Topic: Special purpose activities LO 1 In 2019, a city receives $5,000,000 in funding from a private foundation, to finance summer art programs for children. Income from any investments of this funding must be used for these programs. The city accounts for this funding in a permanent fund. During 2019, the city invests $4,000,000, earns $70,000 in investment income, and spends $50,000 on summer art programs. At the end of 2019, how is fund balance reported? Fund balance-nonspendable, $5,000,000; fund balance-restricted, $20,000. b. Fund balance-nonspendable, $4,000,000; fund balance-committed, $1,020,000. Fund balance-restricted, $5,000,000; fund balance-committed, $20,000. а. С. d Eund balance-committed $4 000 00O: fund balance-assigned $1 020 000

Topic: Special purpose activities LO 1 In 2019, a city receives $5,000,000 in funding from a private foundation, to finance summer art programs for children. Income from any investments of this funding must be used for these programs. The city accounts for this funding in a permanent fund. During 2019, the city invests $4,000,000, earns $70,000 in investment income, and spends $50,000 on summer art programs. At the end of 2019, how is fund balance reported? Fund balance-nonspendable, $5,000,000; fund balance-restricted, $20,000. b. Fund balance-nonspendable, $4,000,000; fund balance-committed, $1,020,000. Fund balance-restricted, $5,000,000; fund balance-committed, $20,000. а. С. d Eund balance-committed $4 000 00O: fund balance-assigned $1 020 000

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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Residents of the town of Sunny View, Arizona authorized a $5,000,000 renovation to theirhistoric town hall on November 15, 2022. Financing for the project consists of $2,500,000 froma 5 percent serial bond issue, $1,500,000 from a state grant, and $1,000,000 from the GeneralFund. Debt service for the serial bonds will be provided by a one-quarter-cent city sales taximposed on every dollar of sales in the city. Required: Complete the necessary journal entries to record the related transactions in the town's capitalprojects fund, debt service fund, and governmental activities at the government-wide level. Youmay ignore entries in the General Fund. The town has a calendar year-end. n. The sales tax collections for debt service amounted to $250,000. o. Central Paving and Construction gave a final billing to the town for $2,000,000. Upon last inspection by the Public Works Department, a leak was discovered in the roof.p. Public works employees installed a new sidewalk and landscaping at a…
The City of Sunnyville’s General Fund has the following net resources at year end: $55,000 for LT Advance to an internal service fund $375,000 approved by the City Council with specific conditions for its use $2,500 of supplies inventory $60,000 state grant for snow removal $150,000 City Council resolution approved for funds to renovate city hall $400,000 to be used to fund government operations in the future Outstanding encumbrances of $80,000 for the purchase of furniture & fixtures What would be the total “Non-spendable” fund balance? Select one: a. $2,500 b. $57,500 c. $75,000 d. $105,000
Journal entries and financial statements—Capital Projects FundThe following transactions occurred during 2021:1. The City of Watersville approved the construction of an enclosed concert arena for a total cost of $75,000,000 in order to attract professional events. On the same day, a contract with a 6 percent retainage clause was signed with V.P. Construction Company for the arena. The arena will be financed by a $75,000,000 general obligation bond issue. Investment revenue of $4,000,000 was also included in the budget. {Assume that the budget is recorded in the accounts and encumbrance accounting is used.)2. Watersville received $76,000,000 from the sale of bonds, which included a premium of $1,000,000 over the $75,000,000 face value. The $1,000,000 premium was transferred immediately to the appropriate Debt Service Fund.3. The city invested $74,900,000 in securities.4. The contract signed with V.P. stipulated that the contract price included the architect fees. The architects were…
Exercise 7-6 (Algo) On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3,230,000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3,230,000 and any additional gifts are to be invested and retained as principal. Income from the trust is to be distributed to community nonprofit groups as directed by a Board consisting of city officials and other community leaders. The agreement provides that any increases in the market value of the principal investments are to be held in trust; if the investments fall below the gift amounts, then earnings are to be withheld until the principal amount is re- established. The following events and transactions occurred during the fiscal year ended June 30, 2020. Record them in the Belvedere Community Trust Fund: 1. On July 1, the original gift of cash was received. 2. On August 1, $2,191,000 in XYZ Company bonds were purchased at par plus accrued interest ($36,517).…
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Prepare a preclosing trial balance for the General Fund as of December 31, 2021.
3.) Required: On January 1, 2024, a foundation made a pledge to pay $20,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization, as a salary supplement for a well-known researcher. On December 31, 2024, the first payment of $20,000 was received and paid to the researcher. On the books of the Cancer Research Center, record the pledge in January, assuming the appropriate discount rate is 5 percent on an annual basis. The appropriate present value annuity factor is 4.3295. Record the increase in the present value as of December 31. Record the receipt of the first $20,000 on December 31 and the payment to the researcher. Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.
During the current year, a voluntary health and welfare organization receives $800,000 in unrestricted pledges. Of this amount, $300,000 has been designated by donors for use next year to support operations in the pharmacy. what amount of unrestricted support should the organizations recognize in its current-year financial statements? A.) $800,000 B.) $700,000 C.) $500,000 D.) $400,000
The City of Matlock issues $20,000,000 face value of general obligation bonds for $19,920,000. The bonds will be used for the construction of new streets and sidewalks to make downtown more walkable. The City incurred $100,000 in bond issue costs. What is the amount of expenditures that the City report in its Capital Projects Fund? $108,000 $100,000 $8,000 $0
Residents of the town of Sunny View, Arizona authorized a $5,000,000 renovation to theirhistoric town hall on November 15, 2022. Financing for the project consists of $2,500,000 froma 5 percent serial bond issue, $1,500,000 from a state grant, and $1,000,000 from the GeneralFund. Debt service for the serial bonds will be provided by a one-quarter-cent city sales taximposed on every dollar of sales in the city. Required: Complete the necessary journal entries to record the related transactions in the town's capitalprojects fund, debt service fund, and governmental activities at the government-wide level. Youmay ignore entries in the General Fund. The town has a calendar year-end. n. The sales tax collections for debt service amounted to $250,000. o. Central Paving and Construction gave a final billing to the town for $2,000,000. Upon last inspection by the Public Works Department, a leak was discovered in the roof.p. Public works employees installed a new sidewalk and landscaping at a…