I AM NEEDING HELP WITH UNDERSTANDING HOW TO ANSWER THESE QUESTIONS. THE CLASS I AM TAKING IS GOVERNMENTAL AND NONPROFIT ACCOUTNING #2: Transaction Analysis a Analyze the effects of the following transactions on the accounting equations (Refer to pg 47) of the various funds and non-fund accounts of an SLG. Identify the Fund by name (GF, SRF, EF, etc, not by fund category - governmental, proprietary, etc.), the $ amount and the effect (use + /? or write increase /decrease. Only put the accounting equation items affected. For example, if CA and FB balance are affected don?t show other items in the equation or give a written explanation. b. Identify the operating statement by name, show where the item would be shown on the statement (expenditures, expenses, OFS, revenues, etc.), and the $ amount (for example, statement of revenues, expenditures and changes in FB - expenditures ? capital outlay $14,000). If there is no effect on the operating statement state that in your response (fund or non-fund). Do not give me info on another statement; it?s not relevant. Good format is required ? I have to be able to understand your answer. 1. A government issued $10 million of bonds to finance construction of a plant expansion for its Water and Sewer Enterprise Fund's water treatment plant. The 20-year bonds bear interest of 10%, payable semiannually each March 31 and September 30. The bonds were issued at par on April 1, 20X1. The September payment was made as scheduled. 2. A government issued $5 million of general obligation bonds to finance construction of an addition to its courthouse. The 10-year bonds pay interest of 10%, payable semiannually each March 31 and September 30. The bonds were issued at par on April 1, 20X1. The September payment was made as scheduled from the appropriate fund. 3. A government purchased a truck at a cost of $45,000 for a general government department. The truck was paid for from unrestricted resources. 4. A government paid $200,000 of its general revenues from its unrestricted fund to the fund to be used to service its outstanding general government bonds. 5. A government paid general government bond principal ($500,000) and interest ($1,000,000) when it was due. Resources for the payment were available in the appropriate fund. 6. A government paid principal ($50,000) and interest ($3,000) on a 6-month note that had been issued to provide for a temporary shortfall in General Fund cash. 7. A government was billed $2,000,000 by a contractor for work performed on a major general government capital project during the year. The government paid the contractor all but 10% of the amount billed. The project is not complete at year end. 8. Salaries for general government employees that were incurred but not paid as of year end were $50,000. 9. A government completed a major general government capital project during the year. The $500,000 of net assets remaining in the construction fund after payment of all project liabilities was paid over to the fund that is to be used to pay the principal and interest on the construction bonds. 10. The long-term liability for general government claims and judgments increased by $200,000 during the year. #3 (Nongovernment, Not-for-Profit Entries) Prepare the journal entries required to record the following transactions of a nongovernment, not-for-profit organization. 1. Received a contribution of stock to establish an endowment fund. The income from the endowment is unrestricted. The donor had acquired the stock for $23,000 about 20 years earlier. Its estimated fair value when donated was $250,000. 2. Pledges receivable at year end were $100,000, all from pledges received during the year. The pledges are unrestricted and 5% percent of the pledges are estimated to be uncollectible. For questions 3-5, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are met when the capital item is purchased. 3. A cash gift of $200,000 was received restricted for the purchase of equipment. 4. Equipment of $80,000 was purchased from the gift restricted for this purpose. 5. Deprecation expense for the year on the equipment purchased is $10,000. For questions 6-8, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are not met when the capital item is purchased. 6. A cash gift of $200,000 was received restricted for the purchase of equipment. 7. Equipment of $80,000 was purchased from the gift restricted for this purpose. 8. Deprecation expense for the year on the equipment purchased is $10,000.
Paper#11296 | Written in 18-Jul-2015Price : $25