Following are some of Vista Village’s events during calendar year 2021. For each event, state (a) the amount the Village would report as expenditures if the event occurred in a governmental-type fund and (b) the amount it would report as expenses if the event occurred in an Enterprise Fund. 1. The amount owed to employees for vacation and sick leave increased from $720,000 to $765,000 during the year. Employees are permitted to receive payment for unused vacation and sick leave days when they retire; at year-end, however, none of the employees had retired. 2. At December 31, 2021 interest accrued on outstanding long-term debt amounted to $63,000. The interest was due to be paid on May 1, 2022.
Effect of different measurement focuses and bases of accounting
Following are some of Vista Village’s events during calendar year 2021. For each event, state (a) the amount the Village would report as expenditures if the event occurred in a governmental-type fund and (b) the amount it would report as expenses if the event
occurred in an Enterprise Fund.
1. The amount owed to employees for vacation and sick leave increased from $720,000
to $765,000 during the year. Employees are permitted to receive payment for unused
vacation and sick leave days when they retire; at year-end, however, none of the employees had retired.
2. At December 31, 2021 interest accrued on outstanding long-term debt amounted to $63,000. The interest was due to be paid on May 1, 2022.
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