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Acc 460 week 3 individual assignment ch. 2, 4, 5, & 6 textbook exercises
 

Acc 460 week 3 individual assignment ch. 2, 4, 5, & 6 textbook exercises

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    Acc 460 week 3 individual assignment ch. 2, 4, 5, & 6 textbook exercises Acc 460 week 3 individual assignment ch. 2, 4, 5, & 6 textbook exercises Document Transcript

    • ACC 460 Week 3 Individual Assignment Ch.2, 4, 5, & 6 Textbook ExercisesClick this link to get the tutorial:http://homeworkfox.com/questions/business/1625/acc-460-week-3-individual-assignment-ch-2-4-5-6-textbook-exercises/Ch. 2: Exercise 2-1, Questions 1 through 10The following relate to the town of Coupland (dollar amounts in thousands):• Equipment used in a vehicle repair service that provides service to other departments on a cost-reimbursement basis; the equipment has a ten-year life with no salvage value$1,400• Property taxes levied and collected $6,300• Hotel taxes (restricted to promotion of tourism) collected $1,200• Proceeds of bonds to build a parking garage that must be repaid from user charges $4,000• Proceeds of general obligation bonds to finance construction of a new city hall; the building,which was completed during the year, has a useful life of thirty years with no salvage value$9,000• Proceeds of a federal grant to hire additional police officers $1,000• Fees charged to, and collected from, customers by the electric utility $8,000Match the fund items below with the amounts that follow. An amount may be selected once,more than once, or not at all.1. Revenue to be recognized in an enterprise fund2. Revenue to be recognized in special revenue funds3. Bonds payable to be recognized in the general fund4. Bonds payable to be recognized in enterprise funds5. Depreciation expenditure to be recognized in the general fund6. Depreciation expense to be recognized in internal service funds7. Revenue to be recognized in an internal service funds8. Revenue to be recognized in the general fund9. Long-lived assets to be recognized in the general fund10. Long-lived assets to be recognized in internal service fundsa. $0b. $140c. $900d. $1,260e. $1,040f. $1,400g. $2,200h. $4,000i. $6,300
    • j. $8,000k. $8,500l. $10,400Ch. 4: Exercise 4-1, Questions 1 through 10, and Exercise 4-7, Question 1 & 24-11. Under the modified accrual basis of accounting, revenues cannot be recognizeda. Until cash has been collectedb. Unless they will be collected within sixty days of year-endc. Until they are subject to accruald. Until they are measurable and available2. ‘‘Available’’ (as in ‘‘measurable and available’’) meansa. Available to finance expenditures of the current periodb. Subject to accrualc. Collectibled. Available for appropriation3. Property taxes are an example ofa. An imposed exchange transactionb. An imposed nonexchange transactionc. A derived transactiond. A government-mandated nonexchange transaction4. To be considered ‘‘available,’’ property taxes must have been collected either during thegovernment’s fiscal year or withina. The time it takes for the government to liquidate its obligations from the prior yearb. Thirty days of year-endc. Sixty days of year-endd. The following fiscal year5. For its fiscal year ending September 30, 2007, Twin City levied $500 million in propertytaxes. It collected taxes applicable to fiscal 2007 as follows (in millions): June 1, 2006, throughSeptember 30, 2006 $ 20 October 1, 2006, through September 30, 2007 440 October 1, 2007,through November 30, 2007 15 December 2007 4The city estimates that $10 million of the outstanding balance will be uncollectible. For the fiscalyear ending September 30, 2007, how much should Twin City recognize in property tax revenue(in millions) in its general fund?a. $440b. $460c. $475d. $4906. Assume the same facts as in the previous example. How much should Twin City recognize inproperty tax revenue (in millions) in its government-wide statement of activities?a. $440b. $460
    • c. $475d. $4907. Central City was awarded two state grants during its fiscal year ending September 30, 2007: a$2 million block grant that can be used to cover any operating expenses incurred during fiscal2008, and a $1 million grant that can be used any time to acquire equipment for its policedepartment. For the year ending September 30, 2007, Central City should recognize in grantrevenue in its funds statements (in millions)a. $0b. $1c. $2d. $38. Assume the same facts as in the previous example. How much should the city recognize ingrant revenue in its government-wide statements?a. $0b. $1c. $2d. $39. Assuming that a government will collect its sales taxes in sufficient time to satisfy the‘‘available’’ criterion, it would ordinarily recognize revenue from sales taxes in its governmentalfund statementsa. When the underlying sales transaction takes placeb. On the date the merchant must remit the taxes to the governmentc. On the date the merchant must file a tax returnd. When the taxes are received by the government10. Assuming that a government will collect its sales taxes in sufficient time to satisfy the‘‘available’’ criterion, it would ordinarily recognize revenue from sales taxes in its government-wide statementsa. When the underlying sales transaction takes placeb. On the date the merchant must remit the taxes to the governmentc. On the date the merchant must file a tax returnd. When the taxes are received by the governmentExercise 4-7, Question 1 & 2The recognition of revenue from fines does not necessarily reflect the amount ‘‘earned’’ bymerely issuing tickets. In August 2008, the last month of its fiscal year, GoldwaitheTownshipissued $88,000 worth of tickets for parking and traffic violations. Of these, the townshipcollected $45,000. It expects to collect an additional $20,000 within sixty days of the close of thefiscal year and to collect $3,000 subsequent to that. It will have to write off the balance. Thetickets are due; the protest period expires on September 15.
    • 1. How much revenue should the township recognize from the tickets issued in August 2008?Explain.2. How might your answer change with respect to the township’s government-wide statements?Ch. 5: Questions for Review and Discussion 1 & 21. What is the distinction between expenditures and expenses as the terms are used ingovernmental accounting?2. A government expects to pay its electric bill relating to its current fiscal year sometime in thefollowing year. An official of the government requests your advice as to whether the anticipatedpayment should be charged as an expenditure of the current or the following year. How wouldyou respond?Ch. 6: Questions for Review and Discussion 1 & 61. Although many governments prepare budgets for both capital projects and debt service fundsand integrate them into their accounts, budgetary control over these funds is not as essential as itis for other governmental funds. Do you agree? Explain. If budgets are prepared for capitalprojects funds, in what significant way may they differ from those prepared for other funds?6. How should governments report their capital projects and debt service activities in theirgovernment-wide statements?