Problems, Points Vary

41.

Northwest State University had the following account balances as of June 30, 2014. Debits are not distinguished from credits, so assume all accounts have a "normal" balance (i.e. cash is a debit and accounts payable a credit) Required: On the space provided on the next page, assemble the Statement of Net Assets for Northwest State University as of June 30, 2014. (20 points)

Assets:			Liabilities:
Current Assets:			Current Liabilities:
			Total Current Liabilities:
Total Current Assets:			Long-term Liabilities:
Non-current Assets:
			Total Long-term Liabilities:
			Total Liabilities:
Total Non-current Assets:			Net Assets:
Total Assets:			Invested in Capital Assets, Net of Related Debt
			Restricted:
			Non-expendable
			Expendable
			Unrestricted:
			Total Net Assets:

42.

(15 points) Assume Towne Center Art Museum received the following contributions in 2014. (a) Unrestricted pledges of support were received in the amount of $240,000. All of these are due within the year and it is estimated that 6% will ultimately prove to be uncollectible. (b) 600 Memberships were sold to the public in the amount of $40 each. Membership provides the individual with a monthly magazine and other benefits. The estimated fair value of member benefits is $15. The member year runs from July 1 to June 30. (c) A local carpenter donated supplies and labor with values of $24,000 and $17,000 (respectively) to construct a new exhibition area. Fixed assets are classified as unrestricted net assets. (d) On March 1, 2014 a local businessman made a pledge payable in a future period. The pledge is restricted in purpose and has a present value of $104,000 (effective interest rate of 6%).

Prepare journal entries to record these events and any year-end adjusting journal entries resulting from the events.

Item	Account	Debit	Credit

43.

(3pts) Match the Type of Entity with the Equity sections of the Balance Sheet/Statement of Net Assets.

• Investor Owned
• Public University
• Private Not for Profit Organization

	Paid in Capital, Retained Earnings.
	Net Assets Invested in Capital Assets, Net of Related Debt, Restricted Net Assets, Unrestricted Net Assets.
	Unrestricted, Temporary Restricted net assets and Permanently Restricted net assets.

44.

(8 pts) St. Mark's is a private not-for-profit hospital. At the end of December 2013, a donor pledged to make five payments of $45,000, on January 1, 2014, - 2018. The contributions are restricted to pay for operations in those years. The present value of these payments is $200,930, discounted at 6%. The contribution was not restricted as to purpose. Record all entries required for 2013 and 2014.

Date	Account	Debit	Credit

45.

(10 pts) The Village of Lake George's General Fund has the following net resources at December 31, 2014 ? $5,000 of prepaid insurance ? $25,000 of property taxes receivable - currently due and expected to be collected within 60 days ? $300,000 rainy day fund approved by the township governing board ? $82,500 of supplies inventory ? $33,000 government grant for city park maintenance ? $10,000 contractual obligations for the purchase of park fixtures ? $200,000 to be used to fund government operations in the future Required: Prepare the fund balance section of the Balance Sheet.

Fund Balances
Non-spendable:
Restricted:
Committed:
Unassigned:
Total Fund Balance:

46.

(6 pts) The Village of Naples has $19,000 of purchase orders outstanding at the end of 2013 which will be honored. The goods and supplies were received during the second week of January, 2014. The invoice amounted to $18,800. What are the journal entries necessary to re-establish the encumbrance and record receipt of the supplies?

Account	Debit	Credit

47.

(8 pts) Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries. In order to reimburse the county for expenditures for administering the Tax Agency Fund, the Tax Agency Fund is to deduct two percent from the collections from the city and school district. The total amount deducted is to be added to the collections for the county and remitted to the County General Fund.

1. Current year tax levies to be collected by the Tax Agency Fund were: 2. In the first half of the year $4,120,000 was collected for the County General Fund, $3,456,000 for the Town and $4,608,000 for the School District. 3. Liabilities to all three units were recorded.

Record the necessary transactions in the accounts of the Washington County Tax Agency Fund.

Item	Account	Debit	Credit

48.

(10 pts) The Village of Canandaigua determined that, as of July 1, 2013, infrastructure assets estimated at $300 million were in place, with an estimated useful life of 25 years. During the year ended June 30, 2014, expenditures were $7 million for the routine maintenance of infrastructure, $3 million to extend the life of existing infrastructure, and $12 million for infrastructure additions and improvements. a) If the modified approach is used, what would be the amount charged to expense during the fiscal year ended June 30, 2014. What amount would be capitalized? b) What amount would have been charged to expense if the modified approach were not used? What amount would be capitalized?

Problems, Points Vary 41. Northwest State University had the following account balances as of June 30, 2014. Debits are not distinguished from credits, so assume all accounts have a "normal" balance (i.e. cash is a debit and accounts payable a credit) Required: On the space provided on the next page, assemble the Statement of Net Assets for Northwest State University as of June 30, 2014. (20 points) Assets: Current Assets: Liabilities: Current Liabilities: Total Current Liabilities: Total Current Assets: Long-term Liabilities: Non-current Assets: Total Long-term Liabilities: Total Liabilities: Total Non-current Assets: Total Assets: Net Assets: Invested in Capital Assets, Net of Related Debt Restricted: Non-expendable Expendable Unrestricted: Total Net Assets: 42. (15 points) Assume Towne Center Art Museum received the following contributions in 2014. (a) Unrestricted pledges of support were received in the amount of $240,000. All of these are due within the year and it is estimated that 6% will ultimately prove to be uncollectible. (b) 600 Memberships were sold to the public in the amount of $40 each. Membership provides the individual with a monthly magazine and other benefits. The estimated fair value of member benefits is $15. The member year runs from July 1 to June 30. (c) A local carpenter donated supplies and labor with values of $24,000 and $17,000 (respectively) to construct a new exhibition area. Fixed assets are classified as unrestricted net assets. (d) On March 1, 2014 a local businessman made a pledge payable in a future period. The pledge is restricted in purpose and has a present value of $104,000 (effective interest rate of 6%). Prepare journal entries to record these events and any year-end adjusting journal entries resulting from the events. Item Account Debit Credit 43 (3pts) Match the Type of Entity with the Equity sections of the Balance Sheet/Statement of Net Assets. . 1. Investor Owned 2. Public University 3. Private Not for Profit Organization Paid in Capital, Retained Earnings. Net Assets Invested in Capital Assets, Net of Related Debt, Restricted Net Assets, Unrestricted Net Assets. Unrestricted, Temporary Restricted net assets and Permanently Restricted net assets. 44. (8 pts) St. Mark's is a private not-for-profit hospital. At the end of December 2013, a donor pledged to make five payments of $45,000, on January 1, 2014, - 2018. The contributions are restricted to pay for operations in those years. The present value of these payments is $200,930, discounted at 6%. The contribution was not restricted as to purpose. Record all entries required for 2013 and 2014. Date Account Debit Credit 45. (10 pts) The Village of Lake George's General Fund has the following net resources at December 31, 2014 $5,000 of prepaid insurance $25,000 of property taxes receivable - currently due and expected to be collected within 60 days $300,000 rainy day fund approved by the township governing board $82,500 of supplies inventory $33,000 government grant for city park maintenance $10,000 contractual obligations for the purchase of park fixtures $200,000 to be used to fund government operations in the future Required: Prepare the fund balance section of the Balance Sheet. Fund Balances Non-spendable: Restricted: Committed: Unassigned: Total Fund Balance: 46. (6 pts) The Village of Naples has $19,000 of purchase orders outstanding at the end of 2013 which will be honored. The goods and supplies were received during the second week of January, 2014. The invoice amounted to $18,800. What are the journal entries necessary to re-establish the encumbrance and record receipt of the supplies? Account Debit Credit 47. (8 pts) Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries. In order to reimburse the county for expenditures for administering the Tax Agency Fund, the Tax Agency Fund is to deduct two percent from the collections from the city and school district. The total amount deducted is to be added to the collections for the county and remitted to the County General Fund. 1. Current year tax levies to be collected by the Tax Agency Fund were: 2. In the first half of the year $4,120,000 was collected for the County General Fund, $3,456,000 for the Town and $4,608,000 for the School District. 3. Liabilities to all three units were recorded. Record the necessary transactions in the accounts of the Washington County Tax Agency Fund. Item Account Debit Credit 48. (10 pts) The Village of Canandaigua determined that, as of July 1, 2013, infrastructure assets estimated at $300 million were in place, with an estimated useful life of 25 years. During the year ended June 30, 2014, expenditures were $7 million for the routine maintenance of infrastructure, $3 million to extend the life of existing infrastructure, and $12 million for infrastructure additions and improvements. a) If the modified approach is used, what would be the amount charged to expense during the fiscal year ended June 30, 2014. What amount would be capitalized? b) What amount would have been charged to expense if the modified approach were not used? What amount would be capitalized