ACCT GOV.+NFP ENTITIES LOOSELEAF W/CONN.
18th Edition
ISBN: 9781260949766
Author: RECK
Publisher: MCG
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Textbook Question
Chapter 4, Problem 18EP
During the current year, the City of Hickory Hills issued purchase orders to various vendors in the amounts shown for the following functions of the city:
All goods ordered during the year were received at the following actual costs:
Required
- a. Prepare a summary
journal entry in the General Fund general journal to record the issuance of purchase orders. In addition, show subsidiary detail for the Encumbrances ledger. - b. Prepare summary journal entries in the General Fund general journal to record the receipt of and payment for goods during the year. In addition, show subsidiary detail for the Encumbrances and Expenditures ledgers.
- c. Does the fact that the actual cost of goods received during the year exceeded the estimated cost when ordered suggest a budgetary or management problem?
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Consolidation Working Paper One Year after Acquisition, Bargain Purchase
On January 1, 2022, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $1.8 billion cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $150 million at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon
(in millions)
Cash and receivables
Inventory
Equity method investments
Investment in Saxon
Dr(Cr)
Paxon Saxon
$3,225 $855
2,260
530
December 31, 2022, appear below:
2,441.5
Land
650
300
Buildings and equipment, net
3,600 1,150
Current liabilities
(2,020)
(1,200)
Long-term debt
(5,000) (450)
(500)
(50)
Common stock, par value
Additional paid-in capital
Retained earnings, January 1
Dividends
Sales revenue
(1,200) (200)
(2,410) (600)
500
250
(30,000) (12,000)
Equity in net income of Saxon
(616.5)
Gain on acquisition
(250)
Gain on sale of securities
(150)
Cost of…
KIARA LIMITED
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:
ASSETS
Property, plant and equipment (cost)
Accumulated depreciation
Long-term investments
Inventory
Accounts receivable
Company tax paid in advance
Bank
EQUITY AND LIABILITIES
2024
2023
R
R
2 490 000
1 620 000
(630 000)
660 000
1 050 000
1 230 000
30 000
(480 000)
450 000
1 290 000
900 000
0
750 000
660 000
5 580 000
4 440 000
Ordinary share capital
2 700 000
2 000 000
Retained income
1 500 000
1 158 000
Long-term loan from Kip Bank (15%)
900 000
1 000 000
Accounts payable
480 000
228 000
Company tax payable
0
54 000
5 580 000
4 440 000
ADDITIONAL INFORMATION
All purchases and sales are on credit.
Interim dividends paid during the year amounted to R150 750.
Credit terms of 3/10 net 60 days are granted by creditors.
Accounting Question
Chapter 4 Solutions
ACCT GOV.+NFP ENTITIES LOOSELEAF W/CONN.
Ch. 4 - Last month a local government collected property...Ch. 4 - When preparing the statement or schedule of...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - If the General Fund of a certain city needs...Ch. 4 - Prob. 6QCh. 4 - Explain why some governments may account for...Ch. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - A government reports Deferred Inflows of...Ch. 4 - Prob. 13CCh. 4 - Prob. 15CCh. 4 - Choose the best answer. When equipment is...Ch. 4 - Prob. 17.2EPCh. 4 - Goods for which a purchase order had been placed...Ch. 4 - Prob. 17.4EPCh. 4 - Garden City has calculated that General Fund...Ch. 4 - Prob. 17.6EPCh. 4 - Prob. 17.7EPCh. 4 - Prob. 17.8EPCh. 4 - Carroll City levies 200,000 of property taxes for...Ch. 4 - Prob. 17.10EPCh. 4 - During the current year, the City of Hickory Hills...Ch. 4 - On July 1, 2020, the beginning of its fiscal year,...Ch. 4 - Prob. 20EPCh. 4 - Prob. 21EPCh. 4 - At the end of the current fiscal year, the City of...Ch. 4 - The City of Waterville applied for a grant from...Ch. 4 - The following transactions occurred during the...Ch. 4 - The following transactions affected various funds...Ch. 4 - The following events and transactions relate to...Ch. 4 - The City of Castletons General Fund had the...Ch. 4 - Prob. 28EP
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