Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Textbook Question
Chapter 6, Problem 3E
(Various Entries) Record the following transactions in General Ledger accounts of the General Fund of Fergieville.
- 1. Incurred salaries of $300,000, $280,000 of which was paid.
- 2. A long-term note ($400,000 face value) matured. The interest of $40,000 was paid but the principal was not.
- 3. Purchased computers with a cost of $45,000; $22,000 was paid; the balance is due and is expected to be paid at the end of the first quarter of the next fiscal year.
- 4. Purchased materials for cash, $19,000. Assume use of the purchases method of accounting.
- 5. Received bill from the water and sewer department for services, $7,500; $4,000 was paid.
- 6. Ordered, but have not yet received, materials costing $70,000.
- 7. Paid required annual contribution to pension plan, $250,000.
- 8. Determined that the Capital Projects Fund should be reimbursed $3,000 for wages that should have been charged to General Fund departments but were paid from the Capital Projects Fund.
- 9. Repaid a 6-month note (face value, $50,000) and interest on the note ($2,500).
- 10. Paid $75,000 to the Golf Course Enterprise Fund to cover its operating deficit for the year.
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During an accounting period, the following activities occurred in the general fund: $1,000 due from another fund was received. Expenditures of $5000 were paid. Revenues of $10,000 were received. Accounts payable of $2,000 was paid. Accounts receivable of $3,000 was collected. Cash at the beginning of the period was $5,000 and the fund balance at the beginning of the period was $25,000 (positive). Tara Co. owns an office building and leases the offices under a variety of rental agreements involving rent paid in advance monthly or annually. Not all tenants make timely payments of their rent. Tara's balance sheets contained the following data: 1989 1990 Rentals receivable $ 9,600…
Prepare journal entries to record each of these transactions in the general fund. Based on your entries, prepare a balance sheet and statement of revenues, expenditures, and changes in fund balance for the general fund.
The Authority issued $2.5 million in long-term bonds.
· The Authority purchased 4 acres of land for $500,000 in cash.
· It sold one of the 4 acres of land for $125,000 in cash.
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shak City creates a new internal service fund. To get the internal service fund started, the City's general fund loans $100,000 to the newly created internal service fund. What journal entry will be recorded in the general fund as a result of the transaction?
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Debit cash $100,000; credit due to internal service fund $100,000
Debit due from internal service fund $100,000; credit cash $100,000
Debit transfers in/out $100,000; credit cash $100,000
Debit cash $100,000; credit transfers in/out $100,000
Chapter 6 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 6 - Distinguish between an expenditure in the...Ch. 6 - Prob. 2QCh. 6 - On January 2, 20X1, materials costing 100 were...Ch. 6 - A city entered into a capital lease of equipment...Ch. 6 - Is a governments nonspendable fund balance in the...Ch. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - Prob. 9QCh. 6 - A government uses the purchases method to account...
Ch. 6 - Prob. 1ECh. 6 - Prob. 2.1ECh. 6 - Prob. 2.2ECh. 6 - An Expenditures account in a General Fund should...Ch. 6 - Both the periodic and perpetual inventory systems...Ch. 6 - Prob. 2.5ECh. 6 - Assume a governmental entity enters into a capital...Ch. 6 - Prob. 2.7ECh. 6 - Prob. 2.8ECh. 6 - (Various Entries) Record the following...Ch. 6 - (Capital Lease Entries) Record the following 20X8...Ch. 6 - Prob. 5ECh. 6 - (Purchases vs. Consumption Method) The city of...Ch. 6 - (Capital Outlay; InventoryPurchases Method) (a)...Ch. 6 - (Capital Outlay; InventoryConsumption Method) (a)...Ch. 6 - Record the following 20X9 transactions in the...Ch. 6 - Prob. 5PCh. 6 - (GL and SL EntriesErrors, Pensions, Changes,...Ch. 6 - Prob. 8PCh. 6 - Prob. 10PCh. 6 - Prob. 1CCh. 6 - Prob. 2CCh. 6 - Prob. 1CC
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