Use information from E 23-6 to prepare a charge and discharge statement for the trust for the period September 15, 2015 through December 31, 2015. Information from E 23-6 You serve as the trustee for the Sooner XXV trust. The following transactions occur during 2015: September 15 Open the Sooner XXV trust account, depositing the $100,000 transferred from the estate of Jeff Carpenter. September 16 Deposit the $100,000 into an insured money market fund earning 5 percent annually, in accordance with the trust agreement. October 16 Deposit $417 interest received from the money market fund into the trust checking account. October 19 Write a $300 check to Puppy Paradise to cover Sooner’s November room and board costs. Costs to November 1 had been prepaid by the estate. October 27 Write a check for $22 to cover chew toys for Sooner. November 16 Deposit $417 interest received from the money market fund into the trust checking account. November 22 Write a $300 check to Puppy Paradise to cover Sooner’s December room and board costs. December 16 Deposit $417 interest received from the money market fund into the trust checking account. December 28 Puppy Paradise informs you of Sooner’s passing. Pay $700 for Sooner’s funeral and burial costs. December 31 Pay yourself the agreed $100 trust administration fee. December 31 Distribute all remaining trust principal by transferring the title to the money market fund and cash to J. J. Kara.
> Explain the three reasons the aggregate-demand curve slopes downward. Give an example of an event that would shift the aggregate-demand curve. In which direction would this event shift the curve?
> List and explain the three reasons the aggregate-demand curve slopes downward.
> Suppose an economy is in long-run equilibrium. a. Use the model of aggregate demand and aggregate supply to illustrate the initial equilibrium (call it point A). Be sure to include both short-run and long-run aggregate supply. b. The central bank raises
> A change in the expected price level shifts a. the aggregate-demand curve. b. the short-run aggregate-supply curve, but not the long-run aggregate-supply curve. c. the long-run aggregate-supply curve, but not the short-run aggregate-supply curve. d. bot
> Suppose that Americans decided to spend a smaller fraction of their incomes. What would be the effect on saving, investment, interest rates, the real exchange rate, and the trade balance?
> Suppose that a textile workers’ union encourages people to buy only American-made clothes. What would this policy do to the trade balance and the real exchange rate? What is the impact on the textile industry? What is the impact on the auto industry?
> The chapter notes that the rise in the U.S. trade deficit during the 1980s was due largely to the rise in the U.S. budget deficit. On the other hand, the popular press sometimes claims that the increased trade deficit resulted from a decline in the quali
> The government in an open economy cuts spending to reduce the budget deficit. As a result, the interest rate ________, leading to a capital ________ and a real exchange rate ________. a. falls, outflow, appreciation b. falls, outflow, depreciation c. fal
> Over the past 20 years, Mexico has had high inflation and Japan has had low inflation. What do you predict has happened to the number of Mexican pesos a person can buy with a Japanese yen?
> If a Japanese car costs 1,500,000 yen, a similar American car costs $30,000, and a dollar can buy 100 yen, what are the nominal and real exchange rates?
> Explain how an increase in the price level affects the real value of money.
> In June 2009, at the trough of the Great Recession, the Bureau of Labor Statistics announced that of all adult Americans, 140,196,000 were employed, 14,729,000 were unemployed, and 80,729,000 were not in the labor force. Use this information to calculate
> Define an internal transaction and provide an example.
> Define depreciation as it relates to a van you bought for your business.
> Why is it necessary to make an adjustment if wages for work performed for the pay period Monday through Friday are paid on Friday and the accounting period ends on a Wednesday?
> In which column of the work sheet—Income Statement (IS) or Balance Sheet (BS)—would the adjusted balances of the following accounts appear? Account IS or BS? Account IS or BS? a. Prepaid Insurance e. Accumulated D
> What is a mixed account? A contra account? Give an example of each.
> Although you printed the trial balance and financial statements to get an idea of how All About You Spa is doing financially, some accounts are not accurate. You need to make adjusting entries to provide a clearer picture of how the spa is doing. HOW TO
> Determine on which financial statement each account listed below is reported. Use the following abbreviations: Income Statement (IS), Statement of Owner’s Equity (OE), and Balance Sheet (BS). a. M. James, Capital b. Cash c. Rent Expense d. Accumulated De
> Why is it necessary to journalize and post adjusting entries?
> Your supervisor just finished a work sheet for the month of June, but all of the columns except those shown below were left unreadable because of a spilled latte. You have been asked to journalize the adjusting entries using the surviving partial work sh
> You are the bookkeeper for a small but thriving business. You have asked the owner for the information you need to make adjusting entries for depreciation, supplies, insurance, and wages. He says that he’s really busy and that what you’ve done so far is
> Your client is preparing financial statements to show the bank. You know that he has incurred a refrigeration repair expense during the month, but you see no such expense on the books. When you question the client, he tells you that he has not yet paid t
> Ride the Ducks of Seattle may seem like an unlikely name for a thriving business—but it is the name of a real business! The year-round Seattle tour company uses vehicles that can be providing a road tour one minute and plying the waters of Elliott Bay th
> The trial balance of The New Decors for the month ended September 30 is as follows: Data for the adjustments are as follows: a. Expired or used-up insurance, $425. b. Depreciation expense on equipment, $2,750. c. Wages accrued or earned since the last
> The completed work sheet for Juarez Design for the month of March is in your Working Papers, CengageNow or CLGL. Required 1. Journalize the adjusting entries. 2. Prepare an income statement. 3. Prepare a statement of owner’s equity. Assume that no addit
> What is the purpose of adjusting entries?
> The trial balance of Clayton Cleaners for the month ended September 30 is as follows: Data for the adjustments are as follows: a. Expired or used-up insurance, $800. b. Depreciation expense on equipment, $2,700. c. Wages accrued or earned since the las
> The completed work sheet for Chelsey Decorators for the month of March is in the Working Papers, CengageNow or CLGL. Required 1. Journalize the adjusting entries. 2. If using CLGL, prepare an adjusted trial balance. 3. Prepare an income statement. 4. Pr
> Journalize the following adjusting entries that were included on the work sheet for the month ended December 31. Dec. 31 Salaries for three days are unpaid at December 31, $2,700. Salaries are $4,500 for a five-day week. 31 Insurance was bought on Septem
> Journalize the adjusting entries from the partial work sheet for Newkirk Practice Exercise 4 Company as of September 30. B D. Newkirk Company Work Sheet 3 For Month Ended September 30, 20- 4 TRIAL BALANCE ADJUSTMENTS ACCOUNT NAME Cash Supplies Prepa
> Journalize the adjusting entries from the partial work sheet below for Brady Company for the month ended May 31. A H J K Brady Company Work Sheet 1 2 3 For Month Ended May 31, 20-- 4 INCOME STATEMENT BALANCE SHEET DEBIT 6 ACCOUNT NAME DEBIT CREDIT C
> Complete the work sheet for Ramey Company, dated December 31, 20--, through the adjusted trial balance using the following adjustment information: a. Expired or used-up insurance, $460. b. Depreciation expense on equipment, $870. (Remember to credit the
> A partial work sheet for Marge’s Place is shown below. Prepare the following adjustments on this work sheet for the month ended June 30, 20--. a. Expired or used-up insurance, $450. b. Depreciation expense on equipment, $750. c. Wages a
> Place a check mark next to any account(s) requiring adjustment. Explain why those accounts must be adjusted. Account Name (in trial balance order) Reason for Adjusting This Account a. Cash b. Prepaid Insurance c. Equipment d. Accumulated Depreciatio
> Classify each of the accounts listed below as assets (A), liabilities (L), owner’s equity (OE), revenue (R), or expenses (E). Indicate the normal debit or credit balance of each account. Indicate whether each account will appear in the
> List the following classifications of accounts in all of the columns in which they appear on the work sheet, with the exception of the Adjustments columns. (Example: Assets) Assets Accumulated Depreciation (with previous balance) Liabilities Capital Dra
> What is the purpose of a work sheet?
> 1. Hospital room charges for telephone and television rentals should be classified as: a Patient service revenues b Other operating revenues c Nonoperating gains d Premium fees 2. A hospital bills patients at gross rates and provides for courtesy allowa
> What are the characteristics of a government?
> Does the calculation of the federal estate tax permit any deductions?
> 1. A principal source of revenue for hospitals is from patient services. Patient services revenue for hospitals is recorded at: a Amounts actually billed to patients b The hospital’s full established rates for services provided c Amounts actually receive
> Mr. Chuck Rainy dies on May 21, 2015, and leaves his entire estate, with a fair value of $7,200,000 (after settlement of all estate expenses and liabilities) to be equally divided among his sole surviving family members, his daughters Emily and Laura, an
> Prepare journal entries to record the following transactions in the appropriate funds of a nongovernmental not-for-profit university: 1. Tuition and fees assessed total $6,000,000. Eighty percent is collected by year-end, scholarships are granted for $20
> 1. Which of the following statements is not required for nongovernmental voluntary health and welfare organizations that issue financial statements in accordance with GAAP? a Balance sheet b Statement of support, revenues, and expenses, and changes in re
> Mr. Dogbert dies on March 1, 2015, and leaves his entire estate, with a fair value of $10,600,000 (after settlement of all estate expenses and liabilities) to his sole surviving family member, his daughter Emily. REQUIRED: 1. Calculate the federal tax o
> You serve as the trustee for the Josephine Frederick testamentary income trust. The trust was created by the will of her late husband, John. Under the terms of John’s will, all assets are transferred to the trust to cover living expense
> What is the purpose of a statement of affairs, and how are assets valued in this statement?
> You serve as the trustee for the Lisa Wyatt Trust. The following transactions occur during June and July 2015: June 1 Open the trust account, depositing the $1,000,000 transferred from the estate of Cheri James into a non-in
> You serve as the trustee for the Sooner XXV trust. The following transactions occur during 2015: September 15 Open the Sooner XXV trust account, depositing the $100,000 transferred from the estate of Jeff Carpenter. Septe
> What is the accounting equation for a governmental fund?
> K.T. Tim has been appointed to serve as executor for the estate of Ms. Lisa Triciao, who passed away on August 15, 2015. Ms. Triciao’s assets consisted of the following: The probate court has ruled that other personal effects may be e
> Distinguish between governmental funds, proprietary funds, and fiduciary funds. Which funds are classified as governmental funds?
> For nongovernmental NFP, how is the expiration of a time restriction recognized?
> 1. When a temporary restriction on resources of a nongovernmental not-for-profit entity is met by the incurrence of an expense for the restricted purpose: a The expense is reported in the statement of activities as an increase in unrestricted net assets.
> For nongovernmental NFP, explain the difference between a conditional promise to give and an unconditional promise to give.
> The following information was taken from the accounts and records of the Community Society, a nongovernmental not-for-profit organization. The balances are as of December 31, 2016, unless otherwise stated: Unrestricted support—contributions.............
> If property tax bills totaling $200,000 are mailed to taxpayers and 97 percent are deemed collectible, what amount should be recorded as revenue?
> What is the authoritative status of AICPA Audit and Accounting Guides for not-for-profit and health care organizations as of 2016?
> How does one determine whether a hospital, college, or voluntary health and welfare organization should be reported in accordance with FASB standards or GASB standards?
> Identify the functional expense classifications for a university. Provide an example of each.
> Describe the reporting requirements for a governmental not-for-profit entity with both governmental and business-type activities.
> Describe the difference in a set of financial statements for a governmental university and a private not-for-profit university.
> Does the BAPCPA establish priorities for holders of unsecured nonpriority claims (i.e., general unsecured claims)?
> The following selected items were taken from the accounts of Hometown Memorial Hospital, a not-for-profit hospital, at December 31, 2016: Debits Administrative services............................................................................. $310,00
> 1. Tuition waivers for scholarships are: a Not reflected in the accounting records b Recorded in a contra revenue account c Recorded as institutional support expenses d None of the above 2. Auxiliary enterprises in a college and university include all o
> What are the major revenue groupings of hospitals? Give an example of a revenue item that would be included in each grouping.
> Is it possible to avoid estate taxation by giving assets as gifts prior to death?
> Expenses of voluntary health and welfare organizations include classifications for program services and supporting services. Explain these classifications.
> Are debt service funds used to account for debt service on all long-term obligations of a governmental unit? If not, which long-term debt obligations are excluded?
> For nongovernmental NFP, are gifts in kind always reported as unrestricted support that increases unrestricted net assets?
> For nongovernmental NFP, how are unconditional promises to give with collections due in the next period accounted for?
> Describe a transaction that would affect the general fund and the debt service fund at the same time.
> For nongovernmental NFP, explain the difference between donor-imposed conditions and donor-imposed restrictions.
> What statements are included in a set of financial statements for nongovernmental not-for-profit entities?
> Discuss the two options that not-for-profit organizations have for recording donated fixed assets.
> The reorganization value of a firm emerging from Chapter 11 bankruptcy is used to determine the accounting of the reorganized company. Explain reorganization value as used in FASB ASC 852.
> Why do governmental entities use fund accounting? How many funds might be used by a single governmental unit? How many fund types?
> Other than FASB standards and the AICPA guide, where can you find guidance on accounting and reporting issues for colleges and universities?
> When is the AICPA college guide model used?
> Are provisions for bad debts and depreciation of hospitals reported as expenses? Explain.
> Discuss the requirements for approval of a plan of reorganization.
> 1. Contributions that are restricted by a donor to a nongovernmental not-for-profit organization are reported as a part of: a Permanently restricted net assets b Temporarily restricted net assets c Unrestricted net assets d Either permanently restricted
> Which unsecured claims have priority in a Chapter 7 liquidation case? Discuss in terms of priority ranks.
> How are net patient service revenues of hospitals measured, and in which hospital financial statement are they reported?
> Health care entities frequently provide charity care to qualified individuals. How is charity care reported in the financial statements of a hospital?
> A voluntary health and welfare organization summarizes its expenses by function, as follows: Education.......................................... $20,400 Fund-raising......................................... 11,400 Management and general.................
> 1. A university that is considered a special-purpose government: a Is generally required to follow GASB standards b Is generally required to follow FASB standards c Should refer to the AICPA Audit and Accounting Guide for governmental colleges and univer
> Are contributed services reported in the statement of activities of a nongovernmental voluntary health and welfare organization?
> How do the purchases and consumption methods of accounting for inventory differ?
> How does the presentation of an enterprise major fund differ from the presentation of an internal service major fund?
> You have been hired as trustee for the testamentary trust created by the will of George Wilson. The trust is created on April 30, 2015. (Use the information provided in P 23-3 and P 23-4.) The trust initially invests the proceeds from the estate in a che
> Which fund financial statements include internal service fund data? Which government-wide statements include internal service fund data?
> What fund financial statements are needed for an enterprise fund to meet the requirements for fair presentation in accordance with GAAP? Which government-wide statements include enterprise fund data?
> What does it mean to die intestate?
> How are enterprise and internal service funds similar? How are they different?
> Do governmental financial statements indicate whether a pension plan is fully funded? Explain.
> How many columns (not including total columns) are needed for a government-wide statement of net position of a governmental unit with a general fund, two special revenue funds, three internal service funds, four enterprise funds, and a component unit? Ex
> How does a private-purpose trust fund differ from a permanent fund?
> How might an internal service fund be financed initially? How will the financing appear in the fund financial statements?
