As of January 1, 2020, the City of Summerhaven began a municipal bus operation. The adjustedtrial...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
As of January 1, 2020, the City of Summerhaven began a municipal bus operation. The adjustedtrial balance below was prepared as of December 31, 2020: Debits Credits Cash $ 45,000 2$ Investments 85,000 Supplies 20.000 Restricted Assets 30.000 Land 100,000 Land Improvements 200,000 Accumulated Depreciation-Land Improvements 10,000 Building 400,000 Accumulated Depreciation-Building 20,000 Buses 500,000 Accumulated Depreciation-Buses 50,000 Accounts Payable 45,000 Salaries Payable 15,000 Interest Payable 10,000 General Obligation Bonds Payable 800,000 Other Financing Sources-transfer in 400,000 Revenues-charges for services 360,000 Dividend and interest income 10,000 Fuel and Supplies Expense 60,000 Salaries Expense 120,000 Utilities Expense 50,000 Depreciation Expense 80,000 Interest Expense 30,000 Totals $1,720,000 $1,720,000 Additional information: Ø A transfer of $400,000 was received from the general fund in January, 2020, and was used to acquire capital assets. Ø General obligation bonds with a face value of $800,000 were sold for $800,000 on March 31, 2020. The bonds pay interest at 5% on March 31 and September 30. The bonds were used to acquire capital assets. Ø The bond indenture requires that Summerhaven set aside assets for the payment of bond principal. The general obligation bonds are serial bonds, and the first serial payment will not be paid until 2023. Restricted assets consist entirely of investments. 1 Prepare the statement of net position at December 31, 2020. 2 Prepare the capital and related financing activities section of the statement of cash flows for the year ended December 31, 2020. As of January 1, 2020, the City of Summerhaven began a municipal bus operation. The adjustedtrial balance below was prepared as of December 31, 2020: Debits Credits Cash $ 45,000 2$ Investments 85,000 Supplies 20.000 Restricted Assets 30.000 Land 100,000 Land Improvements 200,000 Accumulated Depreciation-Land Improvements 10,000 Building 400,000 Accumulated Depreciation-Building 20,000 Buses 500,000 Accumulated Depreciation-Buses 50,000 Accounts Payable 45,000 Salaries Payable 15,000 Interest Payable 10,000 General Obligation Bonds Payable 800,000 Other Financing Sources-transfer in 400,000 Revenues-charges for services 360,000 Dividend and interest income 10,000 Fuel and Supplies Expense 60,000 Salaries Expense 120,000 Utilities Expense 50,000 Depreciation Expense 80,000 Interest Expense 30,000 Totals $1,720,000 $1,720,000 Additional information: Ø A transfer of $400,000 was received from the general fund in January, 2020, and was used to acquire capital assets. Ø General obligation bonds with a face value of $800,000 were sold for $800,000 on March 31, 2020. The bonds pay interest at 5% on March 31 and September 30. The bonds were used to acquire capital assets. Ø The bond indenture requires that Summerhaven set aside assets for the payment of bond principal. The general obligation bonds are serial bonds, and the first serial payment will not be paid until 2023. Restricted assets consist entirely of investments. 1 Prepare the statement of net position at December 31, 2020. 2 Prepare the capital and related financing activities section of the statement of cash flows for the year ended December 31, 2020.
Expert Answer:
Answer rating: 100% (QA)
I have prepared statement of Net position and Capitalinvesting and related financial activities sect... View the full answer
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Posted Date:
Students also viewed these accounting questions
-
AS OF JANUARY 1 2014 Assets Equity Cash54970Common stock265640 Equity investments availableforsale241420Accumulated other comprehensive income30750 Total296390Total296390 The accumulated other...
-
Which of these organizations has not played a role in the harmonization of international accounting standards? 1. United Nations 2. Internal Revenue Service 3. International Accounting Standards...
-
As of January 1 of 2020, Claus Corporation has an E & P of $600,000. Gifford owns 320 shares of Clauss common stock (the basis of $45,000). On that date, Claus Corporation declares and...
-
Under Public Law 480, the United States sells surplus grains to developing countries, which pay in local currencies. Since the United States rarely spends all of these currencies, much of this grain...
-
Solve the initial=value problem y' = (sin x) / sin y, y(0) = / 2, and graph the solution (if your CAS does implicit plots).
-
The motion of some object is described by the equation \(x(t)=a t-b \sin (c t)\), where \(a=1.0 \mathrm{~m} / \mathrm{s}, b=2.0 \mathrm{~m}\), and \(c=4 \pi \mathrm{s}^{-1}\). This motion is being...
-
Cindy gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 110 hours. Her utility function is U(C, L) = C L. This functional form implies that Cindys...
-
Fredcos defined benefit pension plan had a PBO of $10,000,000 at the beginning of the year. This was based on a 10% discount rate (obligation discount rate). The fair value of pension plan assets at...
-
The following T-accounts record the operations of Vaughn Co.: Direct Materials Beginning Balance 29,000 ? 244,000 Ending Balance 18,000 Beginning Balance Work in Process 37,000 Direct Material ?...
-
International Foods, a U.S. company, acquired two companies in 2013. As a result, its consolidated financial statements include the following acquired intangibles: Intangible Asset Date of...
-
An evaluation of your Background of the Problem (Why countless start-up businesses fail in the US) that demonstrates a comprehensive problem to be studied. The Background of the Problem should be or...
-
A payday loan provides short-term loans ranging from \(\$ 250\) to \(\$ 2,000\). In Problems 47-50, assume the cost of the loan is \(\$ 1.00\) per day per \(\$ 100\) borrowed until the loan is...
-
In Problems 530, a. Classify the sequences as arithmetic, geometric, Fibonacci, or none of these. b. If arithmetic, give d; if geometric, give r; if Fibonacci, give the first two terms; and if none...
-
Classify each of the following as being primarily a fixed cost or a variable cost, and, if necessary, explain why you think such a classification would be difficult without more information being...
-
a. Find the first three terms of the sequences whose nth terms are given. b. Classify the sequence as arithmetic (give d), geometric (give r), both, or neither. \(s_{n}=-3+3 n \)
-
Calculate the monthly finance charge for each credit card transaction in Problems 31-34. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long....
-
Suppose that a bank trading desk has just entered into a hypothetical 2x5 "squared" FRA where the bank pays a fixed rate and receives LIBOR X LIBOR in return. For example, if LIBOR=5%, the bank would...
-
What recommendations would you make to Big Four firms to help them (1) avoid confrontations with governmental officials in an authoritarian society and (2) deal effectively with such confrontations...
-
On January 1, 2013, the Simmons Companies issued bonds with a face value of $1,000,000, a stated rate of interest of 10 percent, and a 20-year term to maturity. Interest is payable in cash on...
-
Bailey Corporation issued 10,000 shares of no-par common stock for $25 per share. Bailey also issued 3,000 shares of $40 par, 6 percent noncumulative preferred stock at $42 per share. Required a....
-
Zhao Company began operations when it acquired $40,000 cash from the issue of common stock on January 1, 2013. The cash acquired was immediately used to purchase equipment for $40,000 that had a...
-
Using the data in exercise 2, determine how many units of resources the firm will want to acquire. Data from in exercise 2 Using the information in the following table, calculate the marginal revenue...
-
What does it mean to say that the demand for resources is a derived demand? Is the demand for all goods and services a derived demand?
-
Using the information in the following table, calculate the marginal revenue product (MRP = MPP MR). Unit of Resources Total Resource Output Price Price 1 10 $5 $10 2 25 $5 $10 345 35 $5 $10 40 $5...
Study smarter with the SolutionInn App