Accounting for Governmental & Nonprofit Entities
17th Edition
ISBN: 9780078025822
Author: Jacqueline L. Reck James E. Rooks Distinguished Professor, Suzanne Lowensohn, Earl R Wilson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 16.9EP
To determine
Identify the correct answer by solving the amount of net investment in capital assets.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Prepare journal entries to record the following events using the general fund and the general fixed assets account group: a. The general fund vouchered the purchase of trucks for $80,000. The purchase had been encumbered earlier in the year at $75,000. b. Several years ago, equipment costing $15,000 was acquired with general fund revenues. It was sold for $6,000, with proceeds belonging to the general fund. c. Early in the year, a citizen donated to the city land appraised at $100,000. She submitted plans for a new library and agreed to cover the total cost of construction, paying the company directly as work proceeded. At year-end, the building was two-thirds finished, with costs to date of $300,000. The expenditures are recorded in a capital projects fund. d. A snow plow was purchased with general fund cash for $92,000, which represented a cost of $110,000 less trade-in of $18,000 for an old snow plow originally purchased for $66,000 from special revenue funds. As an emergency…
A. Prepare CORIS RA Statement of Cash Flow for the year ended December 31, 2020
B. Prepare CORIS RA Statement of Financial Performance for the year ended December 31, 2020
Prepare CORIS RA Statement of Cash Flow for the year ended December 31, 2020
Prepare CORIS RA Statement of Financial Performance for the year ended December 31, 2020
Chapter 7 Solutions
Accounting for Governmental & Nonprofit Entities
Ch. 7 - Prob. 1QCh. 7 - Explain the reporting requirements for internal...Ch. 7 - A member of the city commission insists that the...Ch. 7 - Prob. 4QCh. 7 - What is the purpose of the Restricted Assets...Ch. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - When do GASB standards require interfund...Ch. 7 - Prob. 9QCh. 7 - What is meant by segment information for...
Ch. 7 - Prob. 11CCh. 7 - Prob. 12CCh. 7 - Enterprise Fund Golf Course Management. (LO7-1)...Ch. 7 - Prob. 16.1EPCh. 7 - Which of the following would most likely be...Ch. 7 - Under GASB standards, the City of Parkview is...Ch. 7 - Prob. 16.4EPCh. 7 - Which of the following events would generally be...Ch. 7 - Prob. 16.6EPCh. 7 - Prob. 16.7EPCh. 7 - Prob. 16.8EPCh. 7 - Prob. 16.9EPCh. 7 - Prob. 16.10EPCh. 7 - Prob. 17EPCh. 7 - Prob. 18EPCh. 7 - Prob. 19EPCh. 7 - Prob. 20EPCh. 7 - Prob. 21EPCh. 7 - Prob. 22EPCh. 7 - Prob. 23EPCh. 7 - Prob. 24EP
Knowledge Booster
Similar questions
- A. Prepare CORIS RA Statement of Cash Flow for the year ended December 31, 2020arrow_forwardPART B Assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for initial year). Nivea-Corporation invested the amount in a project and generated the following sequence of cash flows over six years: Year Cash Flow ($ million) 0 -59.00 1 4.00 2 5.00 3 6.00 4 7.33 5 8.00 6 8.25 Calculate the Payback period Calculate the Net Present Value (NPV) and the Profitability Index (PI) over the six years. Assume any discount rate This project does not end after the sixth year but instead will generate cash flows far into the future. Estimate the project’s terminal value, assuming that cash flows after year 6 continue at $8.25 per year perpetuity and then recalculate the investment’s NPV. Calculate the terminal value assuming that cash flows after the sixth year grow at 2% annually in perpetuity, and then recalculate thearrow_forwardUse the following information for the next two questions: On January 1, 20x1, Entity A had the following general borrowings. A part of the proceeds was used to finance the construction of a qualifying asset: Principal 12% bank loan (1.5 years) ₱ 1,000,000 10% bank loan (3-year) 8,000,000 Expenditures made on the qualifying asset were as follows: Jan. 1 ₱ 5,000,000 March 1 4,000,000 August 31 3,000,000 December 1 2,000,000 Construction was completed on December 31, 20x1. How much borrowing costs are capitalized to the cost of the constructed qualifying asset? 1,045,000 c. 1,026,667 971,111 d. 920,000 How much is the cost of the qualifying asset on initial recognition? 13,010,000 c. 14,920,000 15,045,000 d. 14,971,111arrow_forward
- Financing for the renovation of Fir City's municipal park, begun and completed during Year 1, came from the following sources: Grant from state government $400,000 Proceeds from general obligation bond issue 500,000 Transfer from Fir's general fund 100,000 In its Year 1 capital projects fund operating statement, Fir should report these amounts as:) Revenues Other Financing Sources A) Operating cash flow only. B) Investing cash flow only C) Operating or investing cash flow. D) Operating or financing cash flow.arrow_forwardThe fund balance in the beginning of the year is $300,000, revenues of the year is 1,595,000 and the expenditures are 1,587,000. What is the end of year fund balance? a. $ 308,000 O b. $ 292,000 c. $ 229,000 d. $ 380,000arrow_forwardUse the following information for the next two questions: On January 1, 20x1, Entity A had the following general borrowings. A part of the proceeds was used to finance the construction of a qualifying asset: Principal P1,000,000 12% bank loan (1.5 years) 10% bank loan (3-year) P8,000,000 Expenditures made on the qualifying asset were as follows: Jan.1 P 5,000,000 4,000,000 March 1 August 31 December 1 3,000,000 2,000,000 Construction was completed on December 31, 20x1. .How much borrowing costs are capitalized to the cost of the constructed qualifying asset?arrow_forward
- On January 1, 20x1, Entity A started the construction of a qualifying asset. The qualifying assetis financed through general borrowings. The average expenditures during the year amounted to₱9,500,000. The capitalization rate is 11%. The actual borrowing costs incurred during the periodwere ₱1,990,000. How much are the borrowing costs eligible for capitalization? a. 1,990,000 b. 1,045,000 c. 1,090,000 d. 990,000arrow_forwardA state constructs an office building. The construction is financed with: (1) a transfer of $1 million from the General Fund; (2) a grant of $3 million from the federal government; (3) bond proceeds of $6 million; and (4) earnings of $100,000 from temporary investment of bond proceeds. All transactions occur in one year. How much should be reported as Revenues in the Capital Projects Fund? $100,000 $1,100,000 $3,100,000 $10,100,000arrow_forwardAn asset for drilling was purchased and place in service by a petroleum production company. It's initial investment is 60,000 and it has an estimated SV of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciation amount in the third year and the BV at the end of the 5th year of life by each of these methods;a. Straight line methodb. Sinking fund method at 5% per year c. Declining balance Methodd. Double declining balance Methode. Sum of the year's Digit methodarrow_forward
- 49) A Capital Projects Fund awards the construction of a building to a construction contractor at a contract cost of $1,000,000. What entry is prepared by the Capital Projects Fund? A) Debit Expenditures $1,000,000, Credit Liability $1,000,000 B) Debit Building $1,000,000, Credit Expenditures $1,000,000 C) Debit Other Financing Uses $1,000,000, Credit Expenditures $1,000,000 D) Debit Encumbrances $1,000,000, Credit Reserve for Encumbrances $1,000,000 50) Which statement below is incorrect with respect to the Government-wide financial statements? A) All governmental fund categories must convert to the modified accrual basis of accounting. B) It is necessary to eliminate interfund balances within the governmental funds. C) Capital lease liabilities associated with governmental funds must be included on the Government-wide financial statements. D) All fixed assets and long-term debt for governmental funds must be included on the Government-wide financial statements.arrow_forwardOn December 30, Billy's Boat Yard (BBY) had $90,000 of cash, $20,000 of liabilities, $30,000 of common stock, and $40,000 of unrestricted retained earnings. On December 31, BBY appropriated retained earnings in the amount of $18,000 for a future remodeling project. Required a. Record the December 31 appropriation in the following statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. b. Determine the amount of dividends that BBY can pay immediately after the December 31 appropriation. c. Determine the total amount of retained earnings immediately after the December 31 appropriation. d. Determine the total amount of cash immediately after the December 31 appropriation. Complete this question by entering your answers in the tabs below. Req A Req B to D Record the December 31 appropriation in the following statements model. In…arrow_forwardUse the following information for the next two questions: On January 1, 20x1, Entity A had the following general borrowings. A part of the proceeds was used to finance the construction of a qualifying asset: 12% bank loan (1.5 years) 10% bank loan (3-year) Principal ℗ 1,000,000 8,000,000 Expenditures made on the qualifying asset were as follows: Jan. 1 P 5,000,000 4,000,000 March 1 August 31 December 1 3,000,000 2,000,000 Construction was completed on December 31, 20x1. 20. How much borrowing costs are capitalized to the cost of the constructed qualifying asset? a. 1,045,000 c. 1,026,667 b. 971,111 d. 920,000 21. How much is the cost of the qualifying asset on initial recognition? a. 13,010,000 c. 14,920,000 b. 15,045,000 d. 14,971,111arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning