Question: Select the best answer to the following

> Refer to the GulfGolf problem described in Section 2.1. Suppose that management encounters each of the following situations: a. The accounting department revises its estimate of the profit contribution for the deluxe bag to $18 per bag. b. A new low-cos

> Refer to the computer solution in Figure 3.15 (see Problem 8). a. Calculate the ranges of optimality for the objective function coefficients. b. Interpret the ranges in part (a). c. Interpret the range of feasibility for the right-hand sides. d. How muc

> The city of Binghamton is served by two major hospitals: Western Medical and Binghamton General. Western Medical is located in the southwest part of the city, and Binghamton General is in the northeast. Bob Jones, the hospital administrator at Western Me

> Packer City’s balance sheet and statement of revenues, expenditures, and changes in fund balances are shown below for the governmental funds. Information on capital assets and long-term obligations are also provided from the notes to the financia

> In several instances, Neibler Corporation has been engaged in transactions that were denominated or settled in foreign currencies (FC). Given recent volatility in exchange rates between the U.S. dollar and the FC, the company is considering using FC de

> The chief financial officer (CFO) of Baxter International has employed the use of hedges in a variety of contexts over the first quarter of the current calendar year as follows: Futures Contract—The company hedged against a possible decline in t

> Belhurst purchased land costing $65,000 for park development. The amount had been encumbered at $70,000. Ten years later, because of a population shift, the park is no longer practical. The city sells the land for $105,000. Prepare journal entries to rec

> Given the facts of Exercise 8, (1) prepare the charge and discharge statement that would have resulted from the above events and (2) prepare the entries to transfer all estate principal and income amounts to a trust for the benefit of Cody Jackson.

> Record the following events of Brooks Hospital: 1. Patients were billed for the following gross charges: Room and board . . . . . . . . .. $400,000 Physicians’ care. . . . . . . . . . . . . 350,000 Laboratory and radiology . . . . . 110,000 2. A donati

> Record the following events of Mental Health Clinic, a VHWO: 1. A contribution of $20,000 was received and is to be used for the purchase of equipment, but not until an addition to the building is constructed. Construction has begun on the building. 2. E

> Logan Manufacturing has been challenged by increasing costs and pressures from competitors. Pretax income was $100,000 and $60,000 in 2015 and 2016, respectively. In 2017, the company reported first-quarter pretax income of $40,000 and forecasted pretax

> Record the following events of Chemical Dependency Clinic, a VHWO: 1. Membership dues of $9,000 were collected. 2. Cash contributions of $22,000 and pledges for $32,000 were received. 3. It is estimated that 10% of the above pledges will prove uncollecti

> Wellington Manufacturing manufactures industrial ovens used primarily in the process of coating or painting metals. The ovens are sold throughout the world, and units are manufactured to customers’ specifications. On June 15, the compan

> A partial balance sheet of Tree State University, a public university, as of the end of its fiscal year, July 31, 2018, is as follows: The following information pertains to the year ended July 31, 2019: a. Cash collected from studentsâ€&#153

> From the following information, prepare a statement of activities for the city of Rose as of June 30, 2019. Expenses: General government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $1,300,000 Pu

> The pre closing trial balance of Excel Private College has the following balances: Required 1. Prepare closing entries for the three net asset classifications. 2. Prepare a statement of activities for the year ended December 31, 2018, using a column f

> The following events occurred as part of the operations of Craig State University, a public university: 1. To construct a new computer complex, the university floated at par a $22,000,000, 7% serial bond issue on October 1, paying interest on June 30 and

> You are given the following post-closing trial balance for the Special Assessment Capital Projects Fund of the city of Stone Creek as of January 1, 2018. The project was started last year and should be completed in June of 2018. The special assessments

> Super Senior Agency is a VHWO. The following events occurred during the year. The agency uses one control account for its fixed assets, with supporting subsidiary records. 1. Property was purchased for $200,000. A down payment of $40,000 was made from un

> Problem 21-5 presents the balance sheet of St. John Corporation as of the end of the prior year. Assume that the company is not able to service its debts and is unable to secure any significant restructuring arrangements from its primary lenders. As a re

> Laurel Rose has been the personal representative of her brother’s estate since his death on February 1 of the current year. The following events, all of which occurred in the current year unless otherwise stated, occurred during her administration: 1. In

> Eleanor Matsun died on June 1 of the current year, leaving a valid will with James Madison being named as her personal representative. All of the following occurred in the year of her death: a. The personal representative prepared the following inventory

> The following nominal accounts were extracted from the December 31, 2018, adjusted trial balance of Prospect Private Hospital: Required Prepare a statement of activities for the year ended December 31, 2018. Debit Credit Gross Patient Service Reven

> Tebon Manufacturing is considering seeking relief under Chapter 7 of the Bankruptcy Code. However, the company would prefer to engage in out-of-court activities that would allow for a restructuring of debts in an orderly manner. Before approaching its cr

> Calvin Hughes’s will have provided for the following distributions: a. The 40-acre parcel in Leona, Wisconsin, is to be given to The Nature Conservancy along with $50,000. b. My 1970 GTO Pontiac convertible along with my 1937 Chevrolet pickup truck are t

> Roger Kramer’s wife Sarah passed away five years ago, and she made Roger promise to continue to provide care for Sarah’s sister Margaret Smith and let her live in their residence for a period of time. Roger and Sarah had no children, and Margaret Smith w

> Determine the correct value for each of the following questions: 1. Assume that an individual gives cash to the following parties: $25,000 to a charitable organization, $15,000 to her grandson for his college tuition, $8,000 to her granddaughter to buy a

> Determine the correct value for each of the following questions: 1. Assuming that a single person has made taxable lifetime gifts of $1.2 million, what is the largest taxable estate that could exist and still not incur any estate tax? 2. Helen made separ

> A hospital has three revenue-controlling accounts: Patient Service Revenues, Other Operating Revenues, and Non operating Revenues. 1. State in general terms the type of revenues found in each controlling account. 2. Indicate into which of the three contr

> Record the following capital-related transactions for Private University plant funds: 1. Transfers of $250,000 are received from the current unrestricted fund for the purpose of funding the payment of existing debt principal ($50,000) and building an add

> Record the following annuity and life income activities of Private University: 1. On July 1, 2019, R. W. Fields, emeritus professor of accounting, moved out of the state. Fields donated to the university common stock with a cost basis of $40,000 and a fa

> Record the following endowment activity events of Private University: 1. An alumnus donates $250,000 to the endowment fund. The cash is fully invested in bonds with a face value of $242,000 that are purchased at an $8,000 premium. The income earned is to

> Record the following events that affect the loan activities of Private University: 1. An alumnus donates $420,000 to establish the student loan fund. Students are charged a 5% annual interest rate. 2. Loans of $380,000 are made to students. 3. The remain

> Record the following operating activities: 1. Student fees of $600,000 were assessed, of which $575,000 has been collected and $4,000 is estimated to be uncollectible. 2. The bookstore operates in rented space and is run on a break-even basis. Revenues t

> Record the following events that affect (1) Public University and (2) Private University: a. A private grant of $200,000 was received to be used exclusively for defraying costs of holding conferences on the topic of genes. b. By year-end, $110,000 of t

> A large corporate farming operation is holding an inventory of corn and wheat and is concerned that excess harvests this season will lower the value of the commodities. In order to hedge against adverse market changes, the corporation acquired the follow

> Alpha Hospital, a nongovernmental not-for-profit organization, has adopted an accounting policy that does not imply a time restriction on gifts of long-lived assets. For items (1) through (6), indicate the manner in which the transaction affects Alpha’s

> Recover Rehabilitation Hospital has the following balances that are extracted from its December 31, 2019, trial balance: From the above information, prepare a statement of activities for the year ended December 31, 2019. Account Debit Credit Nursin

> Transactions (a) through (e) took place in Stoney Heights Private Hospital during the year ending December 31, 2019. a. Gross revenues of $5,000,000 were earned for service to Medicare patients. b. Expected contractual adjustments with Medicare, a third-

> Indicate with choices (a) through (f) how the following events are recorded in a private university: a. Credit Contributions—Unrestricted b. Credit Contributions—Temporarily Restricted c. Credit Contributions—Permanently Restricted

> Record the following events of Mayo Health Clinic, a VHWO: 1. In her will, a leading citizen left a bequest of $400,000 to the clinic. Stipulations were that the amount was to become the corpus of a permanent endowment. Any income received would be used

> Whole Life Clinic is a VHWO that has three main programs Drug rehabilitation Alcohol recovery Weight control Unrestricted public support received during the period was $35,000; revenues from membership services were $12,000. The following expenses and al

> Select the best answer for each of the following multiple-choice items dealing with not-for-profit organizations: 1. Which of the following criteria would suggest that a not-for-profit capitalize its works of art, historical treasures, or similar assets?

> Distinguish between accounting and financial reporting for state and local governments and VHWOs for the following issues: 1. Measurement focus and basis of accounting 2. Revenue recognition 3. Depreciation expense 4. Capital assets

> Early in 2018, a not-for profit organization received a $4,000,000 gift from a wealthy benefactor. This benefactor specified that the gift be invested in perpetuity with income restricted to provide speaker fees for a lecture series named for the benefac

> What are the rules for recording infrastructure under the new GASB reporting model? When are these rules effective? What conditions must exist in order to use one method versus another? What are the advantages and disadvantages of each approach?

> Millikin Corporation decided to hedge two transactions. The first transaction is a forecasted transaction to buy 500 tons of inventory in 60 days. The company was concerned that selling prices might increase, and it acquired a 60-day option to buy invent

> Select the best answer to the following multiple-choice questions: 1. Which of the following statements is correct concerning a governmental entity’s combined statement of cash flows? a. Cash flows from capital financing activities are

> List some of the major adjustments required when converting from fund financial statements to government wide statements. Why are these adjustments necessary?

> Assume Boulder City has the following fund structure: General fund Special revenue fund (3) Capital projects fund (2) Debt service fund (4) Expendable trust funds (3) Internal service funds (3) Enterprise funds (6) General fixed assets account group Gene

> Based on the information presented in the 2013 city of Milwaukee, Wisconsin, financial statements, list the major funds disclosed by the city. How were these funds determined? Likewise, what minimum amounts of which statement items were used to determine

> On January 1, 2018, Jack Bauer donated $200,000 to the city of Alexander to be set aside as a trust fund for water quality improvements made by the city. The funds were fully invested in bonds purchased at a premium with a face value of $194,000. During

> Prepare journal entries to record the following events in the city of Rosewood’s Water Commission enterprise fund: a. From its general fund revenues, the city transferred $300,000, which is restricted for the drilling of additional wells. b. Billings for

> Prepare journal entries required by a debt service fund to record the following transactions: a. On January 2, a $5,000,000, 6%, 10-year general obligation serial bond issue is sold at 99. Interest is payable annually on December 31, along with one-tenth

> This exercise is based on the facts of Exercise 5 for the town of Bayview’s special assessment project. Assume special assessment property owners make the required payments to the debt service fund, and the debt service fund, in turn, makes the payments

> In 2018, the town of Bayview authorized the construction of two concrete roadways. The public works department estimates the project cost at $400,000, $20,000 of which is transferred from the general fund to the capital projects fund. The balance will be

> At the beginning of the current year, Skeeba Manufacturing borrowed $10 million to be repaid over the next five calendar quarters with quarterly payments of $2,090,893.23 based on a fixed annual interest rate of 6.0%. Concerned that variable interest rat

> Prepare journal entries to record the following events. Identify every fund(s) or group of accounts in which an entry is made. a. The city authorized the construction of a city hall to be financed by a $6,000,000 contribution of the general fund and the

> Select the best response for each of the following multiple-choice questions that refer to the transactions of Beloit City. (No. 4 is AICPA adapted.) On March 2, 2018, Beloit City issued 10-year general obligation bonds at face amount, with interest paya

> Select the best answer for each of the following multiple-choice items. (Nos. 4, 7, and 10 are AICPA adapted.) 1. In which of the following fund types of a city government are revenues and expenditures recognized on the same basis of accounting as the ge

> Select the best answer for each of the following multiple-choice items. (Nos. 1, 2, 4, 6, 9, and 10 are AICPA adapted.) 1. Which of the following statements is incorrect concerning a governmental entity’s statement of cash flows? a. Ca

> Prepare the entries to record the following general fund transactions for the village of Del Valley for the year ended September 30, 2018: a. Revenues are estimated at $520,000; expenditures are estimated at $515,000. b. A tax levy is set at $378,788, of

> You are maintaining a subsidiary ledger account for Firefighter-Training Expenditures for 2018. The following columns are used: Inventory purchases are initially recorded as expenditures (purchases method). Record the following 2018 transactions in the

> Blushing City had the following balance sheet accounts and amounts as of January 1, 2018: Inventory of supplies........................................... $ 25,000 Fund balance, non-spendable.............................. (25,000) Fund balance, assigned

> Prepare entries in the general fund for the following transactions that represent outflows of financial resources to the city of Cedar Creek in 2018: 1. Vouchers are prepared for the following items and amounts: Salaries ................................

> The following information concerns tax revenues for the city of Fairfield. The balances concerning property taxes on January 1, 2018, were as follows: Delinquent property taxes receivable ................................ $105,000 Allowance for uncollect

> A Midwest food processor forecasts purchasing 300,000 pounds of soybean oil in May. On February 20, the company acquires an option to buy 300,000 pounds of soybean oil in May at a strike price of $1.60 per pound. Information regarding spot prices and opt

> Given the following information, you have been asked to record the budget for the general fund of the city of Jackson. 1. Inflows for 2018 are expected to total $402,000 and include property tax revenue of $205,000, fines of $7,000, state grants of $90,0

> Indicate the part [(a) through (e)] of the general fund statement of revenues, expenditures, and changes in fund balance affected by transactions (1) through (7). a. Revenues b. Expenditures c. Other financing sources and uses d. Residual equity transfer

> Prepare the entries that would be made in the general long-term debt account group for the following events: a. To finance the construction of an art center, $13,000,000 of general obligation term bonds were sold for $12,500,000. b. The general fund allo

> The following transactions directly affected Rose City’s general fund and other governmental funds. Prepare journal entries to reflect their impact upon the general long-term debt account group. 1. Rose City employees earned $8.8 million in vacation pay

> For the following transactions, prepare the entries that would be recorded in the general fixed assets account group for the city of Evert. a. The city purchased property costing $1,300,000, with three-fourths of the cost allocated to a building. b. A ma

> The pre closing trial balance of the general fund of Shorewood Village for fiscal year ended June 30, 2019, is as follows: 1. Prepare closing entries. 2. Prepare a budget to actual comparison schedule. (Assume there are no differences between the origi

> Select the best answer for each of the following multiple-choice questions. (Nos. 4–10 are AICPA adapted.) 1. In a governmental fund, which one of the following constitutes revenue? a. Cash received from another fund of the same unit b. Bond proceeds c.

> The following two independent cases deal with a partnership and/or partners that are insolvent. Assuming that the partners share profits and losses equally, prepare a response to each of the following independent questions: 1. Given Case A, if all of t

> Arnold (A), Bower (B), and Chambers (C) are partners in a small manufacturing firm whose net assets are as follows: The partnership agreement calls for the allocation of profits and losses as follows: a. Salaries to A, B, and C of $30,000, $30,000, a

> Twelve years ago, Adams, Boyd, and Chambers formed a partnership manufacturing small circuit boards. Unfortunately, foreign competition, a softening economy, and management errors have led the partners to realize that the company’s busi

> Casper Enterprises is forecasting two significant transactions and is concerned that adverse price movements could negatively impact these transactions. In order to hedge against adverse movements, Casper has acquired two options as described below. The

> A condensed balance sheet for a partnership to be liquidated is as follows: The profit and loss percentages for Partners A, B, and C are 50%, 30%, and 20%, respectively. For each of the following independent scenarios, determine how much of the availab

> Meyers is considering investing in one of several existing partnerships and is attempting to consider the price to be paid for a partnership interest. In addition to investing cash, Meyers would be contributing a piece of land that has a fair market valu

> Petersen, one of your clients, has indicated that Jacobsen is interested in buying Petersen’s interest in the partnership. Relevant information: Petersen has asked you a number of questions regarding selling his interest in the partne

> Freeman has been a partner in a commercial construction company for over 25 years and has finally decided to dispose of their interest in the partnership. Of the other two partners, Thierfelder and Pape, only Pape has expressed an interest in acquiring F

> Your client has been asked to invest in a partnership which will develop a piece of real estate for commercial use. It is estimated that the development will occur over three years after which time the partnership will be liquidated. After reviewing sele

> Pearson and Murphy have partner capital balances, at book value, of $45,000 and $65,000 as of December 31. Pearson is allocated 60% of profits or losses, and Murphy is allocated the balance. The partners believe that tangible net assets have a market val

> Patton is considering joining Microtech Enterprises as a partner. The company provides data imaging for a variety of end users. Patton will have to contribute $100,000 of capital upon admission as a partner and will need to decide on a profit-sharing arr

> A client of yours is seeking your help in understanding a number of issues involving various aspects of a partnership. The business under consideration is a manufacturer of custom fabricated steel building components such as fire escapes, stairways and l

> Moore, Probst, and Tanski formed a partnership whose profit and loss agreement contained provisions summarized as follows: If the weighted-average capital is negative, interest at 10% will be charged against the partner’s profit alloc

> Banyan and Schultz operate a residential construction firm as a partnership and are considering admitting Witkowski as a partner. Witkowski has recently attended a seminar on the formation and management of partnerships and is proposing that the profit-s

> Several organizations are actively involved in international standard setting. 1. Discuss the relationship between the IASB and the International Accounting Standards Committee Foundation. 2. Discuss the position of the SEC with respect to convergence to

> Walker, Hayes, and Leaky began a small manufacturing company organized as a partnership. The partnership has operated for the past two years with reported annual net income averaging $220,000 and an allocation of such income as follows: 1. Salaries to Wa

> Three individuals are considering forming a partnership to operate a metal fabricating shop. It is anticipated that significant contributions of capital will be necessary during the first 18 months of operation and that operating losses will likely be in

> Johnson, Larson, and Kragen own an advertising agency that they operate as a partnership. The partnership agreement includes the following: a. Johnson receives a salary of $50,000. b. Larson receives a salary of $60,000. c. Kragen receives no salary but

> A client of yours is forming a partnership and has asked you to review a draft of the partnership agreement. In particular, the client is interested in your thoughts regarding the section dealing with the withdrawal of a partner. Your client also anticip

> A client of yours is considering investing in a partnership and has been analyzing the financial statements of the partnership. Their analysis has resulted in the following observations that that they are hoping you could address: 1. The balance sheet do

> Murphy Oils, Inc., began as a distributor of oils and lubricants to auto and truck repair centers. Since that time, the company has expanded to include jet engine repairs, the wholesale distribution of specialized tools for the automotive repair industry

> Baxter Corporation anticipated pretax values for the current year as follows: Continuing operations. . . . . . . . . . . . . . . . . . . . . . . . $ 60,000 Non ordinary items: Item A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

> Baxter Holdings reported pretax income from continuing operations of $800,000 in the first quarter of the current year. At that point, projected pretax income for the rest of the year was $1,000,000. At the end of that quarter, the company estimated an e

> The current-year 2015 statutory tax rate is 30%. For each of the following cases, determine the 2015 year-to-date (YTD) tax benefit traceable to the YTD operating loss. Case A Case B Case C Case D Current-Year 2015 YTD operating income (loss) ...

> Richardson Company reported pretax income from continuing operations in the first six months of the current year in the amount of $100,000. Projected pretax operating income for the balance of the year is $110,000. Estimates of annual income include inco

> Harmonization of accounting standards through a private standard-setting process will have both advantages and disadvantages to American investors and businesses. 1. Discuss the advantages of harmonization to American investors. 2. Discuss why difference