Accouting help on essay questions
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13 (TCOs D, E, F, and G) Please list the name of the fund(s) in which each of the following transactions or events would be recorded. (1) Proceeds of $500,000 were received from a bond issue were used for the purchase of the privately owned water utility in the city. (2) Property taxes of $300,000 were designated to be set aside for the eventual retirement of the City Hall building bonds that were collected. (3) Payment of $800,000 was made to a contractor for progress made in the construction of the new City Hall building. (4) Interest of $50,000 was paid on the bonds issued for the purchase of the water utility. (5) Interest of $100,000 was paid on the bonds issued for the payment of the improvement of streets in the residential district. (6) City motor vehicle license fees of $40,000 were to be used for general street expenditures were collected. (Points : 30)
14 What is the accounting equation for a proprietary fund? What are the three components of net assets? Please explain the nature each component.
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15 (TCO I) During the fiscal year of June 2012, Jefferson General Hospital, a not-for-profit healthcare organization, had the following revenue-related transactions. (The amounts are summarized for the entire year.) (1) Healthcare services that are provided to inpatients and outpatients amounted to $9,640,000, of which $420,000 were for charity cases, $865,000 was paid by uninsured patients, and $8,355,000 was billed to Medicare, Medicaid, and other insurance companies. (2) Pharmaceutical drugs and medicines sold by the hospital pharmacy amounted to $830,000, all of which was paid by the customer or the insurance companies. (3) Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,640,000 of the $8,355,000 billed by the hospital during the year (please review transaction #1). (4) A contribution of $4,000,000 (of which is unconditional) was received in cash from a donor to construct a new facility for cancer patients. The full amount is expendable for that purpose. No activity has taken place during the current year. (5) A total of $810,000 was received from the following activities/sources: cafeteria and gift shop sales, $630,000, unrestricted transfers from the Claremont Hospital Foundation, $110,000, and fees for medical transcripts, $70,000. (6) The allowance for uncollectible receivables was increased by $1,350. Requirements: a. Record the preceding transactions in general journal form. b. Prepare the unrestricted revenues, gains, and other support section of Jefferson General Hospital’s statement of operations for the current year
16. (TCO E) Please record the following transactions in the Capital Projects Fund in the general journal for the following transactions. a. Bradley County issued $6,300,000, 5% bonds with interest payable on a semiannual basis on July 1 and January 1. The bonds sold for 103 on July 30, 2012. Proceeds from the bond issue were to be used for construction of the new sheriff station with all interest and premiums received to be used to service the debt issue. b. A state grant of $400,000 was received to help finance the construction of the sheriff station. c. The General Fund transferred $450,000 for use in the construction of the new sheriff station. d. A federal grant of $850,000 was received to help finance the construction of the new sheriff station. e. A construction contract was awarded to the Spring Construction Company in the amount of $7,500,000. f. The new sheriff station was completed on May 1, 2013, three months ahead of schedule. The construction expenditures amounted to $7,650,000. When the project was completed, the cost of the sheriff station was allocated to the following, $490,000 for land, $7,180,000 for the building, and the remainder to equipment. g. The temporary accounts of the capital projects were closed to Fund Balance-Restricted. The amounts are restricted due to the bond issue that is related to the construction of the sheriff station. The capital projects fund will be closed by transferring remaining funds to the debt service fund for repayment. (Points : 40)
17. TCO F) The following Statement of Cash Receipts and Disbursements was prepared by the bookkeeper of the City of Brookdale City Museum of Science. The museum is a component unit of the City of Glass City and must be included in the city’s financial statements. It began operations on January 1, 2012 with no liabilities or commitments and only two assets. (1) $8,000 in cash and (2) Land that was acquired for $10,000. Cash Basis 12 months Cash Receipts: Admission Fees $330,000 Loan from the Bank 60,000 Cash dividends received from stock investment 3,500 Total deposits $393,500 Cash Disbursements: Supplies $74,000 Wages 134,000 Utilities 51,000 Purchase of Equipment 80,000 Purchase of Fixtures 40,000 Interest on the Bank Loan 1,200 Total checks $380,200 Excess of Receipts Over Disbursements $13,300 Additional Information: • The loan from the bank is dated April 1 and is for a five-year period. Interest (4% annual rate) is paid on Oct. 1 and April 1 of each year, beginning Oct. 1, 2012. • The equipment was purchased on April 1, 2012 with the proceeds provided by the bank loan and has an estimated useful life of 10 years (please use the straight-line method of depreciation) for computing depreciation on the equipment. The fixtures were purchased on July 1, 2012 and has an estimated useful life of five years (please use the straight-line method of depreciation) for computing depreciation on the fixtures. • Supplies on-hand amounted to $6,200 at December 31, 2012. • All other bills and salaries related to 2012 had been paid by the close of business on December 31. Required: Please prepare a Statement of Revenues, Expenses, and Changes in Net Assets for the year ended December 31, 2012 assuming the city plans to account for its activities on the accrual basis. (Points : 40)
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