Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with governmental funds...need in the next 40 minutes if possible The City of Southern Pines maintains its books so as to prepare fund

image text in transcribed

Please help with governmental funds...need in the next 40 minutes if possible

image text in transcribed The City of Southern Pines maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide financial statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations. Use the account titles presented during the first 4 weeks where appropriate. Use the account title referred to in the question for all other entries (general obligation bonds = Bonds Payable). Depreciation for the year amounted to $10,000,000 for the City of Southern Pines. Additional capital outlay expenditures during the year amounted to $2,750,000. (2 entries - 2 points). General obligation bonds outstanding at the City of Southern Pines at the beginning of the year amounted to $2,657,430. (1 entry - 2 points) During the year, the City of Southern Pines had debt service expenditures amounting to: interest, $2,000,000; and principal, $20,400,000. In addition, bond discounts were amortized in the amount of $100,000. Interest incurred on the accrual basis but not due at year-end amounted to $50,000. (3 entries - 5 points) During the year, the City of Southern Pines issued additional general obligation bonds in the amount of $2,000,000, at 105% of par. (1 entry - 2 points). he city's only internal service fund, a print shop fund, is included in the proprietary funds statements. Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities: - (3 Separate entries - 5 points) Exclusive of the interest expense, the internal service fund reported operating income from interfund transactions of $120,000 for the current year. An examination of the records indicates that services were provided to general government departments. Balance sheet accounts include: Current Assets, $400,000; Capital Assets, $1,000,000; Accumulated Depreciation, $500,000; Accounts Payable, $150,000; Bonds Payable, $500,000; Net Assets, $250,000 as of year end. The only transaction in the internal service fund during this year that is external to the government is interest expense in the amount of $60,000. Transfers out from the General Fund to other funds were as follows: (1 entry - 2 points) To CPF $100,000 To DSF $150,000 To EF $275,000 To ISF $125,000 The long-term liability balance for compensated absences had an ending balance of $10,750,000 at fiscal year-end at the City of Southern Pines. Vacations that were earned this year but will be taken in future period at the City of Southern Pines amounted to $500,000 which was included in the fiscal year-end balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Reporting and Analysis

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

3rd edition

9781337909402, 978-1337788281

More Books

Students also viewed these Accounting questions