A city engages in the following transactions seen below. For each transaction indicate the amount of...
A city engages in the following transactions seen below. For each transaction indicate the amount of revenue or expenditure that it should report in 2011. Assume first that the main objective of the financial statements is to enable users to assess budgetary compliance. Then calculate the amounts, assuming that the main objective is to assess interperiod equity. The city prepares its budget on a "modified" cash basis (that is, it expands its definition of cash to include short term marketable securities) and its fiscal year ends on December 31.
5.On January 2, 2011, the city acquired a new $10 million office building, financing it with 25 year serial bonds. The bonds are to be repaid evenly over the period they are outstanding – that is, $400,000 per year. The useful life of the building is 25 years.
6.On January 3, 2011, the city acquired another $10 million office building, financing this facility with 25 year term bonds. The bonds will be repaid entirely when they mature on January 1, 2036. The useful life of this building is also 25 years.
What would the dollar amounts be for budgetary and interperiod equity?
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A city engages in the following transactions seen below. For
each transaction indicate the amount of...
The dual objectives of assessing interperiod equity and ensuring budgetary compliance may necessitate different accounting practices....
The dual objectives of assessing interperiod equity and ensuring budgetary compliance may necessitate different accounting practices. A city engages in the transactions that follow. For each transaction, indicate the amount of revenue or expenditure that it should report in 2020. Assume first that the main objective of the financial statements is to enable users to assess budgetary compliance. Then calculate the amounts, assuming that the main objective is to assess interperiod equity. The city prepares its budget on a "modified"...
For each of the following indicate the amount of revenue that Beanville should recognize in its...
For each of the following indicate the amount of revenue that Beanville should recognize in its 2017 (1) government-wide statements and (2) governmental fund statements. Provide a brief description of explanation for your responses. 1. The state in which Beanville is located collects sales taxes for its cities and other local governments. The state permits small merchants to remit sales taxes quarterly. The state salces tax rate is 6%. In December 2016, city merchants collected $50 million in sales taxes...
EX. 3-3 A county engages in basic transactions. Kilbourne County engaged in the following transactions in...
EX. 3-3 A county engages in basic transactions. Kilbourne County engaged in the following transactions in summary form during its fiscal year. All amounts are in millions. You need not be concerned with the category of funds balances to which reserves for encumbrances are classified on the fund balance sheet. Its commissioners approved a budget for the current fiscal year. It included total revenues of $860 and total appropriations of $850. It ordered office supplies for $20. It incurred the...
EX. 3-3 A county engages in basic transactions. Kilbourne County engaged in the following transactions in...
EX. 3-3 A county engages in basic transactions. Kilbourne County engaged in the following transactions in summary form during its fiscal year. All amounts are in millions. You need not be concerned with the category of funds balances to which reserves for encumbrances are classified on the fund balance sheet. 1. Its commissioners approved a budget for the current fiscal year. It included total revenues of $860 and total appropriations of $850. 2. It ordered office supplies for $20. 3....
For each of the following transactions or adjustments indicate the effect of the transaction or adjustment...
For each of the following transactions or adjustments indicate the effect of the transaction or adjustment on assets, beties, and net income by entering for each account affected the account name and amount and indicating whether it is an addition of a Subcon Transaction has been done as an illustration Net income is not affected by every transaction. In some cases, only one Column may be afected because all of the specific accounts afected by the transaction are included in...
The following is a series of transactions for Berkeley City. Indicate how Berkeley reports each transaction...
The following is a series of transactions for Berkeley City. Indicate how Berkeley reports each transaction within the government-wide financial statements and then on the fund financial statements. Assume that Berkeley follows a policy of considering resources as available if they will be received within 60 days. Incurred Liabilities are assumed to be claims to current resources if they will be paid within 60 days. Borrowed money by issuing a 20-year bond for $5 million, its face value. This money...
The following is a series of transactions for Berkeley City. Indicate how Berkeley reports each transaction...
The following is a series of transactions for Berkeley City. Indicate how Berkeley reports each transaction within the government-wide financial statements and then on the fund financial statements. Assume that Berkeley follows a policy of considering resources as available if they will be received within 60 days. Incurred Liabilities are assumed to be claims to current resources if they will be paid within 60 days. Borrowed money by issuing a 20-year bond for $5 million, its face value. This money...
For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment...
For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net Income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction...
For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment...
For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction...
(15 Marks) QUESTION 2 The following is an independent events and transactions a) The entity has...
(15 Marks) QUESTION 2 The following is an independent events and transactions a) The entity has not depreciated its hotel buildings as it maintains it very well. The hotel building was constructed at a cost of RM200 million in 2002 and its scrap value was estimated at RM20,000 with 30 years useful life (3 marks) b) An entity was depreciating its plant on a straight line basis In year 2018, it changes its depreciation method to reducing balance method. (3...
The dual objectives of assessing interperiod equity and ensuring budgetary compliance may necessitate different accounting practices. A city engages in the transactions that follow. For each transaction, indicate the amount of revenue or expenditure that it should report in 2020. Assume first that the main objective of the financial statements is to enable users to assess budgetary compliance. Then calculate the amounts, assuming that the main objective is to assess interperiod equity. The city prepares its budget on a "modified"...
EX. 3-3 A county engages in basic transactions. Kilbourne County engaged in the following transactions in summary form during its fiscal year. All amounts are in millions. You need not be concerned with the category of funds balances to which reserves for encumbrances are classified on the fund balance sheet. 1. Its commissioners approved a budget for the current fiscal year. It included total revenues of $860 and total appropriations of $850. 2. It ordered office supplies for $20. 3....
For each of the following transactions or adjustments indicate the effect of the transaction or adjustment on assets, beties, and net income by entering for each account affected the account name and amount and indicating whether it is an addition of a Subcon Transaction has been done as an illustration Net income is not affected by every transaction. In some cases, only one Column may be afected because all of the specific accounts afected by the transaction are included in...
For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net Income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction...
For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction...
(15 Marks) QUESTION 2 The following is an independent events and transactions a) The entity has not depreciated its hotel buildings as it maintains it very well. The hotel building was constructed at a cost of RM200 million in 2002 and its scrap value was estimated at RM20,000 with 30 years useful life (3 marks) b) An entity was depreciating its plant on a straight line basis In year 2018, it changes its depreciation method to reducing balance method. (3...
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