Explain how each of the following should be reported in the financial statements of an Enterprise Fund.
Question:
1. Capital grant received in cash, but not earned, $500,000
2. Capital grant earned, but not collected until 90 days after year end, $1,200,000
3. Estimated uncollectible accounts related to current year sales, $75,000
4. Deferred interest expense adjustment credit balance of $300,000 at year end
5. Amortization of deferred interest expense adjustment credit balance, $50,000
6. Reassignment at year end of a general capital asset (cost, $1,000,000 and accumulated depreciation, $350,000) as an Enterprise Fund capital asset
7. Operating grant earned and collected during the year, $89,000
8. Accrued interest on Enterprise Fund long-term bonds payable, $100,000
9. Free services provided to General Fund departments, $65,000
10. Charges for services provided to other Enterprise Funds, $20,000
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
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