The following relate to the town of Coupland (dollar amounts in thousands):Equipment used in a vehicle repair service that provides service to other departmentson a cost-reimbursement basis; the equipment has a 10-year life with no salvage valueProperty taxes levied and collectedHotel taxes (restricted to promotion of tourism) collectedProceeds of bonds to build a parking garage that must be repaid from user chargesProceeds of general obligation bonds to finance construction of a new city hall; thebuilding, which was completed during the year, has a useful life of 30 years with nosalvage valueProceeds of a federal grant to hire additional police officersFees charged to, and collected from, customers by the electric utility10. Long-lived assets to be recognized in internal service fundsa. $0g. $2,200b. $140c. $900h. $4,000d. $1,260e. $1,040f. $1,400$1,400Refer to the two lists below. Select the appropriate amounts from the lettered list for each item in thenumbered list. An amount may be selected once, more than once, or not at all.1. Revenue to be recognized in an enterprise fund2. Revenue to be recognized in special revenue funds3. Bonds payable to be recognized in the general fund4. Bonds payable to be recognized in enterprise funds5. Depreciation expenditure to be recognized in the general fund6. Depreciation expense to be recognized in internal service funds7. Revenue to be recognized in an internal service fund8. Revenue to be recognized in the general fund9. Long-lived assets to be recognized in the general fundi. $6,300j. $8,000k. $8,5001. $10,400$6,300$1,200$4,000$9,000$1,000$8,000

Revenue -The total value of all sales of products and services that a business records over a…

Answered: The following relate to the town of…

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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The City of Chessie received two contributions during its current fiscal year: A developer contributed 10 acres of land as part of an agreement with the city to allow more houses to be built per acre than current zoning laws permit. The city will use the land to build a park. The developer purchased the land for $1.5 million. The fair value of the land at the time of the contribution was $1.9 million. · A local resident contributed 30 acres of land to the city. The city agreed that it would sell the land and use the proceeds to add a new wing to the city’s senior center. The resident paid $500,000 for the land. When it was contributed, it had a fair value of $1.5 million. The city sold the land to several developers a month after its fiscal year-end for $1.7 million. a. Prepare journal entries to record each of these contributions in the city’s general fund. b. Comment on and justify any differences in the way you recognized each of these transactions. c. Would your answer on the…
(Related to Checkpoint 5.2) (Future value) Bob Terwilliger received $15,209 for his services as financial consultant to the mayor's office of his hometown of Springfield. Bob says that his consulting work was his civic duty and that he should not receive any compensation. So, he has invested his paycheck into an account paying 4.32 percent annual interest and left the account in his will to the city of Springfield on the condition that the city could not collect any money from the account for 150 years. How much money will the city receive in 150 years from Bob's generosity? The amount of money the city will receive in 150 years from Bob's generosity is $ (Round to the nearest cent.)
Officials for the City of Artichoke, West Virginia, have recently formed a transit authority to create a public transportation system for the community. These same Officials are now preparing the city's CAFR for the most recent year. The transit authority has already lost a considerable amount of money and the officials have become interested in its reporting and whether it qualifies as a component unit of the city. Following are several articles written about the reporting of component units by a state or local government: "Changes in Component Units," Government Finance Review, February 2011. "GASB Issues Guidance on Financial Reporting Entity, Component Units," Accounting Policy & Practice Report, January 7, 2011. "Financial Reporting for Affiliated Organizations," The Journal of Government Financial Management, Winter 2003. "How to Implement GASB Statement No. 34," The Journal of Accountancy, November 2001. "GASB Issues Guidance on Blending Certain Component Units into…
A city has a solid waste landfill that was filled 12 percent in Year 1 and 26 percent in Year 2. During those periods, the government expected that total closure costs would be $2 million. As a result, it paid $50,000 to an environmental company on July 1 of each of these two years. Such payments will continue for several years to come. Indicate whether each of the following independent state-ments is true or false and briefly explain each answer. The city has a December 31 year-end.a. The government-wide financial statements will show a $230,000 expense in Year 2 but only if reported in an enterprise fund.b. The fund financial statements will show a $50,000 liability in Year 2 if this landfill is reported in the general fund.c. The fund financial statements will show a $50,000 liability at the end of Year 2 if this landfill is reported in an enterprise fund.d. If this landfill is reported in an enterprise fund, the government-wide financial statements and the fund financial statements…
Neighboring parishes in Louisiana have agreed to pool road tax resources already designated for bridge refurbishment. At a recent meeting, the engineers estimated that a total of $500,000 will be deposited at the end of next year into an account for the repair of old and safety-questionable bridges throughout the area. Further, they estimate that the deposits will increase by $100,000 per year for only 9 years thereafter, then cease. Determine the equivalent (a) present worth and (b) annual series amounts, if public funds earn at a rate of 5% per year. Draw also the cash flow diagram
A city builds sidewalks throughout its various neighborhoods at a cost of $2.1 million. Which of the following is not true? Because the sidewalks qualify as infrastructure, the asset is viewed in the same way as land so that no depreciation is recorded. Depreciation is required unless the modified approach is utilized. The modified approach recognizes maintenance expense in lieu of depreciation expense for qualifying infrastructure assets. The modified approach is allowed only if the city maintains the network of sidewalks at least at a predetermined condition.
The following relates to the town of Coupland (Dollar amounts in thousands): Equipment used in a vehicle repair service that provides service to other departments on a cost-reimbursement basis; the equipment has a 5-year life with no salvage value $1,400 Property taxes levied and collected $6,300 Hotel taxes (restricted to promotion of tourism) collected $1,200 Proceeds of bonds to build a parking garage that must be repaid from user charges $4,000 Using the information above to answer the following questions: Revenue to be recognized In internal service fund? A.) 0 B.) $1,400 C.) $140 D.) None of above
Officials for the city of Winfield have agreed to forgo real estate taxes normally charged to Jamieson Corporation for the subsequent 10 years. In exchange, Jamieson has agreed to build a distribution facility that is expected to hire 500 new employees. What information must the city provide in its financial statements to inform taxpayers and other interested parties about the nature of this tax abatement?
In response to a petition signed by the property owners of Riverdale Subdivision, the city of Pewaukee will oversee the installation of sidewalks, curbs, and gutters in the subdivision, to be accounted for in the city’s capital projects fund. Pewaukee reports on a calendar-year basis. Construction is estimated to cost $900,000 and will be financed by a $100,000 county grant, a $50,000 transfer from the city’s general fund, and special assessments of $750,000 to be levied against subdivision property owners. One-third of the levy is to be due on February 1 of each year, starting with 2018. The first $250,000 installment will be received by the capital projects fund directly. The remaining installments will be collected by the debt service fund and will be used to service the related bond debt. The project is to begin on January 15, 2018, and is to take 18 months to complete. It is estimated that 70% of the work will be completed during 2018.To cover construction costs, a 6%, $500,000…
Roads and Highways Department (RHD), Khulna has agreed to pool bridge and road toll-tax resources already designated for existing old bridge refurbishment. At a recent RHD meeting, the engineers estimated that a total of $500,000 will be deposited at the end of next year into an account for the repair of old and safety questionable bridges throughout the area. Further, they estimate that the deposits will increase by $100,000 per year for only 9 years thereafter, then cease. Determine the equivalent (a) present worth and (b) annual series amounts, if public funds earn at a rate 4% per year.
Altona City opened a landfill that it elects to account for in an enterprise fund. At the time the landfill was opened the government estimated total capacity of the landfill to be 5 million cubic feet, useful life to be 20 years, and total closure and postclosure costs to be $18 million. At the end of Year 1, the government reestimated total closure costs to be $18.3 million and estimated capacity to be same as the original estimate. At the end of Year 2, the government reestimated total capacity to be 4.8 million cubic feet and total closure costs to be $18.5 million. At the end of Year 3, the government reestimated useful life to be 17 years but capacity remained unchanged from the preceding year and closure and postclosure costs were estimated to be $18.4 million. REQUIRED: Prepare journal entries in the enterprise fund to record the following events. a)During Year 1, the city estimates that 300,000 cubic feet of capacity were used. Record the landfill expense. b)During…

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