ACCT. FOR GOV.&NONPROF. ENTITIES>CUSTOM
18th Edition
ISBN: 9781307515596
Author: RECK
Publisher: MCG/CREATE
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Textbook Question
Chapter 7, Problem 12C
Internal Service Fund Reporting. (LO7-2) Financial statements for the Building Maintenance Fund, an internal service fund of Coastal City, are reproduced here. No further information about the nature or purposes of this fund is given in the annual report.
Required
- a. Assuming that the Building Maintenance Fund is an internal service fund, discuss whether the financial information is presented in accordance with GASB standards.
- b. If you were the manager of a city department that uses the services of the Building Maintenance Fund, what would you want to know in addition to the information disclosed in the financial statements?
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Multiple Choice
Choice A
The capital projects fund of Plant City completed construction of a new building. The building account should be reported in the:
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II. general fund balance sheet.
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B) Il only.
C) I only.
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The City of Grinders Switch maintains its books in a manner that facilitates the preparation of fund accounting statements and
uses worksheet adjustments to prepare government-wide statements.
1. General fixed assets as of the beginning of the year, which had not been recorded, were as follows:
Land
Buildings
Improvements Other Than Buildings
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$ 7,700,000
33,398,400
14,839,400
11,569,000
25,333,000
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remainder was for improvements other than buildings.
3. The capital outlay expenditures outlined in (2) were completed at the end of the year (and will begin to be depreciated next
year). For purposes of financial statement presentation, all capital assets are depreciated using the straight-line method, with
no estimated salvage value. Estimated lives are as follows: buildings, 40 years; improvements other than…
Chapter 7 Solutions
ACCT. FOR GOV.&NONPROF. ENTITIES>CUSTOM
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