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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
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Question
Chapter 9, Problem 18EP
To determine
Prepare necessary
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Explanation of Solution
Government-wide financial statement: This statement provides a combined summary of the net position and the changes in the net position of the government.
Fund financial statement: The fund financial statement provides detail financial information on the governmental, proprietary and fiduciary activities of the primary government.
Prepare necessary journal entries to properly record each transaction for the fiscal year ended December 31, 2017.
Transaction Number | Fund or Activity | Account Title | Debit ($) | Credit ($) |
1. | GF | Estimated Revenues | 2,000,000 | |
Appropriations | 1,990,000 | |||
Budgetary fund balance | 10,000 | |||
(To record the general fund receipt) | ||||
2. | GF | Taxes receivable-current | 1,940,000 | |
Allowance for uncollectible current taxes | 9,000 | |||
Revenues | 1,931,000 | |||
(To record the property tax levy and uncollectible portion) | ||||
GA | Taxes receivable- Current | 1,940,000 | ||
Allowance for uncollectible current taxes | 9,000 | |||
General revenues-property taxes | 1,931,000 | |||
(To record the amount of property tax and amount of general revenue) | ||||
3. | GF | Interfund transfers out | 25,000 | |
Cash | 25,000 | |||
(To record the general fund transfer) | ||||
ISF | Cash | 25,000 | ||
Equipment | 300,000 | |||
65,000 | ||||
Interfund Transfer In | 260,000 | |||
(To record the inter-fund Transfer In) | ||||
4. | PF | Investment –marketable securities | 800,000 | |
Revenues-contributions for endowment | 800,000 | |||
(To record the donated marketable security) | ||||
Cash | 40,000 | |||
Revenues –Investment earnings | 40,000 | |||
(To record the revenue at the end) | ||||
PF | Interfund Transfer Out | 40,000 | ||
Cash | 40,000 | |||
(To record the Inter-fund Transfer Out) | ||||
SRF | Cash | 40,000 | ||
Interfund Transfers In | 40,000 | |||
(To record the Inter-fund Transfer In) | ||||
GA | Investment –marketable securities | 800,000 | ||
General revenues-contributions for endowment | 800,000 | |||
(To record marketable securities and general revenues) | ||||
Cash | 40,000 | |||
Programs revenues-culture and recreation- operating grants and contributions | 40,000 | |||
(To record the donation made on culture and creation) | ||||
5. | EF | Due from other funds | 125,000 | |
Charges for services | 125,000 | |||
(To record the general fund for sewage and water services) | ||||
Cash | 124,000 | |||
Due from other funds | 124,000 | |||
(To record the amount paid) | ||||
GF | Expenditures | 125,000 | ||
Due from other funds | 125,000 | |||
(To record the actual due amount) | ||||
Due from other funds | 124,000 | |||
Cash | 124,000 | |||
(To record the funds due to other funds) | ||||
GA | Expense-general government | 125,000 | ||
Internal balances | 125,000 | |||
(To record the internal balance) | ||||
Internal balances | 124,000 | |||
Cash | 124,000 | |||
(To record the cash settlement) | ||||
6. | ISF & GA | Inventory of supplies | 4,500 | |
Cash | 4,500 | |||
(To record the purchase of central duplicating fund) | ||||
7. | GF | Cash | 1,988,000 | |
Taxes receivable-current | 1,925,000 | |||
Revenues | 63,000 | |||
(To record the cash collection) | ||||
GA | Cash | 1,988,000 | ||
Taxes receivable-current | 1,925,000 | |||
Program revenue-general government-charges for services | 63,000 | |||
(To record the cash collection) | ||||
8. | ISF | Due from other funds | 23,800 | |
Billings to departments | 23,800 | |||
(To record the total funds due from department) | ||||
EF | Expense-administrative | 8,100 | ||
Due to other funds | 8,100 | |||
(To record the City’s utility fund) | ||||
GF | Expenditures-General government | 15,700 | ||
Due to other funds | 15,700 | |||
(To record the internal service fund) | ||||
GA | Internal balances | 8,100 | ||
Program revenues-general government-charges for services | 8,100 | |||
(To record the government charges for service) | ||||
9. | CPF | Cash | 5,000,000 | |
Proceeds of bonds | 5,000,000 | |||
(To record the sale of bond) | ||||
Encumbrance | 4,500,000 | |||
Encumbrances outstanding | 4,500,000 | |||
(To record the amount of contract) | ||||
GA | Cash | 5,000,000 | ||
Bond payable | 5,000,000 | |||
(To record the cash receipt on bond) | ||||
10. | GF | Encumbrance | 32,000 | |
Encumbrances outstanding | 32,000 | |||
(To record the issue of purchase order) | ||||
Encumbrance Outstanding | 32,000 | |||
Expenditures | 31,900 | |||
Encumbrances | 32,000 | |||
Cash | 31,900 | |||
(To record the cash payment of purchase) | ||||
GA | Equipment | 31,900 | ||
Cash | 31,900 | |||
(To record the purchase of equipment on cash) |
(Table 1)
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Chapter 9 Solutions
Accounting for Governmental & Nonprofit Entities
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Explain the difference between a blended and a...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Give examples of items (transactions) that would...Ch. 9 - Prob. 9QCh. 9 - Prob. 10Q
Ch. 9 - Prob. 11CCh. 9 - Prob. 12CCh. 9 - Prob. 13CCh. 9 - Prob. 16.1EPCh. 9 - Interim government financial reports a. Are not...Ch. 9 - The comprehensive annual financial report (CAFR)...Ch. 9 - Prob. 16.4EPCh. 9 - The city council of Lake Jefferson wants to...Ch. 9 - Prob. 16.6EPCh. 9 - Prob. 16.7EPCh. 9 - Prob. 16.8EPCh. 9 - A positive unassigned fund balance can be found in...Ch. 9 - Prob. 16.10EPCh. 9 - Prob. 17EPCh. 9 - Prob. 18EPCh. 9 - Prob. 19EPCh. 9 - Prob. 20EPCh. 9 - Prob. 21EPCh. 9 - Prob. 22EPCh. 9 - Prob. 23EPCh. 9 - Prob. 24EP
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