Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The East Eanes School District engaged in, or was affected by, the following events and transactions during its fiscal year ending June 30, 2013. a.

The East Eanes School District engaged in, or was affected by, the following events and transactions during its fiscal year ending June 30, 2013. a. Teachers and other personnel earned $350,000 in vacations and other compensated absences that they did not take but for which they expect to be paid in the future. b. The district settled a suit brought by a student, agreeing to pay $3 million by December 31, 2014. c. The district issued $8 million in GO bonds to finance an addition to its high school. By year-end, it had expended $1 million in con- struction costs. d. The district signed a three-year lease for office space. Annual rent is $40,000. e. It acquired school buses and other vehicles, financing them with an eight-year capital lease. Annual lease payments are $140,000. If the district had purchased the equipment outright, the price would have been $869,371, reflecting an interest rate of 6%. f. The district transferred $500,000, representing the final year's principal payment, to a reserve fund required by the bond indenture. g. To smooth out cash flows, the district issued 90-day tax anticipation notes of $950,000. h. The district paid teachers and other personnel $150,000 for compensated absences earned in previous years.

1. Prepare the entries (as required) to record the transactions in the general fund or whatever other governmental fund seems most appropriate.

2. Prepare the entries that would be needed to reflect the transactions and events in the district's government-wide statements.

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

Clinical Audit In Physiotherapy From Theory Into Practice

Authors: Sue Barnard MSc MCSP, Gayle Hartigan

1st Edition

075063779X, 978-0750637794

More Books

Students also viewed these Accounting questions