ACCT. FOR GOV.&NONPROF. ENTITIES>CUSTOM
18th Edition
ISBN: 9781307515596
Author: RECK
Publisher: MCG/CREATE
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Chapter 7, Problem 17.11EP
The City of Tutland issued $10 million, 6 percent, 10-year bonds at 101 to finance refurbishment of its water utility fund equipment. The bond issuance is recorded in the water utility enterprise fund as
- a. Other financing sources of $10.1 million.
- b. Revenues of $10.1 million.
- c. Bonds payable of $10.1 million.
- d. Bonds payable of $10 million and premium on bonds payable of $100,000.
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5.
2. The City of Paradise issued Bonds of $1,250,000 for the Construction of a City Hall. The City Hall’s bonds are sold at a premium of $150,000; therefore the estimated cost of the Hall is $1,100,000. Required:
a. Prepare general journal entries to record the issue of the bonds by General Fund.
b. Prepare general journal entries to transfer the premium amount to the debt service fund.
Falmouth City owns and operates a mini-bus system which it accounts for in an enterprise fund. Prepare journal entries to record the following transactions, which occurred in a recent year.
a) The mini-bus system issued $5 million of 8 percent revenue bonds at par and used the proceeds to acquire new mini-buses.
b) As required by the bond covenant, the system set aside 1 percent of the gross bond proceeds for repair contingencies.
c) The system accrued 6 months interest on the revenue bonds at year-end.
d) The system incurred $30,000 of repair costs and paid for them with cash set aside for repair contingencies
Local government-issued bonds to the value of RO 500,000 to finance its general operating expenditure at 10 % premium. Which one of the following journal entries records this transaction in the general fund?
a.
None of the options
b.
Bank Account Dr. 550,000, Proceeds from issue of bonds Account Cr. 500,000, Premium on issue of bonds Account Dr. 50,000
c.
Bank Account Dr. 550,000, Cash Account Dr. 550,000
d.
Bank Account Dr. 550,000, Proceeds from issue of bonds Account Cr. 500,000, Premium on issue of bonds Account Cr. 50,000
Chapter 7 Solutions
ACCT. FOR GOV.&NONPROF. ENTITIES>CUSTOM
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. 11QCh. 7 - Internal Service Fund Reporting. (LO7-2) Financial...Ch. 7 - Proprietary Fund Operating Statement. (LO7-1)...Ch. 7 - Enterprise Fund Golf Course Management. (LO7-1)...Ch. 7 - Prob. 17.1EPCh. 7 - Which of the following would most likely be...Ch. 7 - Under GASB standards, the City of Parkview is...Ch. 7 - Prob. 17.4EPCh. 7 - Which of the following events would generally be...Ch. 7 - Proprietary funds a. Are permitted to integrate...Ch. 7 - Prob. 17.7EPCh. 7 - Prob. 17.8EPCh. 7 - Prob. 17.9EPCh. 7 - Prob. 17.10EPCh. 7 - The City of Tutland issued 10 million, 6 percent,...Ch. 7 - The City of Tutland issued 10 million, 6 percent,...Ch. 7 - Prob. 18EPCh. 7 - Prob. 19EPCh. 7 - Central Garage Internal Service Fund. (LO7-2) The...Ch. 7 - Internal Service Fund Statement of Cash Flows....Ch. 7 - Tribute Aquatic Center Enterprise Fund. (LO7-5)...Ch. 7 - Net Position Classifications. (LO7-5) During the...Ch. 7 - Central Station Enterprise Fund. (LO7-5) The Town...Ch. 7 - Enterprise Fund Journal Entries and Financial...Ch. 7 - Net Position Classifications. (LO7-5) The Village...Ch. 7 - Enterprise Fund Statement of Cash Flows. (LO7-5)...Ch. 7 - AppendixSolid Waste Enterprise Fund. (LO7-6) Brown...
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