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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Chapter 6, Problem 8P
a.
To determine
Prepare general ledger closing entries:
b.
To determine
Prepare statement of revenue, expenses, and changes in fund balance for the year ended December 31st, 20X1:
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The City of Greystone maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations:
The City levied property taxes for the current fiscal year in the amount of $8,000,000. At year-end, $720,000 of the taxes had not been collected. It was estimated that $330,000 of that amount would be collected during the 60 days after the end of the fiscal year and that $360,000 would be collected after that time and the balance would be uncollectible. The City had recognized the maximum of property taxes allowable under modified accrual accounting.
$255,000 of property taxes had been deferred at the end of the previous year and was recognized under modified accrual as revenue in the current year.
In addition to the expenditures reported under modified accrual accounting, the city computed that an additional $104,000…
The City of Lexington is preparing its
government-wide financial statements from
its fund financial statements.
The City records Deferred Revenue with a
book value of $3,500 and Compensated
Absences of $2,000 (all numbers in $1,000s)
at the beginning of the year. During the year,
these accounts increased by $1,500 and
$900, respectively. What reconciliation entries
must the City include in its government-wide
financial statements relating to Deferred
Revenues and Compensated Absences?
Please show work so I can follow along to
learn. THANK YOU!
Reconciliation Spreadsheet
Description
Debit
Credit
Revenues
To record reconciliation entry for deferred revenue.
Compensated absence expense
To record reconciliation entry for compensated absences.
A city has a General Fund and an Enterprise Fund. During the final month of its fiscal year, the city used electricity of $1,000 with
$800 attributable to activities accounted for in the General Fund and $200 attributable to activities accounted for in an Enterprise
Fund. The city does not receive its electric bill from the utility until the third day of the first month of its next fiscal year. The city's
practice is to pay its bills within two weeks of their receipt.
What account(s) and amounts would be debited in the General Fund and Enterprise Fund, if any, to record the use of electricity at
its fiscal year-end?
Select one:
a. The General Fund would make no entry, and the Enterprise Fund would debit, Utilities expense, for $200.
b. Neither the General Fund nor the Enterprise Fund would make an entry at the city's fiscal year-end.
c. The General Fund would debit, Cash, for $800, and the Enterprise Fund would debit, Cash, for $200.
d. The General Fund would debit, Expenditures, for…
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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