Can exclude from versions that will be made public information that would be harmful to national security c. Must be retained by the auditor for a period no less than 10 years d. Must explicitly indicate that the individual auditors on the engagement have satisfied the standards' CPE requirements
Answer Preview: b. Can exclude from ve…

, Chapter: 16 -Problem: 6 >> Per the FASAB, a federal entity should be considered a reporting entity and thereby must issue annual reports if it a. Is listed in the OMB 's Catalog of Federal Agencies b. Has been designated as a reporting entity by Congress c. Is controlled by the federal government with risk of loss or expectation of benefits d. Meets 0MB minimum revenue requirements
Answer Preview: c. Is controlled b…

, Chapter: 8 -Problem: 1 >> The East Eanes School District engaged in or was affected by the following events and transactions during its fiscal year ending June 30, 20Xl.1. Teachers and other personnel earned $350,000 in vacations and other compensated absences that they did not take but for which they expect to be paid in the future. 2. The district settled a suit brought by a student, agreeing to pay $3 million by Decembe
Answer Preview: a. General or other governmental fund b. Government-wide statements No entry necessa…

, Chapter: 5 -Problem: 6 >> Assume the same facts as in the previous question. The amount that the city should add to the liability account in the government-wide statement of net position as of year-end 20Xl is a. $0 b. $2.8 million c. $3.4 million d. $3.6 million
Answer Preview: c. …

, Chapter: 10 -Problem: 1 >> A wealthy alumna donates $500,000 in marketable securities to her alma mater to establish a scholarship fund . Per the trust agreement, only the interest and dividends (including any gains in fair value) from the securities can be distributed to scholarship recipients. In addition, she stipulates that the recipients must be graduates of her own high school and members of its honor society and are
Answer Preview: 1. The donation (an endowment) would be accounted for in a private purpose tru…

, Chapter: 4 -Problem: 1 >> The board of trustees of an independent school district is contemplating several policy changes and other measures, all of which it intends to implement within the fiscal year that ends August 31, 20Xl. It requests your advice on how the changes would affect the reported general fund revenues. For each of the proposals, indicate the impact on revenues (or accounts comparable to revenues, such as p
Answer Preview: 1. Property taxes Fund statements The $2 million in property taxes would no longer be available for expenditure in 20X1 since they would be received m…

, Chapter: 14 -Problem: 6 >> The data below pertaining to two not-for-profit hospices were taken from GuideStar, an online database (www.guidestar. org) that provides information about not-for-profit organizations. Names and dates have been changed. The forms 990 that are included on the website indicate that Pleasant Valley and Ancient Falls had fund-raising expenses of $38,327 and $11,075, respectively. Because the data wer
Answer Preview: 1. Quick ratio: (Cash + Accounts Receivable + Pledges and Grants Receivable)/Accounts P…

, Chapter: 7 -Problem: 4 >> A government acquires as an investment a 30-year U.S. Treasury bond having a face value of $10,000. At the end of year 20, with 10 years remaining until maturity, the bond had a fair value of $10,200. Taking into account the discount at which the government initially purchased the bond, its amortized cost was $9,760. Assuming that it held the bond in a governmental fund, the government should repo
Answer Preview: d. …

, Chapter: 10 -Problem: 1 >> For each of the following indicate the type of fiduciary fund in which it is most likely the fiduciary activity should be accounted for and reported. 1. Per a trust agreement a state maintains an investment pool in which governments within the state can temporarily invest the proceeds of tax-exempt bonds that they have issued. The state will invest only in securities that would not violate IRS arb
Answer Preview: 1. Investment trust fund 2. Custodial fund 3. …

, Chapter: 4 -Problem: 1 >> A city levies property taxes of $4 billion in June 20Xl for its fiscal year beginning July 1, 20Xl. The taxes are due by January 31, 20X2. The following (in millions) indicates actual and anticipated cash collections relating to the levy:June 20Xl................................................................$100 July 20Xl through June 20X2.............................$3,600 July 20X2 through Aug
Answer Preview: 1. a. Under the modified accrual basis, the city would recognize the following amount as revenue for the fiscal year ending June 30, 20X2: The debit t…

, Chapter: 14 -Problem: 9 >> The BSK Health-Care foundation donated $900,000 as an endowment to be held in perpetuity to a senior citizens health and welfare organization during the year. The foundation stipulated that the income and investment appreciation be used to maintain its preventive care center for the elderly. The following year, the endowment principal had an investment appreciation of $60,000 and investment income
Answer Preview: a.…

, Chapter: 4 -Problem: 1 >> A city recently proposed the following "one-shot" measures to help balance its 20Xl general fund budget (the only budget that is required by law to be balanced). For each of the measures, indicate how it would affect revenues (or their equivalent, such as gains) on its 20Xl budget as well as its fund and government-wide December 31, 20Xl, financial statements. That is, indicate the amount, if any
Answer Preview: 1. Budget Increase revenues by $1,030,000 Fund statements No impact Government-wide statements No impact In the budget, revenues would increase by the full amount of cash received. In both the fund an…

, Chapter: 14 -Problem: 1 >> Please go to www.Guidestar.org, and download the Form 990 of three health-care organizations for 2018. 1. Mental Health America of Greater Houston 2. Southern Illinois Hospital Services 3. Ronald McDonald House Charities of Southern California Based on the data on Form 990, answer the following questions.1. What is the primary National Taxonomy of Exempt Entities (NTEE) category classification for
Answer Preview: 1. The NTEE (National Taxonomy of Exempt Entities) category. The NTEEs do differ from each other, pr…

, Chapter: 15 -Problem: 7 >> The GAO's Green Book deals with a. Environmental issues b. Federal investment policies c. Internal controls d. Waste, fraud, and abuse
Answer Preview: c. I…

, Chapter: 14 -Problem: 5 >> JMH (a not-for-profit) Rehabilitation Center engaged in the following transactions during its most recent fiscal year: 1. Michael Vincent donated $625,000 to the hospital to help pay for the purchase of new physical rehabilitation equipment. 2. Albert Olsen donated $250,000 to the center, stipulating that the resources be used only for the training of rehab care nurses. The center plans to conduct
Answer Preview: 1. 2. 3. Cash Support with donor restrictions contributions To record a contribution (in a fund …

, Chapter: 8 -Problem: 1 >> The Alpine school district engaged in the following transactions in its fiscal year ending August 31, 20Xl. By law, the district is required to establish a capital projects fund to account for school construction projects and a debt service fund to account for resources legally restricted to the payment of long-term principal and related interest. • On March 1, it issued $40 million in general obl
Answer Preview: 1. d $800,000 2. e $817,419 3…

, Chapter: 9 -Problem: 9 >> A municipality expects to use a landfill evenly throughout the 25 years from January 1, 2X20, to December 31, 2X44. Upon closing the landfill, it estimates that it will incur closing costs of $300,000. Thereafter, it anticipates it will have to monitor the site yearly for the following 30 years at an annual cost of $10,000.The government intends to pay for the closure a nd monitoring costs evenly
Answer Preview: 1. Amount needed in trust fund in 2X44 for monitoring costs: $10,000 x PV of an annuity of $1 for 30 …

, Chapter: 9 -Problem: 10 >> A city enters into a public-private partnership with a private corporation. It transfers its tolled bridge to the corporation in exchange for an upfront payment of $50 million cash. The corporation will maintain the bridge and will have the right to all tolls for the next 50 years, after which time the bridge will revert back to the city. The city, however, will retain the right to approve any cha
Answer Preview: b. Recognize a deferred infl…

, Chapter: 12 -Problem: 12 >> What measures might be of more value to donors than the fund-raising ratio?
Answer Preview: The fundraising ratio indicates the proportion of re…

, Chapter: 2 -Problem: 3 >> The following relate to the town of Coupland (dollar amounts in thousands):Bonds payable to be recognized in the general funda. $0 b. $140 c. $900 d. $1,260 e . $1,040 f. $1,400 g. $2,200 h. $4,000 i. $6,300 j. $8,000 k. $8,500 l. $10,400 Transcribed Image Text: Historical cost of equipment held in
Answer Preview: …

, Chapter: 12 -Problem: 6 >> The footnote in the financial statements of The Welfare Foundation contain the following note titled " Promises to Give": Unconditional promises to give were as follows at December 31:The discount rates used on long-term promises to give were 3 percent in 20Xl and 20X0. 1. Suppose that the foundation were to prepare a statement of financial position in columnar form, one column for net assets with
Answer Preview: 1. The promises to give would be reported as temporarily restricted net assets. They are subject to …

, Chapter: 13 -Problem: 2 >> A not-for-profit university operates its college bookstore as an auxiliary enterprise. During the year the store has revenues of $20 million and expenses of $18 million. In its statement of activities, the university should report a. Operating revenues of $2 million. b. Operating revenues of $20 million. c. Nonoperating revenues of $2 million. d. Nonoperating revenues of $20 million.
Answer Preview: b. Opera…

, Chapter: 15 -Problem: 10 >> Auditors have completed a draft of their report on a performance audit, which in several respects is critical of the program under review. The auditors should a. Refrain from discussing the findings with management until the final report is issued and made public b. Notify the federal agency that funded the program of the audit's findingsc. Allow responsible officials to review the report, but onl
Answer Preview: d. Obtain and includ…

, Chapter: 13 -Problem: 5 >> Other factors held constant, which of the following colleges is likely to present the least risk that it will default on its bonds? a. One that admits 98 percent of applicants b. One that draws the majority of its students from overseas c. One that prepares its students mainly for careers as automotive engineers d. One that draws its student body almost exclusively from the top 5 percent of high s
Answer Preview: d. One that draws its stude…

, Chapter: 2 -Problem: 4 >> The following relate to the town of Coupland (dollar amounts in thousands):Bonds payable to be recognized in enterprise fundsa. $0 b. $140 c. $900 d. $1,260 e . $1,040 f. $1,400 g. $2,200 h. $4,000 i. $6,300 j. $8,000 k. $8,500 l. $10,400 Transcribed Image Text: Historical cost of equipment held in
Answer Preview: $…

, Chapter: 10 -Problem: 5 >> The city maintains a $1-million endowment trust to provide financial assistance to needy retired employees and their families. In its government-wide statements, the $1 million would be reported as an asset in the column for a. Governmental activities. b. Business-type activities. c. Totals, but not in the column for either governmental or business-type activities. d. None of the above.
Answer Preview: d. No…

, Chapter: 14 -Problem: 1 >> A not-for-profit hospital signs a contract with an insurance company in which the company agrees to pay it $6 million in capitation fees for the year July 1, 20X0, through June 30, 20Xl. Between July 1, 20X0, and December 31, 20Xl, the hospital provides services that, at its standard rates, would bill at $3.4 million. Between January 1, 20X0, and June 30, 20Xl, it provides services that it would b
Answer Preview: b. …

, Chapter: 5 -Problem: 1 >> All the amounts shown relate only to supplies. All purchases during the year were paid in cash.Assume that the city uses the consumption method to account for supplies. a. Reconstruct all journal entries relating to supplies that were made in 20Xl. b. Make any additional entries that would be required at year-end 20Xl to close the accounts.
Answer Preview: Under the consumption basis, the expenditures would represent the amount of supplies consumed. By an…

, Chapter: 8 -Problem: 7 >> On December 1, 20Xl, a city issued $20 million in BANs and $6 million in RANs. By April 15, 20X2, the date the city issued its financial statements for the fiscal year ending December 31, 20Xl, the city had neither converted the BANs into long-term bonds nor entered into a refinancing agreement to do so. However, the city repaid the RANs on February 28, 20X2. The amount the city should report as a
Answer Preview: d. …

, Chapter: 1 -Problem: 6 >> The number of governmental units in the United States is approximately a. 900 b. 9,000 c. 90,000 d. 900,000
Answer Preview: c.…

, Chapter: 13 -Problem: 9 >> During the year, LeBlanc College received the following: • An unrestricted $70,000 pledge to be paid the following year • A $35,000 cash gift restricted by donors for study abroad scholarships • A notice from a recent business school graduate that he has named the college as a beneficiary of $15,000 in his will What amount of contribution revenue should LeBlanc College report in its statement of a
Answer Preview: c. …

, Chapter: 2 -Problem: 1 >> The following relate to the town of Coupland (dollar amounts in thousands):Revenue to be recognized in an enterprise funda. $0 b. $140 c. $900 d. $1,260 e . $1,040 f. $1,400 g. $2,200 h. $4,000 i. $6,300 j. $8,000 k. $8,500 l. $10,400 Transcribed Image Text: Historical cost of equipment held in a ve
Answer Preview: j.…

, Chapter: 11 -Problem: 5 >> A primary government should "blend" its financial statements with those of a component unit if a. The governing boards of the two governments are substantively the same. b. There is a financial benefit/burden relationship between the two governments. c. The primary government provides services exclusively to the component unit. d. The two governments satisfy GASB Statement No. 14 criteria for "eco
Answer Preview: a. The governin…

, Chapter: 5 -Problem: 1 >> A school district prepares its budget on a cash basis. It is contemplating the changes or actions that follow. For each, indicate the impact that the change would have (1) on yearending June 30 20Xl, general fund expenditures or transfers and (2) on year-ending June 30, 20Xl, government-wide expenses ( e.g., "increase expenditures by $X" or "no impact"). Provide a brief explanation of your respons
Answer Preview: 1. General Fund No impact Government-wide No impact In the fund statements, governments, when accounting for inventory using the consumptionmethod the district would recognize an expenditure when the …

, Chapter: 14 -Problem: 5 >> Percy's community hospital would ordinarily include proceeds from the sale of balloons in the gift shop in a. In a separate entity b. Ancillary service revenues c. Deductions from gift shop expenses d. Patient service revenues
Answer Preview: b. Anc…

, Chapter: 1 -Problem: 6 >> What is the significance for financial reporting of the many restrictions that are placed on a government's resources?
Answer Preview: Governments must maintain an accounting system that assures that restricted re…

, Chapter: 14 -Problem: 8 >> This problem was written by Dave Mest of Seton Hall University. The Dave Health-Care Center (DHCC)was created in 20X0 to provide medical services to low-income residents of Dave Town. DHCC had the following transaction s during the year: 1. It received a pledge from a donor for $20,000, payable in equal installments of $5,000 per year. The first payment of $5,000 was received in 20X0. This pledge
Answer Preview: Special Revenue Fund Enterprise Fund Not-for-Profit Revenu…

, Chapter: 16 -Problem: 7 >> In the federal government, " proprietary accounts" are those that a. Provide the data required to prepare accrual-basis financial statements b. Provide the data required to prepare budget-basis financial statements c. Are used to account for business-type activities d. Are used to account for classified information that cannot be made public for security reasons
Answer Preview: a. Provide the …

, Chapter: 12 -Problem: 7 >> Review the financial statements of the March of Dimes for 2019 as presented in Table 12-8. 1. Comment as best you can ( even in the absence of guidelines as to what constitutes norms for comparable foundations) on the fiscal strength of the organization as of December 31, 2019, with respect to: a. Liquidity b. Burden of debt relative to assets c. Adequacy of available resources to meet expenditure
Answer Preview: 1. a. Liquidity can best be measured by the quick ratio (cash, short-term investments, and current receivables to current liabilities) and the current …

, Chapter: 4 -Problem: 1 >> A city received two state grants in fiscal 20Xl. The first was an award for a maximum of $800,000, over a two-year period, to reimburse the city for 40 percent of specified costs incurred to operate a job opportunity program. During 20Xl, the city incurred allowable costs of $1.4 million (paid in cash) on the program. It was reimbursed for $500,000 and anticipates that it will receive the balance
Answer Preview: 1. 2. The first grant is clearly a reimbursement grant. Hence revenue should be recognized as …

, Chapter: 14 -Problem: 9 >> The Old-Fashioned Doc Clinic, a well-established health-care organization, received a $500,000 pledge in fiscal year 20X0 that was restricted to cover operating expenses. The gift was received over two years, $200,000 in the first year and $300,000 in the second year. The following table reflects the funds received as well as the amount spent on operating the clinic.How much should The Old-Fashion
Answer Preview: a…

, Chapter: 5 -Problem: 1 >> A city is having fiscal problems in 20Xl. It expects to report a deficit in its general fund, the only fund that is statutorily required to be balanced. To eliminate the anticipated deficit the city opts to "sell" its city hall- to itself- for $5 million. The city establishes a "capital asset financing agency." The agency is a separate legal entity but will have to be reported as a component unit
Answer Preview: 1. Entries to record sale and lease-back 2. Entry to record first lease payment 3. The transaction w…

, Chapter: 2 -Problem: 5 >> The following relate to the town of Coupland (dollar amounts in thousands):Depreciation expenditure to be recognized in the general funda. $0 b. $140 c. $900 d. $1,260 e . $1,040 f. $1,400 g. $2,200 h. $4,000 i. $6,300 j. $8,000 k. $8,500 l. $10,400 Transcribed Image Text: Historical cost of equipm
Answer Preview: …

, Chapter: 1 -Problem: 10 >> Which of the following is not one of the FASB's financial reporting objectives?a. Providing information about economic resources, obligations, and net resources b. Providing information to help resource providers make rational decisions c. Reporting on budgetary compliance d. Providing information on service efforts and accomplishments
Answer Preview: c. Repor…

, Chapter: 9 -Problem: 8 >> What is a public-private partnership (PPP)? Why do governments enter in to these agreements?
Answer Preview: A public-private partnership (PPP) is a long-term arrangement in which a govern…

, Chapter: 16 -Problem: 8 >> Which of the following statements would summarize all entity transactions, in addition to net cost of operations, that affect net position? a. Statement of net cost b. Statement of financing c. Statement of changes in net position d. Statement of budgetary resources
Answer Preview: c. State…

, Chapter: 8 -Problem: 1 >> In August 20X0, voters of Balcones, a medium-sized city, approved a $15 million general obligation bond issue to finance the construction of recreational facilities. In order to begin construction immediately, without waiting to complete the lengthy process of issuing long-term bonds, the city issued $4 million in bond anticipation notes (BANs). The notes matured in March 20Xl, but the city had th
Answer Preview: 1. Inasmuch as the city actually refinanced the BANs, it should account for them as long-term debt. …

, Chapter: 2 -Problem: 2 >> Central School District is awarded a $400,000 federal grant to implement and test a new way of teaching middle school math. The award stipulates that the district must provide a 20 percent match. a. In what fund-type ( e.g., general, special revenue, capital projects, etc.) should the district report the receipt of the $400,000 from the federal government? b. How should the offsetting fund balance
Answer Preview: a. A special revenue fund. As noted in the text, special revenues funds are used to account for r…

, Chapter: 10 -Problem: 9 >> A city received a donation of $10 million. The amount was to be set aside in an endowment fund with income only to be used to preserve and improve its parks. In the year it was received the $10 million should be a. Recognized as revenue in a special revenue fund. b. Recognized as a direct increase to fund balance in a permanent fund. c. Recognized as revenue in a permanent fund. d. Recognized as r
Answer Preview: c. Recognized as revenue in …

, Chapter: 2 -Problem: 9 >> The following relate to the town of Coupland (dollar amounts in thousands):Long-lived assets to be recognized in the general funda. $0 b. $140 c. $900 d. $1,260 e . $1,040 f. $1,400 g. $2,200 h. $4,000 i. $6,300 j. $8,000 k. $8,500 l. $10,400 Transcribed Image Text: Historical cost of equipment held
Answer Preview: a…

, Chapter: 12 -Problem: 2 >> In 20X0, the Northwest Ballet Association (NBA), a not-for profit performing arts organization, undertook a major capital campaign to fund a new theater, expected to cost $10 million. It was quickly able to raise $6 million, all of which was donor restricted. It borrowed the balance, issuing a 5-year, 8-percent term note for $4 million. During the year, the NBA broke ground on the project and incu
Answer Preview: 1. 2. The contributions were reported as restricted resources, because they were dono…

, Chapter: 5 -Problem: 3 >> In 20Xl, city employees earned $1.4 million in sick leave that they did not take during the year. The city estimates that of this amount, $0.8 million will actually be paid to employees who take sick leave. Of the balance, $0.l million will be paid to employees upon their retirement or resignation and $0.5 million will not have to be paid (since employees are limited in the number of sick days tha
Answer Preview: a…

, Chapter: 4 -Problem: 1 >> In 20X0, Lionsgate Logistics struck a deal with the city of Des Moines to move its headquarters to a property within the city to create jobs. Part of the incentive for the company to move its headquarters is a five-year tax abatement arrangement that would require the company to pay only 20% of the property tax in 20Xl after the move to the headquarters is completed, 30% in 20X2, 40% in 20X3, 50%
Answer Preview: Year 20X1 20X2 20X3 20X4 20X5 20X6 Total Gross Property Tax …

, Chapter: 3 -Problem: 2 >> The implication is clear. The variance between the final budget and actual amounts is more significant than that between the original and final budget amounts. What is the rationale for giving priority to the variance between the final budget and actual amounts? Can you make a case that the variance between the original budget and actual amounts is no less important?
Answer Preview: A key purpose of financial reports, per Concept Statement No. 1, Objectives of Financial Reporting (…

, Chapter: 10 -Problem: 10 >> For each of the following, indicate the fund, if any in which the government would account for the resources described. If a fiduciary, rather than a governmental fund, indicate the type of fund. Briefly justify your response. 1. A government contributes to a pension fund maintained by a union representing some of its employees. The government determines all significant terms of the plan, most not
Answer Preview: 1. The resources would be reported by the union. The government is not a fiduciary in that it neithe…

, Chapter: 5 -Problem: 4 >> Assume the same facts as in the previous question. The amount that the city should add to the liability account in the government-wide statement of net position as of year-end 20Xl is a. $0 b. $0.1 million c. $0.8 million d. $0.9 million
Answer Preview: b. …

, Chapter: 2 -Problem: 7 >> The following relate to the town of Coupland (dollar amounts in thousands):Revenue to be recognized in an internal service funda. $0 b. $140 c. $900 d. $1,260 e . $1,040 f. $1,400 g. $2,200 h. $4,000 i. $6,300 j. $8,000 k. $8,500 l. $10,400 Transcribed Image Text: Historical cost of equipment held i
Answer Preview: …

, Chapter: 5 -Problem: 1 >> 1. Prepare the journal entry in the general fund to reflect the vacation pay earned in 20Xl. 2. Prepare the journal entry to reflect the payments for vacation days that had been earned in prior years. 3. Comment on how the schedule of long-term obligations would be affected by these transactions. 4. Comment on how the government-wide statements would be affected by these transactions. Specifically
Answer Preview: 1 . Vacation pay earned during year General fund Vacation …

, Chapter: 8 -Problem: 2 >> Per the GASB, training costs should be expensed as incurred for both internally generated computer software and subscription-based technology arrangements (SBITAs). They should not be capitalized as part of either the resultant computer software or the subscription asset. When the GASB proposed these rules, several respondents to its exposure drafts thought that they should be either capitalized o
Answer Preview: A reasonable case could be made that general obligation debt should be reported as …

, Chapter: 2 -Problem: 10 >> The following relate to the town of Coupland (dollar amounts in thousands):Long-lived assets to be recognized in internal service fundsa. $0 b. $140 c. $900 d. $1,260 e . $1,040 f. $1,400 g. $2,200 h. $4,000 i. $6,300 j. $8,000 k. $8,500 l. $10,400 Transcribed Image Text: Historical cost of equipmen
Answer Preview: f.…

, Chapter: 13 -Problem: 9 >> A public college should most likely report its athletic foundation as which of the following in its financial statements under GASE 39: a. Student service b. Component unit c. Fund from external agency d. Affiliated organization
Answer Preview: b. C…

, Chapter: 1 -Problem: 3 >> The primary objective of a not-for-profit organization or a government is to a. Maximize revenues b. Minimize expenditures c. Provide services to constituents d. All of the above
Answer Preview: c. Prov…

, Chapter: 13 -Problem: 3 >> In 20X0, a government university was awarded a federal reimbursement grant of $9 million to carry out research. Of this, $6 million was intended to cover direct costs and $3 million to cover overhead. In a particular year, the university incurred $2 million in allowable direct costs and received $1.7 million from the federal government. It expected to incur the remaining costs and collect the rema
Answer Preview: c. $…

, Chapter: 16 -Problem: 8 >> In 20X0, Congress established a small business direct loan program. The program provides that qualifying businesses can obtain loans at a rate 5 percent below that prevailing on Treasury securities of comparable maturity. The program was to be in effect for a period of 12 years. Its total cost was estimated at $1.3 billion. In 20Xl, the Small Business Administration, which administers the program,
Answer Preview: 1. At the time Congress authorizes the program, the Small Business Administration need recognize nei…

, Chapter: 8 -Problem: 8 >> A city issues bond anticipation notes on October 21, 20X0. It refunds the notes with 30-year bonds in January 20Xl. In its financial statements for the fiscal year ending December 31, 20X0, which are issued in April 20Xl, it should report the bond anticipation notes as obligations: a. In both its government-wide statement of net position and a governmental fund balance sheet.b. In its government-w
Answer Preview: b. In its government…

, Chapter: 4 -Problem: 3 >> The city of Carlasville imposes a one percent sales tax in addition to that levied by the state. The state, however, collects the tax on behalf of the city. The state typically does not notify the city of the amount of taxes collected in the fourth quarter of the year for at least two months after the end of the city's fiscal year; sometimes, fact, not until after the city issues its financial rep
Answer Preview: Paragraph 27 of Statement 33 discusses situations in whi…

, Chapter: 14 -Problem: 3 >> A not-for-profit hospital received a donor-restricted contribution of $10 million, which is used to purchase new equipment. It estimates that the useful life of the equipment will be 10 years with no salvage value. In the year of the contribution, the hospital should recognize a. Depreciation of $1 million classified as an expense without donor restrictions b. A capital expense of $10 million clas
Answer Preview: a. Depreciation o…

, Chapter: 16 -Problem: 12 >> Go towww.USAspending.gov. 1. In the latest year for which data are available, which state was the beneficiary of the greatest amount of total federal assistance. How much did it receive? 2. Of that amount, how much was provided by the Department of Education? 3. Of the amount provided by the Department of Education, how much was received by the University of California System (i.e., Regents of the
Answer Preview: 1. The state is called California and it received the amount of $69 7 …

, Chapter: 4 -Problem: 5 >> For its fiscal year ending September 30, 20X2, Twin City levied $500 million in property taxes. It collected taxes applicable to fiscal 20X2 as follows (in millions):June 1, 20Xl, through September 30, 20Xl..................................................$ 20 October l, 20Xl, through September 30, 20X2..........................................$440 October 1, 20X2, through November 30, 20X2.......
Answer Preview: c.…

, Chapter: 4 -Problem: 1 >> The GASB has identified four classes of nonexchange revenues: • Derived tax • Imposed • Government mandated • Voluntary For each of the following revenue transactions affecting a city, identify the class in which the revenue falls and prepare an appropriate fund journal entry for the current year (20Xl) as necessary. Provide a brief explanation of, or justification for, your entry. 1. In December,
Answer Preview: 1. Government mandated. Grant receivable $20 Grant revenue $20 To record a state disability grant (At the time the award is announced the city had ful…

, Chapter: 14 -Problem: 7 >> The Gulf Coast Hospital, a not-for-profit healthcare institute, issued $140 million in term bonds to finance the construction of a new cancer unit at its main hospital. Terms of the bond covenant stipulate that $10 million of the proceeds of the bond issue be invested in U.S. government securities and must be held until the maturity of the bonds. The $10 million will increase which class of net as
Answer Preview: a. Net a…

, Chapter: 5 -Problem: 1 >> The Eaton School District engaged in the following transactions during its fiscal year ending August 31, 20Xl. • It established a purchasing department, which would be accounted for in a new internal service fund, to purchase supplies and distribute them to operating units . To provide working capital for the new department, it transferred $1.7 million from its general fund to the internal service
Answer Preview: 1. g 2. l 3. …

, Chapter: 14 -Problem: 7 >> Below are the abridged operating statements of two not for-profit hospitals that serve similar populations.1. What is the performance indicator of the hospitals? 2. Using the performance indicator, which hospital reported better operations? Does anything else reported give you p au se about this assessment? 3. Using just this data, what are some fundamental differences between these two entities t
Answer Preview: 1. Income from operations 2. Hospital B had better financial performance. Eve…

, Chapter: 6 -Problem: 1 >> The balance sheet and a comparative statement (budgetto- actual) of revenues, expenditures, and changes in fund balance of Parkville's general obligation debt service fund is presented as follows.1. Of what significance is the deficiency of revenues over expenditures? Is it an indication of poor management? 2. The fund reported a smaller deficit than was budgeted. Is this variance a sign of good m
Answer Preview: 1. The deficiency of revenues over expenditures is in no way an indication of poor management. Debt …

, Chapter: 14 -Problem: 6 >> Hannah, an auditor, is performing a routine review of a not-for-profit hospital and noted the following account balances in the statement of operations for the fiscal year ending September 30, 20X0:Calculate the amount the hospital would report as net patient service revenue in its statement of operations for the fiscal year ending September 30, 20X0. a. $2,040,000 b. $2,070,000 C. $2,115,000 d. $
Answer Preview: d. …

, Chapter: 6 -Problem: 10 >> Bond refundings are most likely to result in an economic gain when a. The bonds are subject to arbitrage b. There is an inverted yield curve c. The bonds were initially issued at a premium d. The bonds are subject to a call provision
Answer Preview: d. The bonds are subject to …

, Chapter: 8 -Problem: 9 >> Certificates of participation have the most in common with a. Revenue bonds. b. Pension annuities. c. Participating preferred stock. d. Short-term leases.
Answer Preview: a. R…

, Chapter: 5 -Problem: 1 >> A state government provided several grants to school districts and local governments during its fiscal year ending August 31. 1. On August 1, 20Xl, it announced a $2 million grant to a local school district for the purchase of computers. The district can spend the funds upon receipt. On September 15, 20Xl, the state mailed a check for the full amount to the district. The district spent $1.5 millio
Answer Preview: a. Journal entries 1. Grant expenditure $2 0 Cash $2 0 To record grant to acquire computersAlthough the grant is restricted as to purpose, the funds can be spent upon receipt (but not before). Therefo…

, Chapter: 8 -Problem: 8 >> A state authority (which is an independently legal entity) issues bonds back with a moral obligation of the state. This debt a. Is probably backed by the full faith and credit of the state b. Is probably subject to the same debt limitations as if it had been issued by the state itself c. Probably bears a lower interest rate than if there were no moral obligation associated with it d. Imposes great
Answer Preview: c. Probably bears a …

, Chapter: 16 -Problem: 1 >> The Business Development Corporation (BDC) , a federal agency (fictitious), makes loans to high-tech companies that satisfy specified criteria. The loans are intended to encourage research and development and are made a t rates substantially below market.The BDC made a loan of $100,000 to Interface Networks, Inc. The interest r ate was 6 percent, and the loa n was payable over a three-year period
Answer Preview: 1. The present value of the three loan payments of $37,411 discounted at the preva…

, Chapter: 14 -Problem: 4 >> The December 31, 20X0, Statement of Net Assets of Mosholu Medical Center, a major urban hospital and research center, is presented.The following transactions and events occurred in 20Xl: 1. The hospital received pledges without donor restrictions of $372,600 and pledges with donor restrictions of $216,000. It collected all of the pledges without donor restrictions and $180,000 of the pledges with
Answer Preview: a. Journal entries This entry reflects two contra-assets, Receivables for patient care allowance for …

, Chapter: 16 -Problem: 11 >> Review the most recent government-wide Consolidated Financial Report. 1. What was the amount of the government's deficit for the year? What was the amount of its net position? 2. What three departments incurred the largest amount of expenses (net)? 3. What was the government's main source of revenues? 4. The government's balance sheet excludes a significant amount of both assets and liabilities.
Answer Preview: 1. $31,838,000,000 2. Justice $7 5 billion (15%), Treasury …

, Chapter: 14 -Problem: 1 >> On June 30, 20X0, a county (government) hospital bought 3,000 shares of stock for $94,000 intending to hold the investment for its proposed expansion of its trauma center. The fair value of the stock on August 31, 20X0, the hospital's fiscal year-end, was $102,000. When the trauma center expansion was approved by the county district in February 20Xl, the hospital liquidated the stock for $90,000.
Answer Preview: 1. 2. There is no difference. The FASB standards for nongovern…

, Chapter: 16 -Problem: 9 >> Which of the following is an example of an "exchange" revenue? a. Proceeds from the sale of goods or services b. Transfers from another agency c. An increase in an 0MB allotment d. Collections of taxes on liquor sales
Answer Preview: a. Proceeds from the …

, Chapter: 10 -Problem: 9 >> For each of the following indicate the fund (or funds), if any, in which you think the activity should be accounted for and reported. If you think the fund should be a fiduciary fund, then indicate the type of fund; if a governmental or proprietary fund, then so state. Provide a brief explanation for your response.1. The Jackson School District holds all funds of the foundation that supports the J
Answer Preview: 1. Custodial fund. The district holds the funds and is thereby a fiduciary. However the school distr…

, Chapter: 5 -Problem: 1 >> The following is an excerpt from a note to the financial statements of an actual major city. The city accounts for inventories on the consumption basis. One of the city's departments, which is accounted for in the general fund, budgeted $199,000 in supplies expenditures for fiscal 20Xl. It began the 20Xl fiscal year with $30,000 of supplies on hand. It also had $12,000 of supplies on order. During
Answer Preview: 1. Journal entries (in thousands) To eliminate the portion of the reserve for encumbrances represent…

, Chapter: 10 -Problem: 1 >> Hayward City maintains a defined benefit pension plan for its employees. In a recent year, the city contributed $5 million to its pension fund. However, its annual pension cost as calculated by its actuary was $7 million. The city accounts for the pension contributions in a governmental fund. 1. Record the pension expenditure in the appropriate fund. 2. Suppose in the following year the city contr
Answer Preview: 1. First year Pension expenditure $5 Cash $5 To record pension c…

, Chapter: 3 -Problem: 6 >> In closing budgetary and expenditure accounts at year-end, a government should a. Debit appropriations and credit expenditures b . Credit appropriations and debit expenditures c. Debit expenditures and credit fund balance d. Credit appropriations and debit fund balance
Answer Preview: a. Debit …

, Chapter: 9 -Problem: 13 >> A city entered into a contract with World Wide Construction Company (WWCC) to design, construct and operate a tunnel for a period of 30 years. Once the tunnel was completed, WWCC had complete responsibility for all aspects of tunnel operations, including the ability to set, collect, and retain tolls. At the conclusion of the agreement, WWCC will transfer ownership of the tunnel to the city.The act
Answer Preview: 1. When the asset is first put into service the government need only recognize a receivable for the …

, Chapter: 3 -Problem: 5 >> In adopting and recording the budget, a government should a. Debit estimated revenues and credit revenues b . Credit estimated revenues and debit fund balance c. Debit revenues and credit fund balance d. Debit estimated revenues and credit fund balance
Answer Preview: d. Debit es…

, Chapter: 8 -Problem: 1 >> A city signs a three-year licensing agreement with a software company for use of a payroll management system in its electrical utility fund. Annual charges are $10,000 per year. It is the policy of the city to use a discount rate of 6 percent to value right-to-use assets when an interest rate is not explicitly stated in a lease or comparable agreement. It also depreciates all capital and similar a
Answer Preview: 1. Based on a discount rate of 6 percent, the right to use subscription asset would be valued at $28…

, Chapter: 4 -Problem: 1 >> Manor County was awarded a state grant to establish evening athletic programs for at-risk youth. The $3.6 million award, to cover the calendar year 20X2, was announced on November 15, 20Xl. According to the terms of the grant, the county will be reimbursed for all qualifying costs within 30 days of its filing an appropriate request-for-reimbursement form (a "voucher"). During 20X2, the county incu
Answer Preview: 1. Expenditures related to grants $2,700,000 Cash $2,700,000 To record expenditures related to grant…

, Chapter: 12 -Problem: 3 >> In December 20X0, the Consumer Association of America (CAA), a not-for-profit research organization, received a $6 million grant from the Sporting Goods Manufacturers Association (SGMA) to develop a football helmet that will provide better protection against head injuries. The grant was intended to cover $4 million of direct costs and $2 million of overhead costs. The grant contract stipulated tha
Answer Preview: 1. Research grant (contractual arrangement). This grant has the characteristics of an exchange trans…

, Chapter: 7 -Problem: 3 >> A government owns shares of common stock in a publicly owned company, the stock of which is widely traded. Such an investment would be categorized as a. A Level 1 investment. b. A Level 2 investment. c. A Level 3 investment. d. An investment that fits into none of the three categories.
Answer Preview: a. A …

, Chapter: 11 -Problem: 6 >> With respect to a component unit that does not satisfy the criteria for blending, the primary government a. Can opt to disclose key financial data about the unit in notes to the basic financial statements rather than in the statements themselves. b. Must, in its basic governmental fund statements, present detailed financial statements of the unit in a separate column. c. May, in its government-wid
Answer Preview: d. May in its basic governmen…

, Chapter: 4 -Problem: 1 >> The following relate to three grants that the town of College Hills received from the state during its fiscal year ending December 31, 20Xl. Prepare journal entries to record the three grants. 1. A cash grant of $200,000 that must be used to repair roads 2. $150,000 in cash of a total grant of $200,000 to reimburse the town for actual expenditures incurred in repairing roads; during the year the t
Answer Preview: Road repair grant Cash $200,000 Grant revenue $200,000 To record grant revenu…

, Chapter: 8 -Problem: 7 >> A government hospital entered into a licensing agreement with a commercial software company that would permit it to use the firm's patient billing program and related data storage facilities for a period of five years. The following information relates to the license and related events and transactions.1. At a cost of $25,000 (paid in cash) the hospital engaged a consulting firm to access the hosp
Answer Preview: 1. 2. 3. 4. 5. $ 25,000 Consulting expense …

, Chapter: 5 -Problem: 8 >> Assume the same facts as in the previous question. In its 20Xl government-wide financial statements, it should report Transcribed Image Text: Expense a. $170,000 b. $170,000 $190,000 $190,000 c. d. Inventory $ 0 $15,000 $ 5,000 $15,000
Answer Preview: Expense …

, Chapter: 14 -Problem: 5 >> Ms. Wiley's estate donated land with a fair value of $600,000 and subject to a mortgage of $320,000 to Saint Joseph Hospital without any restriction. Which of the following entries should the St. Joseph Hospital make to record this donation? Transcribed Image Text: a. Land Mortgage payable Revenues
Answer Preview: a. Land Mortgage …

, Chapter: 1 -Problem: 9 >> Interperiod equity refers to a condition whereby a. Total tax revenues are approximately the same from year to year b. Taxes are distributed fairly among all taxpayers, regardless of income level c. Current-year revenues are sufficient to pay for current-year services d. Current-year revenues cover both operating and capital expenditures
Answer Preview: b. Taxes are dis…

, Chapter: 4 -Problem: 1 >> Review the Annual Comprehensive Financial Report (ACFR) that you obtained. 1. What are the main sources of the government's revenues, including those from both governmental and business-type activities? 2. How are revenues from property taxes accounted for, i.e., as a single amount, or in multiple categories? Identify the various categories and indicate the percentage breakdown (e.g., residential
Answer Preview: 1. The main sources of the government's revenues from both governmental and business-type activities include sales taxes, income taxes, property taxes, motor fuel taxes, motor vehicle taxes, severance taxes, franchise taxes, and fees for services. 2. Property taxes …

, Chapter: 7 -Problem: 1 >> In the management discussion and analysis accompanying its 20XS financial statements, Tiber County reported that "for the fifth consecutive year revenues exceeded expenditures." However, a note included in required supplementary information disclosed the following:The county has not been depreciating its infrastructure system but instead has been taking GASE Statement No. 34's modified approach. 1
Answer Preview: 1. A statement user might be concerned because in the last three years the county has spent less on …

, Chapter: 13 -Problem: 7 >> Review the financial statements of Hamilton College in Chapter 2, and respond to the following questions: 1. What percentage of the college's total revenues (including nonoperating items and revenues of all funds) is attributable to tuition and fees (net of scholarship aid, because scholarships are, in effect, tuition discounts)? Do you think that, relative to other revenues, tuition is a fairly s
Answer Preview: 1. Tuition and fees: Net of scholarships = $73,442,000 Total revenues: operating revenues of …

, Chapter: 4 -Problem: 1 >> A state imposes a sales tax of 6 percent. The state's counties are permitted to levy an additional tax of 2 percent. The state dministers the tax for the counties, forwarding the proceeds to the counties 15 days after it receives the proceeds from the merchants. The state requires merchants to file a return and transmit collections either monthly, quarterly, or annually, depending on the amount of
Answer Preview: 1. States sales tax activity a. Modified accrual basis Sales taxes receivable $240 Sales tax revenue …

, Chapter: 13 -Problem: 9 >> Review the Statement of Activities of Hamilton College for the year ended June 30, 20X0, which is presented in Table 2-11. The statement indicates that during the year net assets increased by $40,604,000. Suppose that you are a member of the college's board of trustees. 1. From your perspective as a member of the college's board of trustees, does the increase in net assets indicate that the colleg
Answer Preview: 1. Although it is good that the college is reporting a profit for the year, the board would need add…

, Chapter: 1 -Problem: 7 >> Governments differ from businesses in that they a. Do not raise capital in the financial markets b. Do not necessarily engage in transactions in which they "sell" goods or servicesc. Are not required to prepare annual financial reports d. Do not issue common stock
Answer Preview: d. Do …

, Chapter: 12 -Problem: 4 >> 1. Prepare journal entries to take into account the following events and transactions . a. In January 20X0, the Wildlife Preservation Society received a grant from the Westwood Foundation of $6 million to be paid in three annual installments of $2 million starting on December 31, 20X0. The grant may be used for any legitimate activity engaged in by the Society. The Society applies a discount rate
Answer Preview: 1. Journal Entries a. Recognition of grant b. Recognition of contributions c. Recognition o…

, Chapter: 7 -Problem: 1 >> The following totals were drawn from Independence City's "Schedule of Changes in Capital Assets by Function and Activity," included in the city's financial statements for the year ending June 30, 20Xl:The complete schedule disaggregates the data by function (e.g., general government, public safety, public works, health and welfare, culture, and recreation) and subfunction (e.g., park maintenance,
Answer Preview: 1. If the useful life of the assets were 20 years, then one would anticipate that 1/20th or 5 percen…

, Chapter: 10 -Problem: 8 >> Upon the death of a police officer, Leff City establishes a trust fund to provide for the education of the officer's collegeage children.1. In what type of fund should the resources contributed to the fund be recorded?2. Prepare journal entries to record the transactions that follow:a. City residents contribute a total of $500,000 in cash. Per the trust agreement, the funds are to be invested in h
Answer Preview: 1. The resources would be recorded in a private purpose fiduciary trust fund 2. Journal entri…

, Chapter: 4 -Problem: 1 >> Kyle Township charges residents $100 per year to license household pets. As specified in a statute enacted in 20Xl, residents are required to purchase a license by October 1 of each year; the license covers the period October 1 through September 30. The license fees are not refundable. The statute authorizing the fees specifically states that the revenues are to be used to support the township's a
Answer Preview: 1. Cash $36,000 Revenue from license fees $36,000 To record license fees 2. The licen…

, Chapter: 9 -Problem: 10 >> In 2X21, a city opens a municipal landfill, which it will account for in an enterprise fund. It estimates capacity to be 6 million cubic feet and usable life to be 20 years. To close the landfill, the municipality expects to incur labor, material, and equipment costs of $10 million. 1. In 2X21, the city uses 300,000 feet of the landfill. Prepare the journal entry to record the expense for closure
Answer Preview: 1. 2X21 2. 2X22 3. 2X40 4. If the landfill had been accounted for …

, Chapter: 4 -Problem: 1 >> In August 20Xl, the last month of its fiscal year, Goldwaithe Township issued $88,000 worth of tickets for parking and traffic violations. Of these, the township collected $45,000. It expects to collect an additional $20,000 within 60 days of the close of the fiscal year and to collect $3,000 subsequent to that. It will have to write off the balance. The tickets are due and the protest period expi
Answer Preview: 1. 2. There would be no difference in the government-wide statements. The maximum …

, Chapter: 9 -Problem: 14 >> A state government, enters into an arrangement in which it will transfer to the Western Tollway Corporation (WTC) a recently constructed highway. The state reports the highway on its financial statements at its cost of $2 billion. Upon transfer, the state will receive an upfront payment of $4 billion. In return, the WTC will have the right to operate the highway and collect and retain the tolls fo
Answer Preview: 1. The arrangement satisfies all the criteria of an SCA. Most notably, the state, must approve all c…

, Chapter: 7 -Problem: 1 >> In 20XO , Bantham County incurred $80 million in costs to construct a new highway. Engineers estimate that the useful life of the highway is 20 years .1. Prepare the entry that the county should make to record annual depreciation (straight-line method) to facilitate preparation of its government-wide statements. 2. What reservations might you have as to the engineers' estimate of useful life? Why
Answer Preview: 1. Depreciation expensehighways $4,000,000 Highwayaccumulated depreciation $4,000,000 To re…

, Chapter: 8 -Problem: 9 >> A city issues revenue anticipation notes on October 21, 20X0. It repays the notes in January 20Xl. In its financial statements for the fiscal year ending December 31, 20X0, which are issued in April 20Xl, it should report the revenue anticipation notes as obligations: a. In both the government-wide statement of net position and a governmental fund balance sheet. b. In the go

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9 Reviews for Government And Not For Profit Accounting Concepts And Practices Textbook Questions And Answers