9:48 Back version 1 Task: 2 The Muscat City for the year 2019 maintain two funds: a General Fund accounts for its unrestricted resources and general operations, and a Proprietary funds for internal services and State Enterprises. The Muscat City has provided the following financial information for the year 2019. The City issued OMR 5 million in long-term Bonds for operational expenditure to cover up the deficit due to the unexpected fall in the prices of crude oil. The proceeds must be used for the day to day expenditure of the government. As the City's sewage system is outdated and needs to be improved, City requested the national government for financial assistance in the form of grant. The national government approved a grant of OMR 3 million for the purpose. To improve City's operational efficiency and services to the society, it has been decided to construct a purpose built building to accommodate its main office. As it involves huge amount of OMR 2.5 million, City has decided to borrow the fund from the public and financial institutions by issuing bonds in the local and international market. Using the bond issue proceeds, the City signed an agreement with one of the leading construction company to construct the main office. The cost of the construction amounts to OMR 2.25. The City also transferred S 0.05 million to Debt Service Fund as the first payment towards the principal and interest of its bonds issued for operational expenditure. The City also signed a contract for OMR 2 million to improve the sewage system of the city The City decided to set up its own printing and publishing department by investing OMR 0.5 million but the services will be available only for government units, but not free of cost. City government also transferred 0.75 million as an investment for automation and diversification of the services of Public Authority for Water and Electricity. The printing and publishing department billed the City for the services and goods delivered OMR 0.15 Payment of salary and other allowances by the City government to the government employees OMR 1.25 million The City levied $ 1 million of general property taxes of which it actually collected $ 0.4 million. Transferred OMR 0.4 million to a fund which will remain intact except the revenue and interest accrued on it. Reported the completion of a portion of the sewage work, duly approved by the City, You are requested to prepare the necessary journal entries and record it in the relevant Fund Account both governmental fund and proprietary funds. (Smarks) Using the information available in task 2, prepare: (only governmental fund) A statement of Revenues, Expenditure and changes in Fund Balance of Muscat City for the year 2019. (3marks) A Balance sheet of Muscat City for the same period. ( 2 marks) 5 9:48 Back version 1 Task: 2 The Muscat City for the year 2019 maintain two funds: a General Fund accounts for its unrestricted resources and general operations, and a Proprietary funds for internal services and State Enterprises. The Muscat City has provided the following financial information for the year 2019. The City issued OMR 5 million in long-term Bonds for operational expenditure to cover up the deficit due to the unexpected fall in the prices of crude oil. The proceeds must be used for the day to day expenditure of the government. As the City's sewage system is outdated and needs to be improved, City requested the national government for financial assistance in the form of grant. The national government approved a grant of OMR 3 million for the purpose. To improve City's operational efficiency and services to the society, it has been decided to construct a purpose built building to accommodate its main office. As it involves huge amount of OMR 2.5 million, City has decided to borrow the fund from the public and financial institutions by issuing bonds in the local and international market. Using the bond issue proceeds, the City signed an agreement with one of the leading construction company to construct the main office. The cost of the construction amounts to OMR 2.25. The City also transferred S 0.05 million to Debt Service Fund as the first payment towards the principal and interest of its bonds issued for operational expenditure. The City also signed a contract for OMR 2 million to improve the sewage system of the city The City decided to set up its own printing and publishing department by investing OMR 0.5 million but the services will be available only for government units, but not free of cost. City government also transferred 0.75 million as an investment for automation and diversification of the services of Public Authority for Water and Electricity. The printing and publishing department billed the City for the services and goods delivered OMR 0.15 Payment of salary and other allowances by the City government to the government employees OMR 1.25 million The City levied $ 1 million of general property taxes of which it actually collected $ 0.4 million. Transferred OMR 0.4 million to a fund which will remain intact except the revenue and interest accrued on it. Reported the completion of a portion of the sewage work, duly approved by the City, You are requested to prepare the necessary journal entries and record it in the relevant Fund Account both governmental fund and proprietary funds. (Smarks) Using the information available in task 2, prepare: (only governmental fund) A statement of Revenues, Expenditure and changes in Fund Balance of Muscat City for the year 2019. (3marks) A Balance sheet of Muscat City for the same period. ( 2 marks) 5