Bertram County maintains a fund accounting system. Nevertheless, its comptroller (who recently retired from a position in
Question:
The fund balance restricted for debt service represents entirely principal (not interest) on the bonds payable.
1. Recast the balance sheet, as best you can, into separate balance sheets for each of the funds that are apparently maintained by the county. Assume that the county uses a modiï¬ed accrual basis of accounting that excludes recognition in its funds of both capital assets and long-term debt. Assume also that cash and investments are divided among the funds in proportion to fund balances.
2. In your opinion, which of the two presentations gives the reader a more complete picture of the countys ï¬nancial status? Why? Which presentation is easier tounderstand?
Step by Step Answer:
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala