With regard to accounting for private not-for-profit health care entities, do the following: a. Outline the accounting required, under FASB guidance, for a (n): (1) Endowment gift received in cash. (2) Pledge received in one year, unrestricted as to purpose but restricted for use in the following year. (3) Pledge received in one year, restricted as to purpose other than acquisition of fixed assets, which is fulfilled in the following year. b. List those items required to be reported “outside” the performance indicator in the Statement of Operations.
> Distinguish between private and public sector organization.
> What bodies are responsible for establishing accounting standards for the federal government and its agencies?
> What are the required financial statements of a federal agency?
> Jefferson County established a capital project fund in 2016 to build low income housing with the transfer of $100,000 from the General Fund. A portion of that was expended on engineering studies in 2016. The following transactions occurred during 2017:
> For each of the summarized transactions for the Village of Sycamore General Fund, prepare the general ledger journal entries. a. The budget was formally adopted, providing for estimated revenues of $1,070,000 and appropriations of $996,000. b. Revenues
> Prepare budgetary entries, using general ledger control accounts only, for each of the following unrelated situations: a. Anticipated revenues are $11.1 million; anticipated expenditures and encumbrances are $9.7 million. b. Anticipated revenues are $9
> How should rainy day funds be reported?
> The City of Oxbow General Fund has the following net resources at year-end: $250,000 unexpended proceeds of a state grant required by law to be used for health education. $10,000 of prepaid insurance. $600,000 rainy day fund approved by city council fo
> The town council of Riverside estimated revenues for 2017 to be $685,000 from property taxes and $165,000 from business licenses. The appropriations budget from the council was as follows: General government…………...$370,000 Parks and recreation……………..11
> Following are transactions and events of the General Fund of the City of Springfield for the fiscal year ended December 31, 2017. 1. Estimated revenues (legally budgeted) Property taxes………&aci
> The Budgetary Comparison Schedule for the City of Vienna appears below. Several items of information are missing (denoted with “?”). Required: a. Determine the missing amounts. b. During the year, the City made a
> Appearing below is the subsidiary ledger for the public safety department of the City of Boone. After the first month of the year, five entries have been made to the ledger. Describe the most likely event that led to each of the postings (items 1â
> The following General Fund information is available for the preparation of the financial statements for the city of Eastern Shores for the year ended September 30, 2017: Revenues: Property taxes………………………………..…$27,020
> The following information is available for the preparation of the governmentwide financial statements for the city of Northern Pines for the year ended June 30, 2017: Expenses: General government………………………………………………………. $ 9,700,000 Pu
> The City of Grafton’s records reflected the following budget and actual data for the General Fund for the fiscal year ended June 30, 2017. 1. Estimated revenues: Taxes (Property)……………………………$3,213,000 Licenses and permits…………………………. 790,000 Intergovernm
> Describe the net position classification appearing on the government-wide Statement of Net Position.
> Describe how the cash flow statement of an enterprise fund differs in format from the cash flow statements of private sector organizations such as commercial businesses.
> Describe the test for determining whether a governmental fund is a major fund. Describe the test for determining whether an enterprise fund is a major fund.
> With regard to the Comprehensive Annual Financial Report (CAFR): a. What are the three major sections? b. List the government-wide statements. Indicate the measurement focus and basis of accounting used for the government-wide statements. c. List th
> With regard to GASB rules for the financial reporting entity, answer the following: a. Define the financial reporting entity. b. Define and give an example of a primary government. c. Define and give an example of a component unit. d. Define and des
> Use the CAFR information for the City of Salem (Illustrations 2-2 through 2–16) to find the following items. Each item will appear in two separate financial statements. In your answer indicate both financial statements that contained th
> The following water and sewer fund information is available for the preparation of the financial statements for the City of Western Sands for the year ended December 31, 2017: Operating revenues—charges for services ……..$18,087,000
> For each of the items below, identify which fund(s) would be used to account for the item and provide a justification for your answer. a. A city government issued general obligation bonds to finance the construction of a new jail. b. A tax of $1.00 pe
> Assume the Federal Interstate Commission began the fiscal year with the following account balances: 1. Congress passed a spending bill providing $16,000,000 to fund the agency’s operations for the year. 2. During the first quarter th
> The Budgetary Comparison Schedule for the City of Salem appears in Illustration 2-16. Assume the general and subsidiary ledgers for the General Fund were lost after a water pipe burst. You are charged with reproducing the journal entries that took place
> The Mosquito Abatement Commission is a newly organized federal agency with three primary programs: coordinating state government abatement functions, conducting research on mosquito abatement, and promoting abatement through public education. The followi
> Assume a federal agency has the following events: 1. Receives a warrant from the Treasury notifying the agency of appropriations of $3,600,000. 2. OMB apportions one-fourth of the appropriation for the first quarter of the year. 3. The director of th
> The 2012 financial statements of the Internal Revenue Service are available at: http://www.gao.gov/products/GAO-16-146 Use these to answer the following questions: a. Statement of Net Cost 1. What are the IRS’s two largest programs based on net cost?
> The 2015 financial statements of the U.S. government are available at: https://www.fiscal.treasury.gov/fsreports/rpt/finrep/fr/fr_index.htm Use these to answer the following questions: a. Statement of Net Cost 1. What are the three largest government
> What are the required financial statements of the U.S. government?
> With respect to the Single Audit Act of 1984 and amendment of 1996 relating to state and local governments and not-for-profit organizations: a. Distinguish between major and nonmajor programs. b. List the criteria used to determine whether an entity is
> You have been assigned the task of writing the audit report for the City of X. The scope includes the basic financial statements, although the report is attached to a complete Comprehensive Annual Financial Report. a. Write the opinion paragraph. b. D
> With regard to the Government Auditing Standards: a. Differentiate among the different types of professional engagements. b. Assume you are auditing a city that has a summer youth employment program. List some factors you might investigate in terms of
> Presented below are financial statements (except cash flows) for two not-for-profit organizations. Neither organization has any permanently restricted net assets. a. Calculate the following ratios: Program expense. Fund-raising efficiency. Wor
> Presented below are the computed amounts of ratios for the Village of Riverside example appearing in the chapter. * Population and property values are disclosed in the statistical section of the CAFR. a. Using the financial statements prov
> The state government established a capital project fund in 2016 to build new highways. The fund is supported by a 5 percent tax on diesel fuel sales in the state. The tax is collected by private gas stations and remitted in the following month to the Sta
> Identify the three categories of users of governmental financial statements and describe the information needs of each.
> Describe the purpose of ratio analysis. What is common size analysis?
> What is the role of a bond-rating agency?
> With regard to service efforts and accomplishments reporting, define the following terms: a. Service efforts. b. Service accomplishments. c. Inputs. d. Outputs. e. Outcomes. f. Efficiency measures. g. Cost-outcome measures.
> You and a few friends have decided to establish a not-for-profit organization in your community to help provide shelter and food to the homeless and transients. Outline the steps you would take to obtain tax-exempt status, avoid paying unrelated business
> With regard to unrelated business income tax (UBIT), answer the following questions: a. Which four conditions will automatically exempt entities from UBIT? b. What are some exceptions to UBIT provided by legislation? c. How is UBIT computed? What ded
> With regard to filing requirements for 501(c) (3) organizations: List the three types of Form 990 and indicate the size of the tax-exempt organization to use for each.
> With regard to tax-exempt organizations: a. Define a 501(c)(3) organization. b. Define a public charity
> A local government has five federal grants. Expenditures amounted to $3,000,000 during the year, as follows: Describe how you, as an auditor, would determine major programs for audit, assuming (a) The local government is not a low-risk auditee, and
> St. Joseph’s Hospital began operations in December 2016 and had patient service revenues totaling $950,000 (based on customary rates) for the month. Of this, $120,000 is billed to patients, representing their insurance deductibles and co-payments. The ba
> The state government administers a special revenue fund, the Fish and Game Fund. By legislation, revenue in this fund can be used only for the purpose of protection, propagation, and restoration of sport fish and game resources and the expenses of admini
> Record the following transactions on the books of Hope Hospital, which follows FASB (not-for-profit) and AICPA standards. The year is 2017. 1. Hope received $32,000 in cash from pledges made in the previous year that were unrestricted as to purpose but
> During 2017, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for-profit institution. 1. Gross charges for patient services, all charged to Patient Accounts Receivable, amounted to $1,800,000. Contract
> Briefly describe the following items related to financial reporting by (a) Private not-for-profit health care entities. (b) Government-owned health care entities. (c) Commercial health care entities: (1) Source of Category A and B GAAP. (2) Residual e
> For each of the following items, indicate where it would appear in the Statement of Operations for a private not-for-profit hospital: 1. The premium from a capitation agreement, whereby a hospital agrees to provide services to members of an HMO for a pr
> Describe the accounting treatment by hospitals and health care organizations for property, plant, and equipment acquisitions using each of the following: a. Unrestricted resources. b. Temporarily restricted resources.
> Describe the accounting treatment by hospitals and health care organizations for each of the following: a. Charity care. b. Uncollectible accounts. c. Contractual adjustments.
> Southeastern College began the year with endowment investments of $1,200,000 and $700,000 of restricted cash designated by a donor for capital additions. 1. During the year an additional $500,000 donation was received for capital additions. These funds,
> Eastern University had the following transactions at the beginning of its academic year: 1. Student tuition and fees were billed in the amount of $7,000,000. Of that amount, $4,500,000 was collected in cash. 2. Pell Grants in the amount of $2,000,000 w
> New City College reported deferred revenues of $482,000 as of July 1, 2016, the first day of its fiscal year. Record the following transactions related to student tuition and fees and related scholarship allowances for New City College for the year ended
> Jefferson County’s General Fund began the year 2017 with the following account balances: During 2017, Jefferson experienced the following transactions: 1. The budget was passed by the County Commission, providing estimated revenues o
> Define and outline the accounting required for each of the following types of agreements: a. Charitable lead trusts. b. Charitable remainder trusts. c. Perpetual trust held by a third party.
> Distinguish between the accounting treatment of time-restricted pledges by private and public sector colleges and universities.
> What is the role of the National Association of College and University Business Officers in providing guidance in the reporting of colleges and universities?
> For each of the following, identify (1) Which accounting standards-setting body has primary authority. (2) The required financial statements. (3) The account titles used in the equity section of the balance sheet or equivalent statement. a. Public (gov
> The Evangelical Private School follows FASB standards of accounting and reporting. Record journal entries for the following transactions during the year ended June 30, 2017. 1. Cash contributions were received as follows: (a) $1,107,000 for any purpos
> On January 1, 2017, a foundation made a pledge to pay $18,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization, as a salary supplement for a well-known researcher. On
> On January 1, the Voluntary Action Agency received a cash contribution of $325,000 restricted to the purchase of buses to be used in transporting senior citizens. On January 2 of that same year, buses were purchased with the $325,000 cash. The buses are
> Presented below is a partially completed Statement of Activities for a homeless shelter. Complete the Statement of Activities by filling in any missing amounts. (Include zero amounts.) CENTERVILLE AREA HOMELESS SHELTER Statement of Activities For
> For the following transactions and events, indicate what effect each will have on the three classes of net assets using this format. Put an X in the appropriate column. If the net assets are unaffected, leave the column blank. Ex1: Received a pledge f
> Consider FASB standards for mergers and acquisitions by not-for-profit organizations. Answer the following questions: a. What is the difference between a merger and an acquisition? b. What is the principal difference in the accounting treatment of as
> This exercise uses the same fact setting as Exercise 11-9 except that items 1 and 2 are changed to be consistent with a private institution. The Great Lakes Maritime Institute is a private not-for-profit institution preparing cadets for careers in commer
> GASB provides guidance for reporting by special-purpose entities. That guidance depends upon whether special-purpose entities are engaged in activities that are governmental-type, business-type only, or fiduciary-type only. Discuss the guidance and list
> Use the Littleton Company data in Exercise E9-34A to show how the company reported cash flows from financing activities during 2010 (the current year). List items in descending order from largest to smallest dollar amount. From exercise 34: Littleton Co
> Clublink Corp. had the following stockholders equity at October 31 (dollars in millions, except par value per share): On December 6, Clublink split its $1.50 par common stock 3-for-1. Requirement 1. Prepare the stockholders equity section of the balanc
> During 2010, Dwyer Corporation earned net income of $5.8 billion and paid off $2.4 billion of long-term notes payable. Dwyer raised $1.1 billion by issuing common stock, paid $3.5 billion to purchase treasury stock, and paid cash dividends of $1.6 billio
> Fools Gold, Inc., has the following stockholder’s equity: That company has passed its preferred dividends for three years including the current year. Compute the book value per share of the company common stock. Preferred stock, 4
> Access Garde, Inc., has 200,000 shares of $1.80 preferred stock outstanding in addition to its common stock. The $1.80 designation means that the preferred stockholders receive an annual cash dividend of $1.80 per share. In 2010, Access Garde declares an
> Sunset Drive-Ins Ltd. borrowed money by issuing $5,000,000 of 3% bonds payable at 36.5 on July 1, 2010. The bonds are 10-year bonds and pay interest each January 1 and July 1. 1. How much cash did Sunset receive when it issued the bonds payable? 2. How
> Genius Marketing Corporation reported the following stockholders equity at December 31 (adapted and in millions): During the next year, Genius Marketing purchased treasury stock at a cost of $29 million and resold treasury stock for $8 million (this tre
> Use the Mountainpeak Employment Services data in Short Exercise 9-8 to compute Mountainpeaks a. Net income. b. Total liabilities. c. Total assets (use the accounting equation).
> At fiscal yearend 2010, Horris Printer and Delectable Doughnuts reported these adapted amounts on their balance sheets (amounts in millions): Assume each company issued its stock in a single transaction. Journalize each companys issuance of its stock, u
> Assume Cookie Corner of Wisconsin, Inc., completed the following transactions during 2010, the company 10th year of operations: Requirement 1. Analyze each transaction in terms of its effect on the accounting equation of Cookie Corner of Wisconsin, Inc
> The following transactions of Harmony Music Company occurred during 2010 and 2011: Requirement 1. Record the transactions in Harmonys journal. Explanations are not required. 2010 Mar 3 Purchased a piano (inventory) for $70,000, signing a six-month,
> Use the Lawrence data in Exercise E9-50B to show how the company reported cash flows from financing activities during 2010 (the current year). List items in descending order from largest to smallest dollar amount. From exercise 50: Lawrence Company incl
> Griffin Corp. had the following stockholders equity at March 31 (dollars in millions, except par value per share): On May 3, Griffin split its $0.30 par common stock 3-for-1. Requirement 1. Prepare the stockholders equity section of the balance sheet
> Use the Eastern Corporation data in Exercise 9-41B to prepare the stockholders equity section of the company’s balance sheet at December 31, 2011. From exercise 41: At December 31, 2010, Eastern Corporation reported the stockholders eq
> The financial statements of Mountainpeak Employment Services, Inc., reported the following accounts (adapted, with dollar amounts in thousands except for par value): Prepare the stockholders equity section of Mountainpeaks balance sheet. Net income has
> Seasonal Outdoor Furniture Company included the following stockholders equity on its year-end balance sheet at February 28, 2011: Requirements 1. Identify the different issues of stock Seasonal Outdoor Furniture Company has outstanding. 2. Give the su
> Hearty Foods, Inc., is authorized to issue 5,000,000 shares of $2.00 par common stock. In its initial public offering during 2010, Hearty issued 500,000 shares of its $2.00 par common stock for $5.00 per share. Over the next year, Heartys stock price in
> The statement of cash flows of Frappe, Inc., reported the following (adapted) for the year ended December 31, 2010: Requirement 1. Make the journal entry that Frappe would use to record each of these transactions. Cash flows from financing activiti
> The following accounts and related balances of Seagull Designers, Inc., as of December 31, 2010, are arranged in no particular order. Requirements 1. Prepare Seagulls classified balance sheet in the account format at December 31, 2010. 2. Compute rate
> Assume Dessert Destination of Montana, Inc., completed the following transactions during 2010, the companys 10th year of operations: Requirement 1. Analyze each transaction in terms of its effect on the accounting equation of Dessert Destination of Mon
> Moscow Jewelry Company reported the following summarized balance sheet at December 31, 2010: During 2011, Moscow completed these transactions that affected stockholders equity: Requirements 1. Journalize Moscows transactions. Explanations are not requ
> Elegant Outdoor Furniture Company included the following stockholders equity on its year-end balance sheet at February 28, 2011: Requirements 1. Identify the different issues of stock Elegant Outdoor Furniture Company has outstanding. 2. Give the summ
> Good Foods, Inc., is authorized to issue 5,500,000 shares of $5.00 par common stock. In its initial public offering during 2010, Good issued 475,000 shares of its $5.00 par common stock for $7.00 per share. Over the next year, Goods stock price increase
> The statement of cash flows of Smoothie, Inc., reported the following (adapted) for the year ended December 31, 2010: Requirement 1. Make the journal entry that Smoothie would use to record each of these transactions. Cash flows from financing acti
> The following accounts and related balances of Hawk Designers, Inc., as of December 31, 2010, are arranged in no particular order. Requirements 1. Prepare Hawks classified balance sheet in the account format at December 31, 2010. 2. Compute rate of re
> GIT, Inc., issued $600,000 of 5%, 12-year bonds payable at a price of 77 on March 31, 2010. The market interest rate at the date of issuance was 8%, and the GIT bonds pay interest semiannually. 1. Prepare an effective-interest amortization table for the
> Garman Corp. has the following stockholders equity information: Garmans charter authorizes the company to issue 8,000 shares of 5% preferred stock with par value of $130 and 600,000 shares of no-par common stock. The company issued 1,600 shares of the pr
> London Jewelry Company reported the following summarized balance sheet at December 31, 2010: During 2011, London completed these transactions that affected stockholder’s equity: Requirements 1. Journalize Londons transactions. Explan
> The accounting records of Brilliant Foods, Inc., include the following items at December 31, 2010: Requirements 1. Show how each relevant item would be reported on the Brilliant Foods, Inc., classified balance sheet, including headings and totals for c
> Fitzpatrick Sporting Goods is embarking on a massive expansion. Assume plans call for opening 30 new stores during the next four years. Each store is scheduled to be 45% larger than the companys existing locations, offering more items of inventory, and w
> Holman Corp. has the following stockholders equity information: Holmans charter authorizes the company to issue 5,000 shares of 8% preferred stock with par value of $110 and 400,000 shares of no-par common stock. The company issued 1,000 shares of the p
