Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 4, Problem 25EP
The following transactions affected various funds and activities of the Town of Big Springs.
- 1. The Fine Department, a governmental activity accounted for within the General Fund, purchased $100,000 of water from the Water Utility Fund, an enterprise fund.
- 2. A special revenue fund was awarded a $250,000 reimbursement grant. The General Fund advances $50,000 to the special revenue fund to cover initial costs associated with the grant’s purpose.
- 3. The General Fund transferred its annual contribution of $100,000 to the debt service fund for interest and principal on general obligation bonds due during the year.
- 4. The $5,000 balance in the capital projects fund at the completion of construction of a new Town Hall was transferred to the General Fund.
- 5. The General Fund made a long-term loan in the amount of $50,000 to the Central Stores Fund, an internal service fund that services town departments.
Required
- a. Make the required journal entries in the general journal of the General Fund and any other fund(s) affected by the interfund transactions described. Also make entries in the governmental activities journal as needed. Do not make entries in the subsidiary ledgers.
- b. Why is it unnecessary to make entries in a business-type activities journal for any transaction(s) affecting enterprise funds?
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Students have asked these similar questions
The following transactions affected various funds and activities of the City of Seham.
1. The Fire Department, a governmental activity, purchased OMR120,000 of water from the Water Utility Fund, a business-type activity.
2. The Municipal Golf Course, an enterprise fund, reimbursed the General Fund OMR1,300 for office supplies that the General Fund had purchased on its behalf and that were used in the course of the fiscal year.
3. The General Fund made a long-term loan in the amount of OMR80,000 to the Central Stores Fund, an internal service fund that services city departments.
4. The General Fund paid its annual contribution of OMR100,000 to the debt service fund for interest and principal on general obligation bonds due during the year.
Required:
Make the required journal entries in the general journal of the General Fund and any other fund(s) affected by the inter-fund transactions described. Also make entries in the governmental activities journal for any transaction(s) affecting a…
For each of the following events or transactions, prepare the necessacry journal entries and identify the fund or funds that will be affected.
1. A governmental unit collects fees totaling $4,500 at the municipal pool. The fees are charged to recover costs of pool operation and maintenance
2. A county government that serves as a tax collection agency for all towns and cities located within the county collects county sales taxes totaling $125,000 for the month.
3. A $1,000,000 bond offering was issued, with a premium of $50,000, to subsidize the construction of a city visitor center.
4. A town receives a donation of $50,000 in bonds. The bonds should be held indefinitely, but bond income is to be donated to the local zoo. The zoo is associated with the town.
5. A central printing shop is established with a $150,000 nonreciprocal transfer from the general fund.
6. A $1,000,000 revenue bond offering was issued at par by a fund that provides water and sewer services to…
Lincoln County's General Fund had two interfund transactions:
1. The general fund paid $225,000 to the housinhg and urban development fund, a special
revenue fund that is supported by grantsfrom the federal government on a cost reimbersment
basis. The amount is to be reoaid to the general fund as grant proceeds are received from the
federal government.
2. The general fund paid $162,000 to the tourism fund, a special revenue fund that is
supported by hotel and restaurant taxes. The amount is intended to supplement the taxes
raised, and there is no expectation that it will be repaid to the general fund.
Required:
Prepare the journal entriess in the general fund and affected special revenue funds for the
interfund transactions above. Describe the effect of these transactions on the fund balance of
the general fund and special revenue funds.
Chapter 4 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 4 - Last month a local government collected property...Ch. 4 - When preparing the statement or schedule of...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - If the General Fund of a certain city needs...Ch. 4 - Prob. 6QCh. 4 - Explain why some governments may account for...Ch. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - A government reports Deferred Inflows of...Ch. 4 - Prob. 13CCh. 4 - Prob. 15CCh. 4 - Choose the best answer. When equipment is...Ch. 4 - Prob. 17.2EPCh. 4 - Goods for which a purchase order had been placed...Ch. 4 - Prob. 17.4EPCh. 4 - Garden City has calculated that General Fund...Ch. 4 - Prob. 17.6EPCh. 4 - Prob. 17.7EPCh. 4 - Prob. 17.8EPCh. 4 - Carroll City levies 200,000 of property taxes for...Ch. 4 - Prob. 17.10EPCh. 4 - During the current year, the City of Hickory Hills...Ch. 4 - On July 1, 2020, the beginning of its fiscal year,...Ch. 4 - Prob. 20EPCh. 4 - Prob. 21EPCh. 4 - At the end of the current fiscal year, the City of...Ch. 4 - The City of Waterville applied for a grant from...Ch. 4 - The following transactions occurred during the...Ch. 4 - The following transactions affected various funds...Ch. 4 - The following events and transactions relate to...Ch. 4 - The City of Castletons General Fund had the...Ch. 4 - Prob. 28EP
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