Hello,
I need an answer to question 13-8 (without reconciliation). but in order to answer it, you need to answer question 12-4 and 12-5 first. Answers to question 12-5 provided.
So, questions 13-8 and 12-4 needed.
thank you in advance.
2 pics below 12-5 answers the third one is down.
pic below for 12-4
Allgnment Number D15 E FG H A B 1 Debt Service Fund 2 Liabilities and Fund Balance 4 -Liabilities Assets Fund Balance and Changes in Fund Balance Due from General Fund Fund Balance Cash Beginning Balance 4,000 16.000 20,000 Transaction # 1 Transaction # 2 Transaction # 3 Transaction # 4 | Transaction # 5 Transaction # 6 Transaction # 7 12 13 14 15 16 17 18 19 20 21 60,000 Transfer from General fund 70,000 (10,000) (38,000) $36,000 $6,000 | (8,000) Interest Expenditure 3 30,000) Debt Service Principal Expenditure S42,000 Ending Balance 23 24 General Fund Deft Service Fund Capital Projects Fund Merge & Center-s-% , 1s: Conditional Format as Cel Formatting Table Styles Styles 00 2 Clipboard E25 A B Font Alignment Number E F G HI 2 Capital Projects Fund Liabilities and Fund Balance Fund Balance and Changes in Fund Balance Assets Liabilities Due from General Fund 6 Fund Balance Cash 0 0 Beginning Balance 10 12 13 14 15 16 17 18 19 20 21 Transaction # 2 Transaction # 3 Transaction # 4 Transaction # 5 Transaction # 6a Transaction # 6b Transaction # 7 200,000 (200.000) 200,000 Other Sources of Financing -Note Payable (200,000) Capital Outlay Expenditure Ending Balance 23 24 25 General Fund |Debt Service Fund Capital Proiects Fund PART IV Reporting Results its debt service fund. A total of $70,0 the impact of the transactions on the fun- damental equation of accounting (optional show journal entries-see Appendix 12-A). Assume that the modified accrual basis is of cash was paid to the debt service fund. In years when the full require transfer is not made, the debt service fund has a receivable (Due From Gen- eral Fund). If more than the required amount is paid, the debt service fund's used. Simonsen Village has employees who earned $400,o0o for the year. At the end of the year, the salaries payable bal ance was $10,000. Note that $200,000 of wages related to general govern- ment, $140,000 was for education, and $60,00o was for the public works, 1. 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 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 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 $8,0oo and $30,000, respec- tively. The interest covers all long-term borrowing by Simonsen Village. The principal relates to the fire truck pur- it had used $6,000 of the inventory but no payment had been made. The purchases method is used. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education. chased during the year 3. Simonsen Village's major source of funds is real estate taxes. Total tax bills issued were for $300,00o. Total collections were the $20,000 from the previous year's ending balance in taxes receivable and $260,oo0 of this year's taxes. Eighty percent of the outstand ing balance at year-end is expected to be collected early in the next fiscal year 4. Simonsen Village is entitled to receive unrestricted grants from the state. During the year, grants in the amount of $100,0oo were made. The total col lections on grants were just $20,ooo This $20,000 consisted of $10,000 that the state owed for the previous year and $10,000 for the current year's grant. The state will be paying the bal- ance owed to Simonsen Village within 12-5. Simonsen Village is a relatively new com- munity. At the start of the year, the govern- ment had no long-term assets or liabilities In fact, all of the infrastructure (e.g., roads) in the village are owned by the county or state rather than the town. However, the village government has the primary respon- sibility for putting out fires in the village. Transactions 6 and 7 for Simonsen Village described in Problem 12-4, both relate to the town's new fire truck. Exhibit 12-4 presents January 1, 20 balances for Simonsen Village's accounts. These balances at the start of the year were the same on both the modified accrual and accrual bases. (Hint: That may not be the case at the end of the year.) Show the begin ning balances from Exhibit 12-4 a transactions from Problem 12-4 in a work- Show 3o days after the year ends. During the year, Simonsen Village was legally required to transfer $60,000 to sheet format similar to Exhibit 12-3 ending balances. Make a separate for each fund. 5. dest gerviee tunds, 451 enterprise funds, 452 expense accrual, 448 fiduciary funds, 451 suverRmental funds, 451 internal service funds, 452 modified accrual special revenue funds, 451 trust funds, 452 accounting, 445 permanent funds, 451 Questions for Discussion 12-1. What are the fund categories used by gov- appropriations, expenditures, and encum- brances? ernments? Discuss. 12-2. What are the benefits of budgetary account- ing? What is the difference between 12-3. How does modified accrual accounting dif- fer from cash and accrual accounting? Problems 12-4. See Exhibit 12-4 for opening account bal- ances. Record the following financial transactions for Simonsen Village for the fiscal year ending December 31, 2018. Show what bases of accounting are used in the BFS? u ul the MD&A. o o. 13-4. What do BFS contain? Discuss. 13-7. Will long-term assets appear on the governmental funds balance sheet? Why? Problem 13-8. For Simonsen Village (see Problems 12-4 and 12-5 from Chapter 12), pre- pare a government-wide statement of net position and statement of activities, and a governmental funds balance sheet and statement of rev- enues, expenditures, and changes in fund balances. Any ending balance in the Debt Service Fund is legally restricted to debt service payments on the firetruck. Also prepare reconcilia- tions for the differences between the governmental and government-wide financial statements. (Hint: The rec- onciliations require you to determine what would differ under acecrual accounting compared with modified accrual.) Review chapter content and explore online resources at study.sagepub.com/finklerse Styles D E F G HI IJK L General Fund - Modified Accrual Transactions Analysis Worksheet Liabilities and Fund Balance Assets Liabilities Deferred Inflow of Resources Fund Balance and Changes in Fund Balance Real Estate Taxes Due to 12 State Deferred Accounts Senice | Salaries inflow of Pavable Resources 13 Grants Fund Cash Receivable Receivable Payable Fund Balance 15 Beginning Balance 16 17 Transaction # 1 18 19 20 Transaction # 2 21 S0 $16,000 90,000 80000 $10 $224,00 (200000 General Government Expenditures (140000) Education Expenditures (480000 (60000) Public Works, Safety & Sanitation Expenditures (2000) General Government Expenditures (6000) (2000) Pubic Works, Safety & Sanitation Expendtures 292000 Real Estate Tax Reveaues 23 Transaction # 3a 24 Transaction #3b (280000) 100000State Grant Revenues 25 Transaction # 4a 26 Transaction # 4b 27 (20000 60000) Transfer to Debt Service Fund (10000 Transaction 5 (70000 28 Transaction 6a 29 Transaction # 6b 30 Transaction #7 31 Ending Balance General Fund Debt Service Fund Capital Projects Fund Edit O Type here to search CHAPTER12 Unique Aspects of Accounting for State and Local Governments-Part I :The Recording Process EXHIBIT 12-4 January 1, 2018, Balances General Fund Debt Service Fund Capital Projects Fund Cash Real estate taxes receivable State grants receivable Due from general fund Salaries payable Due to debt service fund Fund balance/unrestricted net assets $300,000 20,000 10,000 $4,000 16,000 90,000 16,000 224,000 20,000 Development Fund (a goverr fund). 12-6. Please use the following choices to fill in the blanks below: Allgnment Number D15 E FG H A B 1 Debt Service Fund 2 Liabilities and Fund Balance 4 -Liabilities Assets Fund Balance and Changes in Fund Balance Due from General Fund Fund Balance Cash Beginning Balance 4,000 16.000 20,000 Transaction # 1 Transaction # 2 Transaction # 3 Transaction # 4 | Transaction # 5 Transaction # 6 Transaction # 7 12 13 14 15 16 17 18 19 20 21 60,000 Transfer from General fund 70,000 (10,000) (38,000) $36,000 $6,000 | (8,000) Interest Expenditure 3 30,000) Debt Service Principal Expenditure S42,000 Ending Balance 23 24 General Fund Deft Service Fund Capital Projects Fund Merge & Center-s-% , 1s: Conditional Format as Cel Formatting Table Styles Styles 00 2 Clipboard E25 A B Font Alignment Number E F G HI 2 Capital Projects Fund Liabilities and Fund Balance Fund Balance and Changes in Fund Balance Assets Liabilities Due from General Fund 6 Fund Balance Cash 0 0 Beginning Balance 10 12 13 14 15 16 17 18 19 20 21 Transaction # 2 Transaction # 3 Transaction # 4 Transaction # 5 Transaction # 6a Transaction # 6b Transaction # 7 200,000 (200.000) 200,000 Other Sources of Financing -Note Payable (200,000) Capital Outlay Expenditure Ending Balance 23 24 25 General Fund |Debt Service Fund Capital Proiects Fund PART IV Reporting Results its debt service fund. A total of $70,0 the impact of the transactions on the fun- damental equation of accounting (optional show journal entries-see Appendix 12-A). Assume that the modified accrual basis is of cash was paid to the debt service fund. In years when the full require transfer is not made, the debt service fund has a receivable (Due From Gen- eral Fund). If more than the required amount is paid, the debt service fund's used. Simonsen Village has employees who earned $400,o0o for the year. At the end of the year, the salaries payable bal ance was $10,000. Note that $200,000 of wages related to general govern- ment, $140,000 was for education, and $60,00o was for the public works, 1. 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 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 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 $8,0oo and $30,000, respec- tively. The interest covers all long-term borrowing by Simonsen Village. The principal relates to the fire truck pur- it had used $6,000 of the inventory but no payment had been made. The purchases method is used. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education. chased during the year 3. Simonsen Village's major source of funds is real estate taxes. Total tax bills issued were for $300,00o. Total collections were the $20,000 from the previous year's ending balance in taxes receivable and $260,oo0 of this year's taxes. Eighty percent of the outstand ing balance at year-end is expected to be collected early in the next fiscal year 4. Simonsen Village is entitled to receive unrestricted grants from the state. During the year, grants in the amount of $100,0oo were made. The total col lections on grants were just $20,ooo This $20,000 consisted of $10,000 that the state owed for the previous year and $10,000 for the current year's grant. The state will be paying the bal- ance owed to Simonsen Village within 12-5. Simonsen Village is a relatively new com- munity. At the start of the year, the govern- ment had no long-term assets or liabilities In fact, all of the infrastructure (e.g., roads) in the village are owned by the county or state rather than the town. However, the village government has the primary respon- sibility for putting out fires in the village. Transactions 6 and 7 for Simonsen Village described in Problem 12-4, both relate to the town's new fire truck. Exhibit 12-4 presents January 1, 20 balances for Simonsen Village's accounts. These balances at the start of the year were the same on both the modified accrual and accrual bases. (Hint: That may not be the case at the end of the year.) Show the begin ning balances from Exhibit 12-4 a transactions from Problem 12-4 in a work- Show 3o days after the year ends. During the year, Simonsen Village was legally required to transfer $60,000 to sheet format similar to Exhibit 12-3 ending balances. Make a separate for each fund. 5. dest gerviee tunds, 451 enterprise funds, 452 expense accrual, 448 fiduciary funds, 451 suverRmental funds, 451 internal service funds, 452 modified accrual special revenue funds, 451 trust funds, 452 accounting, 445 permanent funds, 451 Questions for Discussion 12-1. What are the fund categories used by gov- appropriations, expenditures, and encum- brances? ernments? Discuss. 12-2. What are the benefits of budgetary account- ing? What is the difference between 12-3. How does modified accrual accounting dif- fer from cash and accrual accounting? Problems 12-4. See Exhibit 12-4 for opening account bal- ances. Record the following financial transactions for Simonsen Village for the fiscal year ending December 31, 2018. Show what bases of accounting are used in the BFS? u ul the MD&A. o o. 13-4. What do BFS contain? Discuss. 13-7. Will long-term assets appear on the governmental funds balance sheet? Why? Problem 13-8. For Simonsen Village (see Problems 12-4 and 12-5 from Chapter 12), pre- pare a government-wide statement of net position and statement of activities, and a governmental funds balance sheet and statement of rev- enues, expenditures, and changes in fund balances. Any ending balance in the Debt Service Fund is legally restricted to debt service payments on the firetruck. Also prepare reconcilia- tions for the differences between the governmental and government-wide financial statements. (Hint: The rec- onciliations require you to determine what would differ under acecrual accounting compared with modified accrual.) Review chapter content and explore online resources at study.sagepub.com/finklerse Styles D E F G HI IJK L General Fund - Modified Accrual Transactions Analysis Worksheet Liabilities and Fund Balance Assets Liabilities Deferred Inflow of Resources Fund Balance and Changes in Fund Balance Real Estate Taxes Due to 12 State Deferred Accounts Senice | Salaries inflow of Pavable Resources 13 Grants Fund Cash Receivable Receivable Payable Fund Balance 15 Beginning Balance 16 17 Transaction # 1 18 19 20 Transaction # 2 21 S0 $16,000 90,000 80000 $10 $224,00 (200000 General Government Expenditures (140000) Education Expenditures (480000 (60000) Public Works, Safety & Sanitation Expenditures (2000) General Government Expenditures (6000) (2000) Pubic Works, Safety & Sanitation Expendtures 292000 Real Estate Tax Reveaues 23 Transaction # 3a 24 Transaction #3b (280000) 100000State Grant Revenues 25 Transaction # 4a 26 Transaction # 4b 27 (20000 60000) Transfer to Debt Service Fund (10000 Transaction 5 (70000 28 Transaction 6a 29 Transaction # 6b 30 Transaction #7 31 Ending Balance General Fund Debt Service Fund Capital Projects Fund Edit O Type here to search CHAPTER12 Unique Aspects of Accounting for State and Local Governments-Part I :The Recording Process EXHIBIT 12-4 January 1, 2018, Balances General Fund Debt Service Fund Capital Projects Fund Cash Real estate taxes receivable State grants receivable Due from general fund Salaries payable Due to debt service fund Fund balance/unrestricted net assets $300,000 20,000 10,000 $4,000 16,000 90,000 16,000 224,000 20,000 Development Fund (a goverr fund). 12-6. Please use the following choices to fill in the blanks below
