Please do these assignments separately according to their numbers

P. 2-1 Government-wide statements report on assets and liabilities that are denied recognition on funds statements. Entrepreneurs Consultants, a state agency, was established to provide consulting services to small businesses. It maintains only a single general fund and accounts for its activities on a modified accrual basis. During its first month of operations, the association engaged in, or was affected by, the following transactions and events: 1. It received an unassigned grant of $100,000. 2. It purchased five computers at $2,000 each. 3. It paid wages and salaries of $6,000. 4. It borrowed $24,000 from a bank to enable it to purchase an automobile. It gave the bank a long-term note. 5. It purchased the automobile for $24,000. 6. It made its first payment on the noteinterest of $200. 7. It destroyed one of its computers in an accident. The computer was not insured. a. Prepare journal entries in the general fund to record each of the transactions or other events. b. Prepare a balance sheet and a statement of revenues and expenditures for the general fund. c. Prepare a government-wide statement of net position (balance sheet) and statement of activities. These should be on a full accrual basis. Assume that the capital assets have a useful life of five years and that no depreciation is to be charged on the computer that was destroyed. P. 2-2 Journal entries can be reconstructed from a balance sheet. The Sherill Utility District was recently established. Its balance sheet, after one year, is presented below. Note the following additional information: The general fund received all of its revenue, $150 million, from taxes. It had operating expenditures, excluding transfers to other funds, of $100 million. The general fund transferred $20 million to the debt service fund. Of this, $15 million was to repay the principal on bonds outstanding; $5 million was for interest. The district issued $130 million in bonds to finance construction of a plant and equipment. Of this, it expended $40 million. 1. Prepare journal entries to summarize all transactions in which the district engaged. You need not make closing entries. Do not be concerned as to the specific titles of accounts to be debited or credited (e.g., whether a transfer from one fund to another should be called a \"transfer,\" an \"expense,\" or an \"expenditure,\" or whether proceeds from bonds should be called \"bond proceeds\" or \"revenues\"). 2. Comment on how the district's government-wide (full accrual) statement of net position would differ from the balance sheet presented. Sherill Utility District Balance Sheet as of End of Year 1 (in millions) General Fund Capital Projects Fund Debt Service Fund Totals Assets Cash $30 $30 Investments $90 $20 110 Total assets $30 $90 $20 $140 Liabilities and fund balances Net position $30 $90 $20 $140 P. 2-3 Funds can be \"consolidated,\" but only at the risk of lost or misleading information. The following balance sheet was adapted from the financial statements of the Williamsburg Regional Sewage Treatment Authority (dates have been changed). Fund Types The transactions of the authority are accounted for in the following governmental fund types: General fundTo account for all revenues and expenditures not required to be accounted for in other funds. Capital projects fundTo account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays. Such resources are derived principally from other municipal utility districts to which the Williamsburg Regional Sewage Treatment Authority provides certain services. 1. Recast the balance sheets of the two funds into a single consolidated balance sheet (statement of net position). Show separately, however, the restricted and the unrestricted portions of the consolidated net position (not each individual asset and liability). Be sure to eliminate interfund payables and receivables. 2. Which presentation, the unconsolidated or the consolidated, provides more complete information? Explain. Which presentation might be seen as misleading? Why? What, if any, advantages do you see in this presentation even though it might be less complete and more misleading? Williamsburg Regional Sewage Treatment Authority Balance Sheet October 31, 2014 General Capital Projects Assets Cash $751 $5,021 Time deposits 16,398 Due on insurance claim 9,499 Due from general fund 9,000 Due from participants 66,475 4,414 Total assets $76,725 $34,833 Liabilities and fund equity Accounts payable $17,725 Due to capital projects fund 9,000 $26,725 Fund balance 50,000 34,833 Total liabilities and fund equity $76,725 $34,833 P. 2-4 The more complete presentation is not always the easiest to understand. Bertram County maintains a fund accounting system. Nevertheless, its comptroller (who recently retired from a position in private industry) prepared the following balance sheet (in millions): Assets Cash $600 Investments 1,800 Construction in progress 500 Capital assets 1,200 Total assets $4,100 Liabilities and fund balance Bonds payable $1,700 Fund balance Restricted for capital projects $600 Restricted for debt service 200 Unassigned 1,600 2,400 Total liabilities and fund balance $4,100 The fund balance restricted for debt service represents entirely principal (not interest) on the bonds payable. 1. Recast the balance sheet, as best you can, into separate balance sheets for each of the funds that are apparently maintained by the county. Assume that the county uses a modified accrual basis of accounting that excludes recognition in its funds of both capital assets and long-term debt. Assume also that cash and investments are divided among the funds in proportion to fund balances. Town of Paris Balance Sheet Governmental Funds (in millions) General Fund Hotel Tax (Special Revenue) Fund Bridge (Capital Projects) Fund Bond (Debt Service) Fund Endowment (Permanent) Fund Totals Assets Cash $38 $20 $35 $340 $10 $443 Investments 105 60 480 136 960 1,741 Due from other funds 120 46 39 205 Total assets $143 $200 $561 $515 $970 $2,389 Liabilities and fund balances Accounts payable $8 $8 Due to other funds 205 205 Fund balances (70) 200 561 515 970 2,176 Total liabilities and fund balances $143 $200 $561 $515 $970 $2,389 2. In your opinion, which of the two presentations gives the reader a more complete picture of the county's financial status? Why? Which presentation is easier to understand? P. 2-5 Consolidated balances are not substitutes for individual fund balance sheets. See the following balance sheet for the town of Paris governmental funds. In addition, you learn from other records that the town has capital assets with a book value (net of depreciation) of $1,450 million and has outstanding long-term bonds of $1,315 million. 1. Recast the balance sheets (taking into account the information on capital assets and long-term debt) in the form of a single consolidated, full accrual, government-wide statement of net position. 2. Put yourself in the place of an analyst. The town mayor presents you with the government-wide statement of net position similar to the one you just prepared. She asserts that the town is in excellent fiscal condition as measured by the exceedingly \"healthy\" balance of net position. Based on your having seen the combined balance sheet that shows the individual funds, why might you be skeptical of her claim? 3. Comment on why a government-wide consolidated statement of net position is no substitute for a combined balance sheet that reports upon major funds. P. 2-6 The nature of a transaction gives a clue as to the type of fund in which it should be recorded. Kendal County engaged in the following transactions. For each, prepare an appropriate journal entry and indicate the type of fund in which it would most likely be recorded: 1. It levied and collected $1million in taxes and dedicated to the repayment of outstanding general obligation bonds. 2. It billed sponsors of a charity bicycle ride $5,000 for providing police patrols during the ride. 3. It recognized $60,000 of cash dividends on investments dedicated to the support of a county arts center. 4. It recognized $70,000 of cash dividends on investments dedicated to scholarships for needy county residents. 5. It incurred $6 million in construction costs to complete a new county jail. The new jail was funded entirely with the proceeds of long-term bonds. 6. It transferred $400,000 of unrestricted funds to an appropriate fund to be invested and eventually used to repay the principal on the long-term jail bonds (entries in two funds required). 7. It recognized depreciation of $100,000 on equipment in a vehicle repair center that services all county departments that have motor vehicles. 8. It collected $30,000 in parking fees at the county owned garage. 9. It issued $8 million in bonds to improve the city-owned electric utility. 10. It distributed $3 million in taxes collected on behalf of school districts located within the country. Review the Comprehensive Annual Financial Report (CAFR) that you obtained. 1. What are three main sections of the report? 2. Review the introductory section of the CAFR. a. Was the entity's annual report of the previous year awarded a \"certificate of achievement for excellence in financial reporting\" by the Government Finance Officers Association? What is the significance of this award? b. What are the key issues addressed in the letter of transmittal? 3. Review the financial section. a. Which, if any, independent audit firm performed an audit of the CAFR? b. Did the entity receive an \"unqualified\" audit opinion? If not, why not? c. Does the report contain management's discussion and analysis (MD&A)? If so, what are the key issues addressed? d. Does the report provide a reconciliation between total governmental net position per the government-wide statement of net position and total governmental fund balances per the governmental funds balance sheet? If so, what are the main reconciling items? e. What are the major governmental funds maintained by the entity? Does the entity's fund structure conform to its organizational structure? f. Does the report include \"required supplementary information\"? If so, what are the main areas addressed? g. Does the report include \"combining statements\"? If so, what is the nature of these statements? h. Does the report include other supplemental information? If so, what types of information are in this section of the report? 4. Review the statistical section. a. What is the population of the entity being reported on? b. Who is the entity's major employer? c. What types of information are included in the statistical