3.99 See Answer

Question: The newly formed Buffalo School District engaged

The newly formed Buffalo School District engaged in the following transactions and other events during the year: 1. It levied and collected property taxes of $110 million. 2. It issued $30 million in long‐term bonds to construct a building. It placed the cash received in a special fund set aside to account for the bond proceeds. 3. During the year it constructed the building at a cost of $25 million. It expects to spend the $5 million balance in the following year. The building has an estimated useful life of 25 years. 4. It incurred $70 million in general operating costs, of which it paid $63 million. It expects to pay the balance early the following year. 5. It transferred $12 million from its general fund to a fund established to account for resources set aside to service the debt. Of this, $10 million was for repayment of the debt; $2 million was for interest. 6. From the special fund established to service the debt, it paid $2 million in interest and $6 million in principal. 7. It collected $4 million in hotel taxes restricted to promoting tourism. Since the resources were restricted they were accounted for in a special restricted fund. During the year, the district spent $3 million on promoting tourism. 8. The district established a supplies store to provide supplies to the district’s various departments by transferring $4 million from the general fund. It accounted for the store in an internal service (proprietary) fund. During the year the store purchased (and paid for) $2 million in supplies. Of these it “sold” $1 million, at cost (for cash), to departments accounted for in the general fund. During the year these departments used all of the supplies that they had purchased. a. Prepare journal entries to record the transactions and other events in appropriate funds. Assume that governmental funds are accounted for on a modified accrual basis and focus only on current financial resources (and thus do not give balance sheet recognition either to capital assets or long‐term debts). Proprietary funds are accounted for on a full accrual basis. b. Prepare a combined balance sheet—one that has a separate column for each of the governmental funds you established. c. Prepare a combined statement of revenues, expenditures, and changes in fund balances for all governmental funds. Prepare a separate statement of revenues, expenses, and changes in fund net position for any proprietary funds you established. d. Prepare a government‐wide statement of net position and a government‐wide statement of activities in which all funds are consolidated and are accounted for on a full accrual basis. Be sure to include both long‐term assets and liabilities on the statement of net position and to depreciate the long‐term assets. Also, be sure to adjust for any interfund activity. You may find it helpful to redo the journal entries you made in Part (a), this time recording the transactions (and not the interfund activity) as if the district accounted for its activities in a single entity and on the full accrual basis.
The newly formed Buffalo School District engaged in the following transactions and other events during the year:
1. It levied and collected property taxes of $110 million.
2. It issued $30 million in long‐term bonds to construct a building. It placed the cash received in a special fund set aside to account for the bond proceeds.
3. During the year it constructed the building at a cost of $25 million. It expects to spend the $5 million balance in the following year. The building has an estimated useful life of 25 years.
4. It incurred $70 million in general operating costs, of which it paid $63 million. It expects to pay the balance early the following year.
5. It transferred $12 million from its general fund to a fund established to account for resources set aside to service the debt. Of this, $10 million was for repayment of the debt; $2 million was for interest.
6. From the special fund established to service the debt, it paid $2 million in interest and $6 million in principal.
7. It collected $4 million in hotel taxes restricted to promoting tourism. Since the resources were restricted they were accounted for in a special restricted fund. During the year, the district spent $3 million on promoting tourism.
8. The district established a supplies store to provide supplies to the district’s various departments by transferring $4 million from the general fund. It accounted for the store in an internal service (proprietary) fund. During the year the store purchased (and paid for) $2 million in supplies. Of these it “sold”
$1 million, at cost (for cash), to departments accounted for in the general fund. During the year these departments used all of the supplies that they had purchased.
a. Prepare journal entries to record the transactions and other events in appropriate funds. Assume that governmental funds are accounted for on a modified accrual basis and focus only on current financial resources (and thus do not give balance sheet recognition either to capital assets or long‐term debts). Proprietary funds are accounted for on a full accrual basis.
b. Prepare a combined balance sheet—one that has a separate column for each of the governmental funds you established.
c. Prepare a combined statement of revenues, expenditures, and changes in fund balances for all governmental funds. Prepare a separate statement of revenues, expenses, and changes in fund net position for any proprietary funds you established.
d. Prepare a government‐wide statement of net position and a government‐wide statement of activities in which all funds are consolidated and are accounted for on a full accrual basis. Be sure to include both long‐term assets and liabilities on the statement of net position and to depreciate the long‐term assets. Also, be sure to adjust for any interfund activity. You may find it helpful to redo the journal entries you made in Part (a), this time recording the transactions (and not the interfund activity) as if the district accounted for its activities in a single entity and on the full accrual basis.





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Central States Rehabilitation Hospital Balance Sheet as of December 31 (in thousands) Assets Liabilities and Fund Balances General Fund Current assets Current liabilities $ 3,200 Cash and equivalents Patients accounts receivable Supplies Accounts payable Accrued expenses Estimated third-party settlements $3,103 15,700 3,400 1,817 Other current assets 404 2,408 2,700 $11,708 Other current liabilities Total current assets $21,024 Total current liabilities Noncurrent liabilities Estimated cost of malpractice Noncurrent assets Assets whose use is limited $4,760 Long-term debt (designated) by board for capital improvements Property, plant, and equipment (net of allowance for depreciation) 34,000 $21,000 42,500 Other assets 7,300 Fund balance 41,356 70,800 $91,824 Total noncurrent assets Total liabilities and fund Total assets balance $91,824 Donor Restricted Funds Specific Parpose Funds $ 389 Accounts payable Deferred grant revenue Cash $ 205 Investments 250 80 Grants receivable 613 Fund balance 967 Total assets $ 1.252 $ 1,252 Total liabilities and fund balance Plant Replacement and Expansion Funds Cash 25 Investments 250 Pledges receivable 110 $ 385 Total assets Fund balance $ 385 Endowment Funds $ 1,600 4.200 $ 5,800 Cash Investments Total assets Fund balance $ 5,800


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3.99

See Answer