Preston Village engaged in the following transactions:
- It issued $20 million in bonds to purchase a new municipal office building. The proceeds were recorded in a capital projects fund.
- It acquired the building for $20 million.
- It recognized, as appropriate, $300,000 of depreciation on municipal vehicles.
- It transferred $2,060,000 from the general fund to a debt service fund.
- It paid $60,000 in interest on long-term debt and repaid $2 million of principal on the same long-term debt.
- It sold for $5 million village land that had been acquired for $4 million. The proceeds were recorded in the general fund.
Instructions:
Answer the following question based on the transactions outlined above.
- For each of the transactions, prepare journal entries to record them in appropriate governmental funds (which are accounted for on a modified accrual basis).
- Prepare journal entries to reflect how the transactions would be reflected in government-wide statements (which are prepared on a full accrual basis).
- How can governments justify preparing two sets of financial statements, each on a different basis?
Requirements:
- Submit your responses to the following questions in a 1-2 page document in MS Word. Label each question clearly. Please include computations in a table.
- For written answers, please make sure your responses are grammatically correct and free from spelling errors.
Order Management
15%
get 15% discount on your first order
code:first15
Premium Service
- 100% Custom papers
- Any delivery date
- 100% Confidentiality
- 24/7 Customer support
- The finest writers & editors
- No hidden charges
- No resale promise
Format and Features
- Approx. 275 words / page
- All paper formats (APA, MLA, Harvard, Chicago/Turabian)
- Font: 12 point Arial/Times New Roman
- Double and single spacing
- FREE bibliography page
- FREE title page
0% Plagiarism
We take all due measures in order to avoid plagiarisms in papers. We have strict fines policy towards those writers who use plagiarisms and members of QAD make sure that papers are original.