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Government-Wide Statements, Net Assets, & Journals

Government-Wide Statements, Net Assets, & Journals

Complete the following activities and submit your answers to your instructor in a Word document formatted to proper APA specifications.  Include any relevant supporting computations and explanations.

 

Part One:

 

 

Review the financial information pertaining to the City of South Pittsburgh in problem 8-10 on page 257 of your text.  Prepare, in journal form, worksheet adjustments for each of the situations outlined.

 

8-10 The City of South Pittsburgh maintains it books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations:

1. Deferred inflows of resources – property taxes of $69,400 at the end of the previous fiscal year were recognized as property tax revenue in the current year’s Statement of Revenues, Expenditures, and Changes in Fund Balance.

2. The City levied property taxes for the current fiscal year in the amount of $10,000,000. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $600,000 of the taxes had not been collected. It was estimated that $320,000 of the amount would be collected during the 60-day period after the end of the fiscal year and that $80,000 would be collected after that time. The City had recognized the maximum of property taxes allowable under modified accrual accounting.

3. In addition to the expenditures recognized under modified accrual accounting, the City computed that $175,000 should be accrued for compensated absences and charged to public safety.

4. The City’s actuary estimated that pension expense under the City’s public safety employees’ pension plan is $229,000 for the current year. The City however, only provided $207,000 to the pension plan during the current year.

5. In the Statement of Revenues, Expenditures, and Changes in Fund Balances, General Fund transfers out included $500,000 to a debt service fund, $600,000 to a special revenue fund, and $900,000 to an enterprise fund.

Part Two:

 

Review the financial information pertaining to Southern State University in problem 9-5 on pages 294 and 295 of your text.  Prepare, in good form, a Statement of Net Assets for Southern State University as of June 30, 2012.

 

9-5 Southern State University had the following, account balances as of June 30, 2015. Debits are not distinguished from credits, so assume all accounts have a “normal” balance:

Accounts receivable…………………………………………………………………………………………………………..$354,000
Accounts payable…………………………………………………… ……………………………………………265,000
Cash and cash equivalents………………………………………………………………………………………120,000
Accrued interest payable………………………………………………………………………………………….225,000
Endowment investments………………………………………………………………………………………………………..6,126,000
General obligation bonds payable (related to capital acquisition)………………………………………….1,350,000
Inventories……………………………………  …………………………………………………………………….330,000
Short-term investments—unrestricted……… …………………………………………………………………1,444,000
Net position—restricted—-nonexpendable……………………… …………………………………………..6,126,000
Restricted cash and cash equivalents……………………………………………………………………………92,000
Capital assets, net of depreciation……………………………………………………………………………..7,223,000
Revenue bonds payable (related to capital acquisition)……………………………………………………..2,200,000
Long term investments………………………………………………………………………………………….1,683,000
Long-term liabilities—current portion (related to capital acquisition)……………………………………..200,000
Net position—restricted—expendable……………………………………………………………………… 1,900,000
Net investment in capital assets……………………………………………………………………………………..?
Net positions—unrestricted…………………………………………………………………………………………?

Required:

Prepare, in good form, a Statement of Net Position for Southern State University as of June 30, 2015.

 

Part Three:

 

Review the financial transactions pertaining to the Cancer Research Center in problem 10-8 on pages 326 and 327.

 

10-8 On January 1, 2014, a foundation made a pledge to pay $30,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization as a salary supplement for a well-known researcher. On December 31, 2015, the first payment of $30,000 was received and paid to the researcher.

1. On the books of Cancer Research Center, record the pledge on January 1 in the temporarily restricted asset class, assuming the appropriate discount rate is 5% on an annual basis.  The appropriate discount factor is 4.33.

2. Record the increase in the present value of the receivable in the temporarily restricted net asset class as of December 31.

 

 

3. Record the receipt of the first $30,000 on December 31 and the payment to the researcher. Indicate in which asset class (unrestricted, temporarily restricted) each account is recorded.

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