Get an answer from tutors to this homework question now: A special districts balance sheet may not capture its economic resources and obligations. A special district accounts for its general fund (its only fund) on a modified accrual basis. In a particular period, it engaged in the following transactions. a. It issued $20 million in long-term bonds. b. It acquired several tracts of land, at a total cost of $4 million, paying the entire amount in cash. c. It sold a portion of the land for $1 million, receiving cash for the entire amount. The tract sold had cost $0.8 million. d. It repaid $2 million of the bonds. e. It lost a lawsuit and was ordered to pay $9 million over three years. It made its first cash payment of $3 million. 1. Prepare journal entries to record the transactions in the general fund. 2. Based on your journal entries, prepare a balance sheet and a statement of revenues, expenditures, and other changes in fund balance. 3. Comment on the extent to which the balance sheet captures the districts economic resources and obligations. How can you justify such a balance sheet? 4. Comment on the extent to which the statement of revenues, expenditures, and other changes in fund balance captures the districts cost of services. How can you justify such a financial statement? 2-4 Funds are separate fiscal and accounting entities, each with its own self-balancing set of accounts. The newly established Society for Ethical Teachings maintains two fundsa general fund for operations and a building fund to accumulate resources for a new building. In its first year, it engaged in the following transactions. a. It received cash contributions of $200,000, of which $40,000 was restricted for the acquisition of the new building. b. It incurred operating costs of $130,000, of which it paid $120,000 in cash. c. It earned $3,000 of interest (the entire amount received in cash) on resources restricted for the acquisition of the new building. d. It transferred $17,000 from the operating fund to the new building fund. e. It paid $12,000 in fees (accounted for as expenses) to an architect to draw up plans for the new building. 1. Prepare journal entries to record the transactions. Be certain to indicate the fund in which they would be made. 2. Prepare a statement of revenues, expenditures, and other changes in fund balances and a balance sheet. Use a two-column format, one column for each of the funds.

Get an answer from tutors to this homework question now: A special districts balance sheet may not capture its economic resources and obligations. A special district accounts for its general fund (its only fund) on a modified accrual basis. In a particular period, it engaged in the following transactions. a. It issued $20 million in long-term bonds. b. It acquired several tracts of land, at a total cost of $4 million, paying the entire amount in cash. c. It sold a portion of the land for $1 million, receiving cash for the entire amount. The tract sold had cost $0.8 million. d. It repaid $2 million of the bonds. e. It lost a lawsuit and was ordered to pay $9 million over three years. It made its first cash payment of $3 million. 1. Prepare journal entries to record the transactions in the general fund. 2. Based on your journal entries, prepare a balance sheet and a statement of revenues, expenditures, and other changes in fund balance. 3. Comment on the extent to which the balance sheet captures the districts economic resources and obligations. How can you justify such a balance sheet? 4. Comment on the extent to which the statement of revenues, expenditures, and other changes in fund balance captures the districts cost of services. How can you justify such a financial statement? 2-4 Funds are separate fiscal and accounting entities, each with its own self-balancing set of accounts. The newly established Society for Ethical Teachings maintains two fundsa general fund for operations and a building fund to accumulate resources for a new building. In its first year, it engaged in the following transactions. a. It received cash contributions of $200,000, of which $40,000 was restricted for the acquisition of the new building. b. It incurred operating costs of $130,000, of which it paid $120,000 in cash. c. It earned $3,000 of interest (the entire amount received in cash) on resources restricted for the acquisition of the new building. d. It transferred $17,000 from the operating fund to the new building fund. e. It paid $12,000 in fees (accounted for as expenses) to an architect to draw up plans for the new building. 1. Prepare journal entries to record the transactions. Be certain to indicate the fund in which they would be made. 2. Prepare a statement of revenues, expenditures, and other changes in fund balances and a balance sheet. Use a two-column format, one column for each of the funds