The City of Southern Pines, during the year, incurred expenditures for capital outlays amounting to $22,500,000.Depreciation incurred for the year was calculated to be $1,500,000. (2 entries - 2 points).1☑ Ff▾ A BIIIIIII The City of Southern Pines maintains its books so as to prepare fund accounting statements and prepares worksheetadjustments in order to prepare government-wide financial statements. You are to prepare, in journal form,worksheet adjustments for each of the following situations. Use the account titles presented during the first 4weeks where appropriate. Use the account title referred to in the question for all other entries (generalobligation bonds = Bonds Payable).

Worksheet Adjustments for City of Southern Pines (Government-Wide Basis)Scenario 1: Recording…

Answered: The City of Southern Pines, during the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Johnson City has the following activity associated with capital assets that are related to governmental activities for the fiscal year ended June 30, 2022: Beginning capital assets balance ? Purchases of capital assets $225,000 Historical cost of capital assets sold $85,000 Ending capital assets balance $1,190,000 In addition, accumulated depreciation for these capital assets had the following activity: Beginning balance $249,000 Depreciation expense $82,000 Accumulated depreciation for assets sold? Ending balance $300,000 Finally, the proceeds associated with capital assets sold were $60,000. Depreciation expense $82,000 Accumulated depreciation for assets sold? Ending balance $300,000 Finally, the proceeds associated with capital assets sold were $60,000. Using this information, prepare the four necessary journal entries (beginning, purchases, sales, and depreciation) to adjust the government fund financial statements to the government-wide statements.
13 The City of Brown Creek constructed a new storage facility using the city's own public works employees. Construction costs were incurred in the amount of $900,000, plus $25,000 in interest on short-term notes used to finance construction. What amount should be capitalized in the government-wide statements? Multiple Choice O $900,000. $925,000. $875,000. $0.
4. The city of Alpine incurred the following costs during the year in its property tax collection department: Purchase of computer equipment Salaries and wages Purchase of electricity from the city-owned electric utility Purchase of supplies, all of which were used during the year $ 10,000 $400,000 a. $400,000 b. $410,000 c. $450,000 d. $460,000 $ 40,000 $ 10,000 As a consequence of these transactions, the amount that Alpine should report as expenditures in its gen- eral fund is 4000
Problem 5: Comparing the measurement focus and basis of accounting of governmental funds with the measurement focus and basis of accounting of proprietary funds The information below pertains to the Village of Brexitville for the year ended December 31, 2022. Purchased 10 HP printers at the beginning of 2022 for $11,000; the printers are expected to last 4 years and have a salvage value of $1,000; Paid $42,000 to the federal government representing the Village’s share of payroll taxes for FICA and Medicare; Paid $50,000 to retire bonds payable; paid interest on outstanding bonds of $1,000; Received a bill for $2,000 on January 2, 2023, from Peoples Gas for natural gas used to heat government facilities in November and December, 2022. Required: Compute total expenditures for the local government assuming transactions A, B, and D are recorded in the general fund, and transaction C is recorded in a debt service fund. Compute total expenses for the government assuming all transactions…
On January 1, 20x1, Entity A started the construction of a qualifying asset. The qualifying assetis financed through general borrowings. The average expenditures during the year amounted to₱9,500,000. The capitalization rate is 11%. The actual borrowing costs incurred during the periodwere ₱1,990,000. How much are the borrowing costs eligible for capitalization? a. 1,990,000 b. 1,045,000 c. 1,090,000 d. 990,000
ABC corporation received P10,000,000 from the City of Caloocan in relation to defraying its research expenses in relation to COVID-19 for the next 5 years. The research expenses will be incurred by the entity as follows: 1st year 2nd • year 3rd year Ath year 5th year P2.000.000 1,000.000 3.000.000 4.000.000 2 500.000 P12,500,000 The grant income to be recognized in the second year should be?
10. An entity had the following loans outstanding during 20X1 and 20X2.Specific construction loan, 2,000,000 - 15%General loan, 15,000,000 - 12%The entity began the self-construction of a new building on January 1, 20X1 and the building was completed on December 31, 20X2. The following expenditures were made during 20X1 and 20X2: January 1, 20X1 - 2,000,000; July 1, 20X1 - 4,000,000; November 1, 20X1 - 3,000,000; July 1, 20X2 - 1,000,000. What is the cost of the building?
C. 26. A. B. D. The capital projects fund of Hysham completed construction of a new building. The building should be reported in the: I. government-wide statement of net assets. II. capital projects fund. A) I only B) II only C) Either I or II D) Neither I nor II 27. Which presentation method combines the component unit's results into the primary government's financial results? $ 600,000 Proceeds from general obligation bond issue $ 2,000,000 Transfer from Cherry's general fund $ 150,000 In its 20X1 capital projects fund operating statement, Cherry should report these amounts as: Other financing sources A) Blended presentation B) Discrete presentation C) Combined presentation D) Consolidated presentation 28. Financing for the renovation of Cherry City's municipal park, begun and completed during 20X1, came from the following sources: Grant from state government S 0 600,000 $2,750,000 $2,600,000 Revenues $ A) Option A B) Option B C) Option C D) Option D $ $ $ $ 2,750,000 2,150,000 0…
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III

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