The City of Southern Pines, during the year, incurred expenditures for capital outlays amounting to $22,500,000.Depreciation incurred for the year was calculated to be $1,500,000. (2 entries - 2 points).1☑ Ff▾ A BIIIIIII The City of Southern Pines maintains its books so as to prepare fund accounting statements and prepares worksheetadjustments in order to prepare government-wide financial statements. You are to prepare, in journal form,worksheet adjustments for each of the following situations. Use the account titles presented during the first 4weeks where appropriate. Use the account title referred to in the question for all other entries (generalobligation bonds = Bonds Payable).

Worksheet Adjustments for City of Southern Pines (Government-Wide Basis)Scenario 1: Recording…

Answered: The City of Southern Pines, during the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Johnson City has the following activity associated with capital assets that are related to governmental activities for the fiscal year ended June 30, 2022: Beginning capital assets balance ? Purchases of capital assets $225,000 Historical cost of capital assets sold $85,000 Ending capital assets balance $1,190,000 In addition, accumulated depreciation for these capital assets had the following activity: Beginning balance $249,000 Depreciation expense $82,000 Accumulated depreciation for assets sold? Ending balance $300,000 Finally, the proceeds associated with capital assets sold were $60,000. Depreciation expense $82,000 Accumulated depreciation for assets sold? Ending balance $300,000 Finally, the proceeds associated with capital assets sold were $60,000. Using this information, prepare the four necessary journal entries (beginning, purchases, sales, and depreciation) to adjust the government fund financial statements to the government-wide statements.
13 The City of Brown Creek constructed a new storage facility using the city's own public works employees. Construction costs were incurred in the amount of $900,000, plus $25,000 in interest on short-term notes used to finance construction. What amount should be capitalized in the government-wide statements? Multiple Choice O $900,000. $925,000. $875,000. $0.
For the following transactions, prepare the entries that would be recorded in the general fixed assets account group for the city of Evert.a. The city purchased property costing $1,300,000, with three-fourths of the cost allocated to a building.b. A mansion belonging to the great-granddaughter of the city’s founder was donated to the city. The land cost the original owner $600, and the house was built for an additional $50,000. At the time of donation, the property had an estimated fair value of $550,000, of which $330,000 was allocable to the land. The property was accepted and is to be used as a park and a museum.c. A central fire station, financed by general obligation bonds, was two-thirds complete at yearend with costs to date of $800,000 that were recorded in the capital project fund.d. A new fire engine was purchased for $165,000. The city traded a used fire engine originally purchased for $100,000. The trade-in value was $25,000. Both engines were purchased from general…
On January 2, Basketville City purchased equipment with a useful life of three years to be used by its capital project fund. Which of the following is the correct treatment for the asset? A.) Capitalize; depreciation is optional B.) Capitalize; depreciation is required C.) Capitalize; depreciation is not permitted. D.) Record the purchase of the equipment as an expenditure
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. 990,000
4. The city of Alpine incurred the following costs during the year in its property tax collection department: Purchase of computer equipment Salaries and wages Purchase of electricity from the city-owned electric utility Purchase of supplies, all of which were used during the year $ 10,000 $400,000 a. $400,000 b. $410,000 c. $450,000 d. $460,000 $ 40,000 $ 10,000 As a consequence of these transactions, the amount that Alpine should report as expenditures in its gen- eral fund is 4000
At the beginning of the current year, Peace Company purchased a machine for P 7,000,000 and received a government grant of P 1,000,000 toward the capital cost. The machine is to be depreciated on a straight line basis over 5 years and estimated to have a residual value of P 500,000 at the end of this period 1. The journal entry to record the government grant as a deferred revenue: 2. The journal entry to recognize income from government grant:
Required information [The following information applies to the questions displayed below.] For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000, total liabilities of $100,000, net assets without donor restriction of $400,000, and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and $80,000 in net assets that must be permanently held. Total…
10. An entity had the following loans outstanding during 20X1 and 20X2.Specific construction loan, 2,000,000 - 15%General loan, 15,000,000 - 12%The entity began the self-construction of a new building on January 1, 20X1 and the building was completed on December 31, 20X2. The following expenditures were made during 20X1 and 20X2: January 1, 20X1 - 2,000,000; July 1, 20X1 - 4,000,000; November 1, 20X1 - 3,000,000; July 1, 20X2 - 1,000,000. What is the cost of the building?
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The following events take place: 1. 2. 3. Edward Lewis died and left 100 acres of undeveloped land to the city for a future park. He acquired the land at $100 an acre, but at the date of his death, the land was appraised at $7,300 an acre. The city authorized the transfer of $100,000 of general revenues and the issuance of $970,000 in general obligation bonds to construct improvements on the donated land. The bonds were sold at par. The improvements were completed at a cost of $1,070,000, and the operation of the park was turned over to the City Parks Department. Prepare entries in general journal form to record these transactions in the proper fund(s). Designate the fund in which each transaction is recorded. If the transaction did not result in a journal entry to a government fund, record the journal entry needed to reflect the information in the government-wide Statement of Net Position. (Credit account titles are automatically indented when amount is entered. Do not indent…
Using the following information, determine the net operating income (NOI) for the first year of operations of the subject property using "above-line" treatment of capital expenditures. Subject Property Number of apartments Market rent (per month) Vacancy and collection losses Operating expenses Capital expenditures O $135,000 $162,000 $137.700 $153,900 15 1000 10% of PGI 5% of EGI 10% of EGI

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