Question: A citizen sued a city because he was accidentally shot by a police officer. The city acknowledges responsibility for the accident, and based on ongoing

A citizen sued a city because he was accidentally shot by a police officer. The city acknowledges responsibility for the accident, and based on ongoing negotiations, the city’s attorney believes the citizen’s claim will probably be settled for about $ 75,000. The accident occurred on March 14, 2013; the government’s fiscal year ends June 30, 2013; and the city’s attorney believes settlement will be reached in about January 2014. Prepare the journal entry, if any, the city should make regarding this event when it closes its General Fund books for fiscal year 2013. To support your answer, state the principle that governs the accounting for this event in the General Fund.

Step by Step Solution

★★★★★

3.45 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

No accrual is needed to record this event in the fund financ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

374-B-A-N-P-O (282).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

The City of Fremont's fiscal year ends June 30. The city issued the following general obligation bonds: 1. On July 1, 2017, the city issued 4 percent, $100,000 face value, 10-year bonds for $108,531,...

A state whose fiscal year ends June 30, 2013, had the following transactions and events. For each item, compute how much total expenditures the state will report in the General Fund Statement of...

The City of Fremont's fiscal year ends June 30. The City issued the following general obligation bonds: 1. On July l, 2011, the City issued 5 percent, $100,000 face value, 10-year bonds for $92,640,...

A citizen sued a city because he was accidentally shot by a police officer. The city acknowledges responsibility for the accident, and based on ongoing negotiations, the city??s attorney believes the...

1. Martin brought a civil suit against Zach for injuries Martin sustained when a large, rotten branch fell off of a tree near the curb in front of Zach's home and hit Martin on the head. Zach claims...

1. Congress is concerned that a number of states are mandating the use of inaccurate textbooks that give students a warped understanding of US history. Congress therefore passes a law conditioning a...

Policing, like all professions, learns from experience. It follows, then, that as modem police executives search for more effective strategies of policing, they will be guided by the lessons of...

Read the Trust Your Gut Case Study (located in Course Information) and: 1. Describe the situation and the key players (their roles and relationship to each other) 2. Identify why this case study is...

please read the study and do not copy others case study answer thanks in advance FORU Read the Trust Your Gut Case Study (located in Course Information) and: 1. Describe the situation and the key...

Bscom/350T 58 N N N N . 0 LTE Back to my LMS Week 4 Summative Assessment Choose the best answer for each question. You will have two attempts for this assessment. Points: 100 v Your Submission:...

Desno Corporation reports on a calendar-year basis. Its December 31, 2007 financial statements were issued on February 3, 2008. The auditors report was dated January 22, 2008. The following...

Payments of $4000 each due in four, nine, and eleven months from now are to be settled by two equal payments due today and twelve months from now. What is the amount of the equal payments if interest...

Generally, the costs and risks associated with doing business in a foreign country are typically lower in Multiple Choice economically advanced countries. countries that lack intellectual property...

Charles has AGI of $39,500 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land $...

Describe general managerial cost concepts and how each is useful in classifying costs. Be prepared to provide examples of each. (and how each response to changes in activity level in total and per...

What do you think a project manager needs to do to develop a team?

Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (revenue) per procedure $100 Further more, assume that the group...

On March 1, 2019, Iron Inc., a public company, issued $800,000, 10%, 10-year bonds dated March 1, 2019, with interest payable semi-annually on March 1 and September 1. The market yield at issuance is...

Which of the following choices best describes reasonable conclusions an analyst might make about the companys solvency? A. Comparing FY14 with FY10, the companys solvency improved, as indicated by...

The FASB requires for-profit entities to classify their investments as trading, available-for-sale, or held-to-maturity. However, it does not require not-for-profit entities to do the same. What...

Differentiate between public support and revenues as sources of assets for private not-for-profit organizations. What benefit is there in accounting for these differently?

Required information [The following information applies to the questions displayed below.] On March 14 of year 1, Javier purchased a building, including the land it was on, to assemble his new...

Question 1 1 pts Your nephew, Farouk just graduated from college. He has always been entrepreneurially inclined since primary school. He started selling t-shirts and memorabilia that are hard to find...

19) The primary goal of a publicly owned corporation is to ________. A) Maximize dividends per share. B) Maximize shareholder wealth. C) Maximize earnings per share after taxes. D) Minimize...