Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1) A governmental entity is a recipient of the bequest of the multi-story office building that government intends to sell to support program activities.  Building has the historical of $425,000; a book value in the hands of the benefactor of $350,000; and a fair value of $525,000.  City had not however begun to try to sell building when its annual financial statements were issued. The city must recognize on its governmental fund financial statements, donations revenue of:

a) $-0-.
b) $350,000.
c) $425,000.
d) $525,000.

2) Wealthy philanthropist contributes three buildings to H-Town. Each of buildings has a fair market value of $5 million. H-Town plans to utilize Building 1 as a new fire station, but sell Buildings 2 and 3.

Building 2 is sold after year-end, but within availability period. Building 3 fails to sell by time H-Town issues financial statements. However, which of the following represents right way to record revenue from three buildings?

a). Dr Buildings                                            $15 million
Cr Deferred revenue                                       $5 million
Cr Revenue from donations                             $10 million
b). Dr Land held for sale                                 $10 million
Cr Deferred revenue                                        $5 million
Cr Revenue from donations                               $5 million
c). Dr Land held for sale                                   $5 million
Cr Deferred revenue                                        $5 million
d). Dr Land held for sale                                   $5 million
Cr Revenue from donations                               $5 million

Use the given information to answer the following problems.

City has a 6/30 fiscal year-end and has a policy of recognizing revenues/ expenditures when collected/paid or if expected to be collected/paid within 60 days of year-end.

City has sick leave benefit policy for its employees. Policy permits City employees one day of paid sick leave per month and allows them to collect sick leave they don't take.  Sick leave vests at a completion of fifth year of employment, and unused sick leave is paid in cash upon termination or retirement.  In fiscal year ended 6/30/07, City employees who are paid from General Fund, earned $1.4 million of sick leave, of which $.5 was taken. Of the balance, the City estimates $.1 million will be taken in the next sixty days, $.3 million will be taken in the next five years, $.2 million will vest, and $.3 million will never be taken.

3) Amount of sick pay expenditure which must appear on General Fund financial statements for the fiscal year ended 6/30/07 is

a) $ 1.4 million.
b) $ 1.3 million.
c) $ .6 million.
d) $ .5 million.

4) Amount of sick pay liability which must show on the General Fund balance sheet at 6/30/07 is

a) $.6 million.
b) $.2 million.
c) $.1 million.
d) No liability must appear.

5) Amount of sick pay expense which must show on government-wide financial statements for fiscal year ended 6/30/07 is

a) $1.4 million.
b) $1.3 million.
c) $.6 million.
d) $.7 million.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99942

Have any Question? 


Related Questions in Accounting Basics

Garner company began operations on january 1 2010 and uses

Garner Company began operations on January 1, 2010, and uses the average cost method of pricing inventory. Management is contemplating a change in inventory methods for 2013. The following information is available for th ...

Accounting assignmentaccounting is the study of how

Accounting Assignment Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

Accounting theory and contemporary issues individual case

Accounting Theory and Contemporary Issues Individual case study Assignment- Assessment Description - Learning Outcome:  Research and argue a position in regard to a contemporary issue in the accounting profession. Evalua ...

Define pat positive accounting theorytheoretical definition

Define PAT (positive accounting theory). Theoretical Definition of PAT and, implication and describe the limitation with the contribution and its significance. Write about the agency theory (An individual action is drive ...

Maher inc reported income from continuing operations before

Maher Inc. reported income from continuing operations before taxes during2014 of $790,000. $790,000 Additional transactions occurring in 2014 but not considered in the $790,000 are as follows. 1. The corporation experien ...

This is a group work and i entitle do the cash flow

This is a group work and I entitle do the cash flow analysis for Home Depot. Please no more than two pages. Assume that your Group has been hired to serve as my new Investment Advisory Team. I am looking for new investme ...

In january 2013 mitzu co pays 2650000 for a tract of land

In January 2013, Mitzu Co. pays $2,650,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $823,50 ...

Write a 600-800 word memo to your accounting committee on

Write a 600-800 word memo to your accounting committee on fraud detection discussing the 6 steps of the Proactive Method of Fraud Detection found in figure 6.1 of Chapter 6. Include methods to gather information about a ...

Assignmentxyz corporation published the following financial

Assignment XYZ Corporation published the following financial statements at the end of the year: Assume the following: All discretionary accounts that are influenced by the policy decisions are identified by ** in the abo ...

Question 1the financial statement that shows revenue and

Question 1 The financial statement that shows revenue and expenses for a period of time is the A. balance sheet. B. income statement. C. statement of owner's equity. D. statement of cash flows. Question 2 If a company's ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro