Question: Nelson, Osman, Peters, and Quincy have decided

> The required steps in the accounting cycle are listed in random order below. List the steps in proper sequence. (a) Prepare a post-closing trial balance. (b) Prepare an adjusted trial balance. (c) Analyze business transactions. (d) Prepare a trial balanc

> The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available in the Investors section at www.zetarplc.com. Instructions: Describe in which stateme

> The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available in the Investors section at www.zetarplc.com. Instructions: Identify five differences

> The statement of financial position for Ruiz Company includes the following accounts (in British pounds): Accounts Receivable £12,500; Prepaid Insurance £3,600; Cash £15,400; Supplies £5,200; and Debt Investments (short-term) £6,700. Prepare the current

> The following information is available for Cole Bowling Alley at December 31, 2014. Prepare a classified statement of financial position; assume that $13,900 of the notes payable will be paid in 2015. Buildings Accounts Receivable Prepaid Insurance

> Widmer Company recently received the following information related to the company’s December 31, 2014, statement of financial position (in Swiss francs). Prepare the assets section of the company’s classified statemen

> The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available in the Investors section at www.zetarplc.com. Instructions: Visit Zetar’s corporate we

> Discuss the potential advantages and disadvantages that countries outside the United States should consider before adopting regulations, such as those in the Sarbanes-Oxley Act, that increase corporate internal control requirements.

> Describe some of the issues the SEC must consider in deciding whether the United States should adopt IFRS.

> The February 13, 2010, issue of the Wall Street Journal includes an article by Scott Thurm entitled “For Some Firms, a Case of ‘Quadrophobia’.” Instructions: Read the article and answer the following. (a) What method did the study’s authors use to deter

> The financial statements of The Hershey Company are presented in Appendix B, following the financial statements for Tootsie Roll in Appendix A. Instructions: (a) Identify two accounts on Hershey’s balance sheet that provide evidence that Hershey uses ac

> The income statement for the Four Oaks Golf Club Inc. for the month ended July 31 shows Service Revenue $16,000; Salaries and Wages Expense $8,400; Maintenance and Repairs Expense $2,500; and Income Tax Expense $1,000. The statement of retained earnings

> In alphabetical order below are balance sheet items for Burnett Company at December 31, 2014. Prepare a balance sheet following the format of Illustration 1-7 (page 14). Accounts payable…………………. $65,000

> How is interest on long-term debt accounted for in the debt service fund?

> Which governmental funds use operating budgets? Which use capital budgets?

> The initial transfer of cash from the general fund to establish an internal service fund requires the general fund to credit Cash and debit Accounts Receivable—Internal Service Fund. Transfers Out. Budgetary Fund Balance—Assigned for Enc

> In what circumstances would a governmental unit use a special revenue fund rather than a general fund?

> Required: Using the requirements of GASB 33, classify each of the following independent transactions for the community of Fair Lake into the proper category of revenue presented in the right-hand column. Transactions Types of Revenue A. Derived

> Match the items in the left-hand column with the descriptions/explanations in the right-hand column. Items Descriptions/Explanations A. Trust and agency funds. B. Fiscal and accounting entities of a government. C. Basis of accounting used by pr

> The general fund agrees to lend the enterprise fund $2,000 for three months. How is this interfund loan reported on the general fund’s financial statements?

> Where is an interfund transfer reported on the general fund’s financial statements?

> When is the expenditure for inventories recognized under the purchase method? Under the consumption method?

> Why do some governmental units not report small amounts of supply inventories in their balance sheets?

> Why do some governmental units not report small amounts of supply inventories in their balance sheets?

> When are property taxes recognized as revenue in the general fund?

> What is the basis of accounting in the proprietary funds?

> Fixed assets purchased from general fund revenue were received. What account, if any, should have been debited in the general fund? None. Fixed Assets. Expenditures. Fund Balance—Unassigned.

> Which of the two, the modified accrual basis or the accrual basis, is used for funds for which expendability is the concern? Why?

> Explain how an expenditure may be classified by (1) function, (2) activity, and (3) object within a governmental unit’s financial statements.

> What is meant by budgetary accounting? Explain the accounting for expected revenue and anticipated expenditures.

> What are the major differences between a special revenue fund and an enterprise fund?

> Compare the modified accrual basis with the accrual basis of accounting.

> What are the nine funds that local and state governments generally use? Briefly state the purpose of each fund.

> What is a fund? How does a fund receive resources?

> Refer to the information in problem 16-17. Assume the following cash amounts were received during the months of July, August, and September from the sale of DSV Partnership’s noncash assets: July …â€&brvba

> The DSV Partnership decided to liquidate as of June 30, 20X5. Its balance sheet as of this date follows: Additional Information: The personal assets (excluding partnership loan and capital interests) and personal liabilities of each partner

> The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information. The partnership’s trial balance on June 30, 20X1, is The partners share profits and l

> Select the correct answer for each of the following questions. (Note: The following information is for questions 1, 2, and 3.) The balance sheet for the partnership of Joan, Charles, and Thomas, whose shares of profits and losses are 40, 50, an

> On January 1, 20X1, partners Art, Bru, and Chou, who share profits and losses in the ratio of 5:3:2, respectively, decide to liquidate their partnership. The partnership trial balance at this date follows: The partners plan a program of piecemeal conv

> The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows: Additional Information: Each partner’s personal assets (excluding partnership capital interests) and pe

> Partnership involves an association between two or more persons to carry on a business as co-owners for profit. Items 1 through 10 relate to partnership agreements. The statement of facts for Parts A and B are followed by numbered sentences that

> The following information relates to actual results from Central Town’s general fund for the year ended December 31, 20X1: • Other cash receipts include a county grant of $100,000 for a specified purpose, of which

> Mattville’s general fund had several interfund activities during the fiscal year ended June 30, 20X9 (see the left-hand column of the following table). The right-hand column lists the types of interfund activities that occur in state an

> DeKalb City Council approved and adopted its 20X2 budget that contained the following amounts: During 20X2, various transactions and events occurred that affected the general fund. Required: For items 1 through 39, indicate whether the item shou

> Refer to the data in exercise E16-8. During the liquidation process for the APB Partnership, the following events occurred: During the first month of liquidation, noncash assets with a book value of $85,000 were sold for $65,000, and $21,000 of the l

> Give the term(s) that is (are) described in each of the following numbered statements. This is the set of financial statements that presents the governmental unit’s infrastructure assets and long-term debt. A t the present time, this body has the aut

> Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Liquidation expenses are expected to be negligible. No interest accrues on loans with part

> Refer to the facts in Problem 16-15. The partners have decided to liquidate their partnership by installments instead of accepting the $100,000 offer. Cash is distributed to the partners at the end of each month. A summary of the liquidation transactions

> Which of the following accounts of a governmental unit is credited when taxpayers are billed for property taxes? Estimated Revenue. Revenue. Appropriations. Fund Balance—Assigned for Encumbrances.

> The postclosing trial balance of the general fund of the town of Pine Ridge on December 31, 20X1, is as follows: Additional Information: Related to 20X2 Estimated revenue consisted of property taxes, $1,584,000 from a tax levy of $1,600,000 of which 1

> Partners Maness and Joiner have decided to liquidate their business. The ledger shows the following account balances: Maness and Joiner share profits and losses in an 8:2 ratio. During the first month of liquidation, half the inventory was sold for $40

> The following trial balances were taken from the accounts of Omega City’s general fund before the books had been closed for the fiscal year ended June 30, 20X2: Additional Information: The estimated taxes receivable for the year end

> After working for in the Kitchen remodeling business for several years, Terry and Phyllis decided to go into business for themselves and formed the Kitchens Just for You Partnership. Three years ago, they admitted Connie as a partner and recognized goodw

> The following information was abstracted from the accounts of the general fund of the City of Noble after the books had been closed for the fiscal year ended June 30, 20X2. Additional Information: The budget for the fiscal year ended June 30, 20X

> When Alice and Betty decided to incorporate their partnership, its trial balance was as follows: The partnership’s books will be closed, and new books will be used for A & B Corporation. The following additional information is ava

> Explain the difference between an interfund service provided and used and an interfund transfer. Give examples of each.

> Leonard and Michelle have asked you to prepare their statement of changes in net worth for the year ended August 31, 20X3. They have prepared the following comparative statement of financial condition based on estimated current values as required by ASC

> How are taxpayer-assessed income and sales taxes recognized in the general fund? Why?

> Select the correct answer for each of the following questions. (Note: The following information is for questions 1, 2, and 3.) The balance sheet for the partnership of Joan, Charles, and Thomas, whose shares of profits and losses are 40, 50, an

> Refer to the preclosing trial balance in Exercise 17-10. Assume that the balances on December 31, 20X0, were as follows: Required: Prepare a general fund–only statement of revenues, expenditures, and changes in fund balance for fis

> What are the main differences between the lapsing and nonlapsing methods of accounting for encumbrances outstanding at the fiscal year-end? What are the differences in accounting between the lapsing and nonlapsing methods when accounting for the actual e

> The preclosing trial balance at December 31, 20X1, for Lone Wolf’s general fund follows. Lone Wolf uses the purchase method of accounting for inventories and the lapsing method of accounting for encumbrances. Required:

> Not all governmental funds need to be separately presented on the governmental funds financial statements. What are the two tests for determining major governmental funds for which separate disclosure is required?

> Benson City had the following transactions involving resource outflows from its general fund for the year ended June 30, 20X8: During March 20X8, the general fund transferred $150,000 to a capital projects fund to help pay for the construction

> What are the primary differences between a permanent fund (governmental) and a private-purpose trust fund (fiduciary)?

> Gilbert City had the following transactions involving resource inflows into its general fund for the year ended June 30, 20X8: The general fund levied $2,000,000 of property taxes in July 20X7. The city estimated that 2 percent of the levy wou

> How are the proceeds from a bond issue accounted for in governmental funds? Where are these proceeds reported on the governmental funds’ statement of revenues, expenditures, and changes in fund balance?

> Prepare journal entries for Iron City’s general fund for the following, including any adjusting and closing entries on December 31, 20X1: Acquired a three-year fire insurance policy for $5,400 on September 1, 20X1. Ordered new furniture for the ci

> What financial statements must be prepared for the governmental funds? For the enterprise funds?

> Belle Valley incurred $100,000 of salaries and wages for the month ended March 31, 20X2. How should this be recorded on that date? Debit Credit a. Expenditures-Salaries and Wages Vouchers Payable 100,000 100,000 b. Salaries and Wages Expense 100,0

> Georgetown purchased supplies on August 8, 20X2, for $3,600. At the fiscal year-end on September 30, the inventory of supplies was $2,800. Required: Assume that Georgetown uses the consumption method of accounting for inventories. (1) Pr

> The financial reports of governmental entities must provide footnote disclosure of the deposit and investment risks the entity faces. GASB 40 amended GASB 3. The GASB requires disclosures of (1) the nature of the deposits and of investment risks the gov

> The City of Batavia ordered new computer equipment for $21,000 on November 3, 20X2. The equipment had not been received by December 31, 20X2, Batavia’s fiscal year-end. Required: Assume that the city has a policy that outstanding encumbra

> W hich of the following statements is correct regarding comparability of governmental financial reports? Comparability is not relevant in governmental financial reporting. Differences between financial reports should be due to substantive di

> Interperiod equity is an objective of financial reporting for governmental entities. According to the Governmental Accounting Standards Board, is interperiod equity fundamental to public administration? Is it a component of accountability? Fundame

> Encumbrances outstanding at year-end in a state’s general fund should be reported as a Liability in the general fund. Fund balance designation in the general fund. Fund balance reserve in the general fund. Liability in the gen

> For the budgetary year ending December 31, 20X6, Johnson City expects the following inflows of resources in its general fund: In the budgetary entry, what amount should Johnson City record for estimated revenues? $9,000,000 $9,500,000 $10,

> Oak City issued a purchase order for supplies with an estimated cost of $5,000. When the supplies and accompanying invoice were received, the invoice indicated a $4,950 actual price. What amount should Oak City debit (credit) to Budgetary Fund Balance—As

> The following pertains to property taxes levied by Cedar City for the calendar year 20X6: City Cedar should report revenues from property taxes for 20X6 of $700,000 $600,000 $690,000 $500,000 Expected collections duri

> The Encumbrances Control account of a governmental unit is debited when Goods are received. A voucher payable is recorded. A purchase order is approved. The budget is recorded.

> Select the correct answer for each of the following questions. One difference between accounting for a governmental (not-for-profit) unit and a commercial (for-profit) enterprise is that a governmental unit should Not record depreciation expense

> A Budgetary Fund Balance—Assigned for Encumbrances in excess of a balance of Encumbrances Control indicates An excess of vouchers payable over encumbrances. An excess of purchase orders over invoices received. A recording error.

> The governmental fund measurement focus is the determination of Financial Flow of Financial Resources Income Position Yes b. No Yes Yes No No Yes Yes а. C. No No d. No Yes

> The primary focus in accounting and reporting for governmental funds is Income determination. Flow of financial resources. Capital maintenance. Transfers relating to proprietary activities

> This case focuses on a governmental unit’s general fund. Required: Using the CAFR for a governmental entity chosen by your instructor, answer the following questions that relate to the overall government and governmental funds: Find the

> Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 5:3:2 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: The noncash assets are so

> Which of the following accounts of a governmental unit is credited to close it out at the fiscal year-end? Appropriations Control. Revenue—Property Tax. Budgetary Fund Balance—Assigned for Encumbrances. Encumbrances.

> Which of the following situations will increase a governmental unit’s fund balance at the fiscal year-end? Appropriations are less than expenditures and budgetary fund balance assigned for encumbrances. Appropriations are less than expendit

> Which of the following accounts of a governmental unit is debited when supplies previously ordered are received? Encumbrances. Budgetary Fund Balance—Assigned for Encumbrances. Vouchers Payable. Appropriations Control.

> Which of the following accounts of a governmental unit is credited when the budget is recorded? a. Encumbrances. b. Budgetary Fund Balance—Assigned for Encumbrances. c. Estimated Revenue Control. d. Appropriations Control.

> The board of commissioners of the City of Elgin adopted its budget for the year ending July 31, 20X2, which indicated revenue of $1,000,000 and appropriations of $900,000. If the budget is formally integrated into the accounting records, what is the requ

> Select the correct answer for each of the following questions. (Note: The following information is for questions 1, 2, and 3.) The balance sheet for the partnership of Joan, Charles, and Thomas, whose shares of profits and losses are 40, 50, an

> The following balances are included in the subsidiary records of Dogwood’s Parks and Recreation Department on March 31, 20X2: How much does the department have available to purchase additional supplies? $0 $2,250 $3,000 $

> Carson City’s general fund issued purchase orders of $630,000 to vendors for supplies. Which of the following entries should the city make to record this transaction? Debit Credit a. ENCUMBRANCES 630,000 BUDGE

> When a governmental unit’s Estimated Revenues Control account is closed out at the end of the fiscal year, the excess of estimated revenues over estimated appropriations is Debited to Fund Balance—Unassigned. Debited to Fund Balance—Assigned

> What account is used to earmark the fund balance to recognize the contingent obligations of goods ordered but not yet received? Appropriations. Encumbrances. Obligations. Fund Balance—Assigned for Encumbrances.

> Which of the following steps in the acquisition of goods and services occurs first? Appropriation. Encumbrance. Budget. Expenditure.

> The bookkeeper for the community of Spring Valley has asked for your assistance regarding the following items. Required: Prepare a memo discussing the proper accounting and financial reporting in the general fund for each of the following item

> Bracken, Louden, and Menser, who share profits and losses in a ratio of 4:3:3, respectively are partners in a home decorating business that has not been able to generate the income the partners had hoped for. They have decided to liquidate the business a

> Wilma Bates is executive vice president of Mavis Industries Inc., a publicly held industrial corporation. She has just been elected to Gotham City’s council. Before assuming office, she asks you to explain the major differences in accounting and financia