Question

Govermental Accounting

Compute The Expense and Expenditure for the Grambling Housing Development for the year ended December 31, 2016 based on the following data:

Grambling Housing Development, a small housing service nonprofit agency, began operations on January 1, 2016, with $40,000 cash and $150,000 Equipment, on which $60,000 was owed on a note to Chase Bank. The equipment was expected to have a remaining useful life of 25 years with no salvage value. During its first year of operations, ending December 31, 2016, Grambling Housing paid or accrued the following:2.Utilities, $24,0004.Capital Outlay-additional houses were purchased on January 3, 2016 for $300,000 expected to have a 25 year useful life.

Salaries and other personnel costs, $100,000

Utilities $24,000

Debt service-interest $5,500 and payment on long-term note principal $10,000

Capital Outlay-additional houses were purchased on January 3, 2016 for $300,000 expected to have a 25 year useful life.

Answer 1

WN

Calculation of Total depreciation on equipment

Calculate Depreciation of Equipment

Cost of Equipment =$150000

No of useful Yrs =25 yrs

Depreciation of eqipment =Cost of equipment/No of useful yrs

                                        = $150000/25

                                        = $6000

Depreciation of Additional depreciation :

Cost of equipment =$300000

No of useful life =25

Deprecaition= Cost of equipment/No of Yrs

                    =$12000

Total Depreciation = $6000+$12000

                              = $18000

Compute the expenses and expenditures of G Housing Development for the yr ended 31 dec 2016.

                                                                       Expenses         Expensitures

Salaries and Other Personal Cost                   $100000          $100000

Rent and Utilities                                            $24000            $24000

Debt Service Interest                                      $5500               $5500

Payment of Long Term Note Principal             -                      $10000

Equipment Purchase                                       -                       $300000

Depreciation                                                   $18000              -

Total    $147500    $439500