Answer only 12-4, 12-7, and 12-9

12.4 problem

12.7 problem

12.9 problem

be state. During the of $100.000 son grants were sed of is year and The state will be to Simonsen Vilar 12-4. See Exhibit 12-3 for opening account balances. Record the following financial transactions for Simonsen Village for the fiscal year ending December 31, 2021. Show the impact of the transactions on the fundamental equation of accounting (optional: show journal entries-see Appendix 12-A). Assume that the modified accrual basis is used. 1. Simonsen Village has employees who earned $400,000 for the year. At the end of the year, the salaries payable balance was $10,000. Note that $200,000 of wages related to general government, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department 2. Inventory was ordered by Simonsen Village. The entire order was received. The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6,000 of the inventory, but no payment had been made. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education. 3. Simonsen Village's major source of funds is real estate taxes. Total tax bills issued were for $300,000. Total collections were the $20,000 from the previous year's ending balance in taxes receivable and $260,000 of this year's taxes. Eighty percent of the outstanding balance at year- end is expected to be collected fiscal year. Simonsen Village is entitled to me unrestricted grants from the state year, grants in the amount of $100 made. The total collections on a $20,000. This $20,000 consisted of the state owed for the previous year for the current year's grant. The states paying the balance owed to Simonsen within 30 days after the year ends. 5. During the year, Simonsen Village was las required to transfer $60,000 to its debt fund. A total of $70,000 of cash was paid to debt service fund. In years when the full transfer is not made, the debt service fund a receivable (Due from General Pund). If the than the required amount is paid, the debt en fund's receivable declines. 6. Simonsen Village acquired a new fire truck eaty i the year for $200,000. The fire truck is expected to last 10 years and has no salvage value. It was financed by a long-term note for the full amount Simonsen Village has a capital projects fund. 7. The interest and principal due on Simonsen Village's debt during the year and paid from the debt service fund were $8,000 and $30,000, a modified accrual b. accrual c. cash 1. Under the method of accounting, expenses are recognized when assets are used up, while under the method, expenditures are recognized when the asset is purchased. 2. The local government's water enterprise fund uses the method of accounting because it is run like a business. Fund, and all capital expenditures are made using this fund 1. Show how Marloweville would record the transaction(s) if it were to issue a $10 million bond and then use the proceeds to construct the stadium. 2. Show how Marloweville would record the transaction if it were to finance 50 percent of the construction with a municipal bond and 50 percent through a transfer from the Economic Development Fund (a governmental fund). 3. If, at the end of the fiscal year, Marloweville makes a loan repayment of $250,000 plus a $50,000 interest payment, the total expenditure for the transaction will equal a $0. b. $250,000. C. $50,000 d. $300,000 12-7. Marloweville, with 20,000 residents, is deciding how to finance the construction of a new municipal stadium that will enhance both recreation and tourism in the area. The construction cost of the stadium is $10 million. By law, all proceeds from debt issuance are placed in Marloweville's Capital Projects 12-8. The South City Golf Course purchased a new golf cart for $18,000 in cash at the beginning of the fiscal Used to track resources earmarked for specific purpose Used to track resources available to ble to pay interest and loans An enterprise or internal service fund Used to designate funds that are obliga under a legal contract Used for routine ordinary activities of government 6. - A type of fiduciary fund Business-type fund where the services are provided to other units of government year. South City accounts for the golf course using an enterprise fund. It plans on using straight-line depreciation for its capital assets. South City expects the cart to last 6 years and to then have no salvage value. 1. Select the most correct answer: At the time of the cart purchase, the accountant for South City Golf Course will a. decrease cash by $18,000 and increase expenses by $18,000. b. decrease cash by $18,000 and increase equipment assets by $18,000. c. increase equipment assets by $18,000 and increase net assets by $18,000. d. not record this transaction, because governments do not record long-term assets. 2. Select the most correct answer: At the end of the fiscal year, the accountant for South City Golf Course will a. increase accumulated depreciation by $3,000 and increase expenditures by $3,000. b. increase accumulated depreciation by $3,000 and increase expenses by $3,000. c. increase accumulated depreciation by $18,000 and increase expenses by $18,000. d. not be required to record journal entries at this time. 12-10. The Lauth City Council has appropriated $75,000 to the Parks and Recreation Department for the purchase of supplies. In the first week of the fiscal year, the department manager places an order for $5,000 in supplies to be received in 2 weeks. Two weeks later, the same manager places another order for $3,000 in supplies to be delivered in 1 month 1. At the end of the first month of the fiscal year, how much of the budget appropriation does the Parks and Recreation Department have remaining for supplies? a. $75,000 b. $67,000 c. $72,000 d. None of the above. 2. As of the end of the first month of the fiscal year, how much is encumbered by the Parks and Recreation Department? a. $5,000 b. $3,000 c. $8,000 d. $0 12-9. Match the following terms with the most correct statement below. a. Debt service fund b. Component units c. Encumbrance d. Proprietary fund e. Internal service funds f. Special revenue fund g. General fund h. Custodial fund PROBLEMS ted early in the next mount of $100,000 were 12-4. See Exhibit 12-3 for opening account balances. Record the following financial transactions for Simonsen Village for the fiscal year ending December 31, 2021. Show the impact of the transactions on the fundamental equation of accounting (optional: show journal entries-see Appendix 12-A). Assume that the modified accrual basis is used. 1. Simonsen Village has employees who earned $400,000 for the year. At the end of the year, the salaries payable balance was $10,000. Note that $200,000 of wages related to general government, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department insisted of $10,000 that revious year and $10,000 end is expected to be collected early in fiscal year. Simonsen Village is entitled to receive unrestricted grants from the state. Duri year, grants in the amount of $100,000 made. The total collections on grants wer $20,000. This $20,000 consisted of $10.0 the state owed for the previous year and S for the current year's grant. The state will be paying the balance owed to Simonsen Villa within 30 days after the year ends. 5. During the year, Simonsen Village was legally required to transfer $60,000 to its debt service fund. A total of $70,000 of cash was paid to the debt service fund. In years when the full required transfer is not made, the debt service fund has a receivable (Due from General Fund). If more than the required amount is paid, the debt service fund's receivable declines. 6. Simonsen Village acquired a new fire truck early in the year for $200,000. The fire truck is expected to last 10 years and has no salvage value. It was financed by a long-term note for the full amount. Simonsen Village has a capital projects fund. 7. The interest and principal due on Simonsen Village's debt during the year and paid from the debt service fund were $8,000 and $30,000, 2. Inventory was ordered by Simonsen Village. The entire order was received. The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6,000 of the inventory, but no payment had been made. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education 3. Simonsen Village's major source of funds is real estate taxes. Total tax bills issued were for $300,000. Total collections were the $20,000 from the previous year's ending balance in taxes receivable and $260,000 of this year's taxes. Eighty percent of the outstanding balance at year- w all capital expenditures are made using this fund. a. modified accrual b. accrual c. cash 1. Under the method of accounting, expenses are recognized when assets are used up, while under the method, expenditures are recognized when the asset is purchased. 2. The local government's water enterprise fund uses the method of accounting because it is run like a business. 1. Show how Marloweville would record the transaction(s) if it were to issue a $10 million bond and then use the proceeds to construct the stadium. 2. Show how Marloweville would record the transaction if it were to finance 50 percent of the construction with a municipal bond and 50 percent through a transfer from the Economic Development Fund (a governmental fund). 3. If, at the end of the fiscal year, Marloweville makes a loan repayment of $250,000 plus a $50,000 interest payment, the total expenditure for the transaction will equal a. $o. b. $250,000. c. $50,000. d. $300,000 12-7. Marloweville, with 20,000 residents, is deciding how to finance the construction of a new municipal stadium that will enhance both recreation and tourism in the area. The construction cost of the stadium is $10 million. By law, all proceeds from debt issuance are placed in Marloweville's Capital Projects 12-8. The South City Golf Course purchased a new golf cart for $18,000 in cash at the beginning of the fiscal Used to track resources earma carmarked for PART IV Reporting Results specific purpose 456 Used to track resources availah wilde toe interest and loans An enterprise or internal ser Used to designate funds that a al service for that are dogters under a legal contract Used for routine ordinary activiti linary activities of government year. South City accounts for the golf course using an enterprise fund. It plans on using straight-line depreciation for its capital assets. South City expects the cart to last 6 years and to then have no salvage value. 1. Select the most correct answer: At the time of the cart purchase, the accountant for South City Golf Course will a. decrease cash by $18,000 and increase expenses by $18,000. b. decrease cash by $18,000 and increase equipment assets by $18,000. c. increase equipment assets by $18,000 and 6. _A type of fiduciary fund Business-type fund where the se provided to other units of government bere the services ty Council has appropriated ation Department in the first week of the manager places an order increase net assets by $18,000. d. not record this transaction, because governments do not record long-term assets. 2. Select the most correct answer: At the end of the fiscal year, the accountant for South City Golf Course will a. increase accumulated depreciation by $3,000 and increase expenditures by $3,000. b. increase accumulated depreciation by $3,000 and increase expenses by $3,000. c. increase accumulated depreciation by $18,000 and increase expenses by $18,000. d. not be required to record journal entries at this time. 12-10. The Lauth City Council has app $75,000 to the Parks and Recreation Dep for the purchase of supplies. In the first we fiscal year, the department manager places for $5,000 in supplies to be received in 2 Two weeks later, the same manager places anothe order for $3,000 in supplies to be delivered in 1 month. 1. At the end of the first month of the fiscal year. how much of the budget appropriation does the Parks and Recreation Department have remaining for supplies? a. $75,000 b. $67,000 c. $72,000 d. None of the above. 12-9. Match the following terms with the most correct statement below. a. Debt service fund b. Component units C. Encumbrance d. Proprietary fund e. Internal service funds f. Special revenue fund & General fund h. Custodial fund 2. As of the end of the first month of the fiscal year, how much is encumbered by the Parks and Recreation Department? a. $5,000 b. $3,000 c. $8,000 d. $0