Question

In: Accounting

P. 8–1 Government‐wide statements are on a full accrual basis; fund statements are on a modified...

P. 8–1

Government‐wide statements are on a full accrual basis; fund statements are on a modified accrual basis.

The East Eanes School District engaged in or was affected by the following events and transactions during its fiscal year ending June 30, 2021.

  1. Teachers and other personnel earned $350,000 in vacations and other compensated absences that they did not take but for which they expect to be paid in the future.
  2. The district settled a suit brought by a student, agreeing to pay $3 million by December 31, 2022.
  3. The district issued $8 million in GO bonds to finance an addition to its high school. By year‐end, it had expended $1 million in construction costs.
  4. The district signed a one‐year (i.e., short‐term) lease for office space. Rent, which the county paid in its entirety, is $40,000 per year.
  5. It acquired school buses and other vehicles, financing them with an eight‐year lease. Annual lease payments are $140,000. Had the district purchased the equipment outright, the price would have been $869,371, reflecting an interest rate of 6 percent.
  6. The district transferred $500,000, representing the final year's principal payment, to a reserve fund required by the bond indenture.
  7. To smooth out cash flows, the district issued 90‐day tax anticipation notes of $950,000.
  8. The district paid teachers and other personnel $150,000 for compensated absences earned in previous years.

For each event, prepare the entries (as required) to record the transactions in the general fund or whatever other governmental fund seems most appropriate.

Prepare the entries that would be needed to reflect the transactions and events in the district's government‐wide statements.

Solutions

Expert Solution



Related Solutions

Why do goverments use modified accrual for general fund statements and full accrual for government wide...
Why do goverments use modified accrual for general fund statements and full accrual for government wide statements?
Explain how to convert fund specific financials on a modified accrual accounting basis to a full...
Explain how to convert fund specific financials on a modified accrual accounting basis to a full accrual basis.
From the perspective of a bureaucrat, which government accounting method (Cash Basis, Modified Accrual or Full...
From the perspective of a bureaucrat, which government accounting method (Cash Basis, Modified Accrual or Full Accrual) is more feasible for each revenue source? Explain your response. State Income Taxes   D. Motor Fuel Taxes          G. Gaming Fees (casinos) Public Utility Fees    E. Licenses and Fees          H. Block Grants Donations                 F. Sales Taxes                     I. Property Taxes
Option #1: Transactions for fund statements and government-wide statements At the beginning of the year, Robinson...
Option #1: Transactions for fund statements and government-wide statements At the beginning of the year, Robinson County acquired a new storage building under a capital lease agreement. An initial payment of $700,000 is made to start the lease with four subsequent payments for the same amount at the end of each year starting in late 20X7. The total lease payment amount for the duration of the lease is $3,500,000. The present value of the lease at the inception is $3,485,000,...
P. 6-8 Governments may report substantially different amounts of interest on their government-wide and fund financial...
P. 6-8 Governments may report substantially different amounts of interest on their government-wide and fund financial statements. Charter City issued $100 million of 6 percent, 20‐year general obligation bonds on January 1, 2017. The bonds were sold to yield 6.2 percent and hence were issued at a discount of $2.27 million (i.e., at a price of $97.73 million). Interest on the bonds is payable on July 1 and January 1 of each year. On July 1, 2017, and January 1,...
1-Discuss the differences between the fund financial statements and the government-wide financial statements. 2-Give an example...
1-Discuss the differences between the fund financial statements and the government-wide financial statements. 2-Give an example of a government’s Management’s Discussion and Analysis. Explain the basics that are covered in their Management’s Discussion and Analysis. 3-Barry City has a governmental fund that provides loans to commercial businesses operating in Jerome County (Barry City is within Jerome County). This year, Barry City made loans totaling $1,000,000. How should Barry City classify the disbursements of loans on the statement of cash flows?...
With regard to the government-wide statements, indicate the measurement focus and basis of accounting that should...
With regard to the government-wide statements, indicate the measurement focus and basis of accounting that should be employed. What conditions must be satisfied in order to use the modified approach for recording infrastructure?
Cash vs. Accrual Accounting: Explain the difference between the cash basis, modified cash basis, and the...
Cash vs. Accrual Accounting: Explain the difference between the cash basis, modified cash basis, and the accrual basis measures of performance. Provide examples of accounts that are treated differently under the three methods. Be sure to review the related PowerPoint Presentation in the Unit 3 Presentations/Lectures and in the Supplementary Materials. Why, in most cases, does accrual basis net income provide a better measure of performance than cash basis net income? Explain the purpose of adjusting entries as they relate...
Transaction Reporting in Fund and Government-Wide Statements Consider the following transactions of Daley County: 1. General...
Transaction Reporting in Fund and Government-Wide Statements Consider the following transactions of Daley County: 1. General property taxes of $4,500,000 are levied. 2. Grants of $850,000 are received from the state to finance public safety programs. 3. Investment income of $55,000 is earned and received in cash on investments of a debt service fund. 4. Investment income of $85,000 is earned and received in cash on investments made using money received from a generous citizen. The money is held in...
... Reconciliations required to yield government-wide financial statements from fund financial statements and preparation of financial...
... Reconciliations required to yield government-wide financial statements from fund financial statements and preparation of financial statements                                                    The City of Jackson Hole is preparing its government-wide financial statements for the year. Its accountant must prepare a number of journal entries to recognize assets and liabilities previously omitted from the fund financial statements and to recognize revenues and expenses for the year under accrual accounting that were not recognized under the current financial resources measurement focus and the modified accrual...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT