Amal lived in the Village of Riverton, Wyoming. She is hired to become a freelance accountant...
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Amal lived in the Village of Riverton, Wyoming. She is hired to become a freelance accountant to the Village of Riverton for 2 months in September and October, 2020. One of her first task is that she is required to explain about governmental accounting and briefly about capital project, debt service and permanent fund. In the month of September, 2020, Amal was informed that the Village of Riverton decided to establish an internal service fund to account for the operations of a Print Shop. The Print Shop began operations on 1st October, 2019 the first day of the City's fiscal year. During the fiscal year ended 30th September, 2020 the following transactions occurred: (a) The General Fund made a permanent contribution of $400,000 and a long-term advance of $800,000 to the Print Shop Fund. The advance is to be repaid by the Print Shop Fund in four equal annual installments; the first installment is due on 30th September, 2020. The advance is non- interest bearing and is considered issued for the purchases of equipment. (b) During the year equipment was purchased (for cash) in the amount of $ 890,000. (c) During the year, printing supplies costing $120,000 were purchased; all but $30,000 was paid in cash. (d) Billings to departments during the year totaled $ 400,000 at selling price. All but $50,000 was received in cash. (e) The cost of supplies used during the year totaled $73,000; (f) Salaries and wages were $19,000 and utilities were $3,000 (all paid in cash) In the month of October, 2020, Amal found that the Village of Riverton determined that, as of 1st October, 2019, infrastructure assets estimated at $400 million were in place, with an estimated useful life of 25 years. During the year ended 30th September, 2020, expenditures were $16 million for infrastructure additions and improvements, $4 million to extend the life of existing infrastructure, and $10 million for the routine maintenance of infrastructure. After October 2020, Amal is in difficulty in finding job because of the effect of Covid-19 pandemic. However, fortunately, in November, 2020, Amal got an interview called by Greater Wyoming University, a private not-for-profit organization, for a new job opportunity. For the interview purposes, she is required to give a written answer on the followings: First, to explain how are not-for-profit organizations distinguished from a business, according to FASB standards. Secondly, Greater Wyoming University provided Amal with a fictitious situation. In this fictitious situation, the university only have four students. They are Alex, Brian, Casey and Danny. The students are billed for tuition and fees amounting to $ 10,000 each for fall semester. The University estimates 25% of tuition and fees will prove to be uncollectible. For the period, the University collected $ 15,000 that comes from: Alex, who paid the full amount billed, $10,000. Brian, who only paid $2,000 because he was on an assistantship and received a tuition and fee waiver. He is required to work 14 hours a week for one of the University's faculty. Casey, who paid $3,000 because of the a scholarship received through the Graduate School based on her high test scores. The scholarship waives most tuition and fees and does not require the Casey to work. Danny did not pay anything and the University could find no forwarding address to recover the fees. . . . . Amal also got another interview with Riverton Medical Centre, also located in Riverton and is a private not-for-profit hospital, for a new job opportunity. For the interview purposes, she is required to give a written answer on the followings: Firstly, in a fictitious situation for Riverton Medical Centre, at the end of December 2018, a donor pledged to make five payments of $100,000, beginning on January 1, 2019. The contributions are restricted to pay for operations in those years. The present value of these payments is $446,510, discounted at 10%. The contribution was not restricted as to purpose. Amal is required to record all entries required for 2018 and 2019, in this scenario. Secondly, she is asked to identify the three types of temporary restrictions placed on contributions to a private sector not-for-profit health care organization and outline the accounting requirements for each type. Required: Help Amal, Required: Help Amal, (a) To briefly explain about governmental accounting, capital project, debt service and permanent fund. (b) in the month of September 2020, to prepare journal entries in the general journal of the Village of Riverton Print Shop Fund to reflect the relevant transactions. Styles (c) In the month of October, 2020, regarding the infrastructure assets of the Village of Riverton, to determine what would be the amount charged to expense during the fiscal year ended 30th September, 2020, and the amount would be capitalized if; L 11. the modified approach is used. the modified approach were not used. 11. (d) In the case of Greater Wyoming University, to answer the written interview as follows: To explain how are not-for-profit organizations distinguished from a business, according to FASB standards. To prepare the journal entries to record the billing and subsequent collection or write- off for the transactions given by the Greater Wyoming University. (e) In the case of Riverton Medical Centre, to answer the written interview as follows: i Record the journal transactions given by Riverton Medical Centre. Amal lived in the Village of Riverton, Wyoming. She is hired to become a freelance accountant to the Village of Riverton for 2 months in September and October, 2020. One of her first task is that she is required to explain about governmental accounting and briefly about capital project, debt service and permanent fund. In the month of September, 2020, Amal was informed that the Village of Riverton decided to establish an internal service fund to account for the operations of a Print Shop. The Print Shop began operations on 1st October, 2019 the first day of the City's fiscal year. During the fiscal year ended 30th September, 2020 the following transactions occurred: (a) The General Fund made a permanent contribution of $400,000 and a long-term advance of $800,000 to the Print Shop Fund. The advance is to be repaid by the Print Shop Fund in four equal annual installments; the first installment is due on 30th September, 2020. The advance is non- interest bearing and is considered issued for the purchases of equipment. (b) During the year equipment was purchased (for cash) in the amount of $ 890,000. (c) During the year, printing supplies costing $120,000 were purchased; all but $30,000 was paid in cash. (d) Billings to departments during the year totaled $ 400,000 at selling price. All but $50,000 was received in cash. (e) The cost of supplies used during the year totaled $73,000; (f) Salaries and wages were $19,000 and utilities were $3,000 (all paid in cash) In the month of October, 2020, Amal found that the Village of Riverton determined that, as of 1st October, 2019, infrastructure assets estimated at $400 million were in place, with an estimated useful life of 25 years. During the year ended 30th September, 2020, expenditures were $16 million for infrastructure additions and improvements, $4 million to extend the life of existing infrastructure, and $10 million for the routine maintenance of infrastructure. After October 2020, Amal is in difficulty in finding job because of the effect of Covid-19 pandemic. However, fortunately, in November, 2020, Amal got an interview called by Greater Wyoming University, a private not-for-profit organization, for a new job opportunity. For the interview purposes, she is required to give a written answer on the followings: First, to explain how are not-for-profit organizations distinguished from a business, according to FASB standards. Secondly, Greater Wyoming University provided Amal with a fictitious situation. In this fictitious situation, the university only have four students. They are Alex, Brian, Casey and Danny. The students are billed for tuition and fees amounting to $ 10,000 each for fall semester. The University estimates 25% of tuition and fees will prove to be uncollectible. For the period, the University collected $ 15,000 that comes from: Alex, who paid the full amount billed, $10,000. Brian, who only paid $2,000 because he was on an assistantship and received a tuition and fee waiver. He is required to work 14 hours a week for one of the University's faculty. Casey, who paid $3,000 because of the a scholarship received through the Graduate School based on her high test scores. The scholarship waives most tuition and fees and does not require the Casey to work. Danny did not pay anything and the University could find no forwarding address to recover the fees. . . . . Amal also got another interview with Riverton Medical Centre, also located in Riverton and is a private not-for-profit hospital, for a new job opportunity. For the interview purposes, she is required to give a written answer on the followings: Firstly, in a fictitious situation for Riverton Medical Centre, at the end of December 2018, a donor pledged to make five payments of $100,000, beginning on January 1, 2019. The contributions are restricted to pay for operations in those years. The present value of these payments is $446,510, discounted at 10%. The contribution was not restricted as to purpose. Amal is required to record all entries required for 2018 and 2019, in this scenario. Secondly, she is asked to identify the three types of temporary restrictions placed on contributions to a private sector not-for-profit health care organization and outline the accounting requirements for each type. Required: Help Amal, Required: Help Amal, (a) To briefly explain about governmental accounting, capital project, debt service and permanent fund. (b) in the month of September 2020, to prepare journal entries in the general journal of the Village of Riverton Print Shop Fund to reflect the relevant transactions. Styles (c) In the month of October, 2020, regarding the infrastructure assets of the Village of Riverton, to determine what would be the amount charged to expense during the fiscal year ended 30th September, 2020, and the amount would be capitalized if; L 11. the modified approach is used. the modified approach were not used. 11. (d) In the case of Greater Wyoming University, to answer the written interview as follows: To explain how are not-for-profit organizations distinguished from a business, according to FASB standards. To prepare the journal entries to record the billing and subsequent collection or write- off for the transactions given by the Greater Wyoming University. (e) In the case of Riverton Medical Centre, to answer the written interview as follows: i Record the journal transactions given by Riverton Medical Centre.
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Answer a Capital project debt service and permanent fund In general governmental accounting is the process of recording classifying and summarizing fi... View the full answer
Related Book For
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
Posted Date:
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