Government-wide statements report on assets and liabilities that are denied recognition on funds statements. Entrepreneurs Consultants, a state agency, was estab- lished to provide consulting services to small businesses. It maintains only a single general fund and accounts for its activities on a modified accrual basis. During its first month of operations, the association engaged in, or was affected by, the following transactions and events: 1. It received an unassigned grant of $100,000. 2. It purchased five computers at $2,000 each. 3. It paid wages and salaries of $6,000. 4. Itborrowed$24,000fromabanktoenableittopurchase an automobile. It gave the bank a long-term note. 5. It purchased the automobile for $24,000. 6. It made its first payment on the note—interest of $200. 7. It destroyed one of its computers in an accident. The computer was not insured. a. Prepare journal entries in the general fund to record each of the transactions or other events. b. Prepare a balance sheet and a statement of revenues and expenditures for the general fund. c. Prepareagovernment-widestatementofnetposition (balance sheet) and statement of activities. These should be on a full accrual basis. Assume that the capital assets have a useful life of five years and that no
depreciation is to be charged on the computer that was destroyed. THIS QUESTION IS SOLVED ALREADY BUT I WOULD LIKE TO RECONCILE THE CASH $ 83,800 AND THE FUND BALANCE $ 85,400. THE ANSWER IS ALREADY ON CHEGG SO YOU CAN TAKE A LOOK AND JUST RECONCILE THE TWO AMOUNTS.
1. Calculation of Cash balance
Particulars | Amount |
Grant Received | 100,000 |
Less: Computers Purchased | (10,000) |
Less: Wages & Salaries | (6,000) |
Add: Loan Received | 24,000 |
Less: Automobile Purchased | (24,000) |
Less: Interest paid on loan | (200) |
Cash Balance | 83,800 |
1. Calculation of Fund balance
Particulars | Amount |
Grant Received | 100,000 |
Less: Wages & Salaries Paid | (6,000) |
Add: Bank Loan | 24,000 |
Less: Automobile Purchase | (24,000) |
Less: Interest on note | (200) |
Less: Net Value of Computers (NOTE) | (8,400) |
Fund Balance | 85,400 |
NOTE: Calculation of net value of assets
Computer Purchased = $10,000
Depreciation on computers = (4 x 2,000) / 5 years = $1,600
Net Value of computer = 10,000 - 1,600 = $8,400
Government-wide statements report on assets and liabilities that are denied recognition on funds statements. Entrepreneurs Consultants,...
1. With respect to the preparation of fund basis financial statements, enterprise funds are considered to be major when which of the following conditions exist? Multiple Choice Both When total assets, liabilities, revenues, or expenses of that individual enterprise fund constitutes 10% of the total for the enterprise fund category and When total assets, liabilities, revenues, or expenses of that individual enterprise fund are 5% of the total of the governmental and enterprise categories, combined required to be a major...
$614,400 $614,400 Assigned fund balance consists of outstanding encumbrances. Required Prepare the budget entry that was made at January 1,2020. b. Calculate the balance in fund balance-unassigned on December 31, 2019. Prepare the required closing entries at year-end d. Prepare the general fund statement of revenues, expenditures, and changes in fund balances for 2020. Prepare the general fund balance sheet at December 31, 2020. C. e P10.12 General Fund-Entries and Financial Statements Below are the July 1, 2019 balances for...
Reporting reconciliation between fund and government-wide financial statements Sai-Tu Village reported outstanding long-term bonds payable of $6,000,000 in the governmental activities column of its government-wide statement of net position for the year ended December 31, 2019. During 2020, Sai-Tu Village sold $500,000 of new general obligation bonds and repaid $300,000 of bonds outstanding at the beginning of the year. Based on this information, determine the reconciliation amounts reported in the two funds’ financial statements to the two government-wide financial statements....
Chapter 2 The Use of Funds in Governmental Accounting LO 2 MC2-15. Under the modified accrual basis of counting for a government property tax revenues show be recognized in the accounting period in which they G are levied b are collected in cash c are levied, subject to a provision for collectible receivables d/ are levied and become measurable wil available LO 3 MC3-16. A city-owned electric utility, which serves primarily the city's residents, sends a bill to the city...
"4–27. Operating Transactions and Financial Statements. (LO4-1 through LO4-3) The City of Castleton’s General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Debits Credits Cash $276,120 Taxes Receivable—Delinquent 183,000 Allowance for Uncollectible Delinquent Taxes $21,960 Interest and Penalties Receivable 6,280 Allowance for Uncollectible Interest and Penalties 1,160 Inventory of Supplies 6,100 Vouchers Payable 48,500 Due to Federal Government 29,490 Deferred Inflows of Resources—Unavailable Revenues 166,160 Fund Balance—Nonspendable—Inventory of Supplies ...
I mainly need this last part
"preparation of fund financial statements and schedules"
thanks!
Scenario and General Fund budgetary journal entries The scenario: Croton City maintains four governmental-type funds: a General Fund, a Library Special Revenue Fund, a Capital Projects Fund, and a Debt Service Fund. Croton City started its calendar year 2019 with the following General Fund balances (all numbers are in thousands of dollars) Debits Credits Cash Property taxes receivable Salaries payable Deferred property tax revenues Unassigned fund...
Different types of funds justify different practices as to
budgets and commitments.
Review the budget note to the Smith City's financial statements
presented in the previous problem. Assume that the city engaged in
the following transactions in 2020 and 2021:
In 2020, it signed a service contract with a private security
company. The company agreed to provide security services to the
city's for one year at a cost of $72,000 ($6,000 per month.) By
year end the company provided, and...
p3-1, p3-2, p3-3
Chapter 3 Basic Accounting Systems Accrual Bass 133 Uabilities Current liabilities Accounts receivable.......... Accumulated depreciation-building................. ******** Accumulated depreciation equipment.............. Net loss. Total liabilities....... Stockholders' Equity Wages payable........... . Common stock. ............. Retained earnings... Total stockholders' equity.. . Total liabilities and stockholders' equity ....... $ 40.000 54,600 32.400 44,200 $172.000 $ 100 200,000 447000 655,100 5297/100 Problems Obj. 2 P3-1 Accrual basis accounting San Mateo Health Care Inc. is owned and operated by Rachel Fields, the sole stockholder....
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows.Business Solutions had the following transactions and events in December 2019. Business Solutions had the following transactions and events in December 2019. Dec.2 Paid $975 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.3 Paid $410 cash for minor repairs to the company’s computer.4 Received $4,750 cash...
Accounting 2140 – Comprehensive Problem On October 1, 2019, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2019. After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting...