23. Which of the following funds should be used if
23. Which of the following funds should be used if
1. Specific identification method. Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows.…
Chapters 2 through 8 describe accounting and financial reporting by state and local governments. A continuous problem is presented to provide an overview of the reporting process, including preparation of fund basis and government-wide statements. The problem assumes the government is using fund accounting for its internal record-keeping and then at year-end makes necessary adjustments to prepare the government-wide statements. The problem that follows is presented in the same order as the textbook (beginning with Chapters 3, and 4). Each chapter requires the preparation of journal entries to record the events and transactions of governmental, proprietary, or fiduciary funds. For the General Fund, use control accounts for the budgetary accounts, revenues, expenditures and encumbrances. For all other funds, use separate accounts for each type of revenue and expenditure/expense. At appropriate stages, preparation of the fund and government-wide statements are required. The following funds are included in this series of problems: Governmental Funds General Special revenue—Street and Highway Fund Capital projects—City Hall Annex Construction Fund Debt service—City Hall Annex Debt Service Fund Debt service—City Hall Debt Service Fund Proprietary Funds Internal service—Stores and Services Fund Enterprise—Water and Sewer Fund Fiduciary Funds Private-purpose—Student Scholarship Fund Pension trust—Fire and Police Retirement Fund…
1. Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $276,100 for the year, and machine usage is estimated at 125,500 hours.…
(7.8) Describe GASB requirements for accounting for Investment Trust Funds. Include (a) a discussion of when the use of investment trust funds is appropriate; (b) the investments to be included and excluded; (c) the basis at which investments are to be reported; (d) reporting of realized and unrealized gains and losses on investments; and (e) financial reporting.…
Since 1973, the Financial Accounting Standards Board (FASB) has been the designated organization in the private sector for establishing standards of financial accounting. Those standards govern the preparation of financial statements. They are officially recognized as authoritative by the Securities and Exchange Commission (SEC) (Financial Reporting Release No. 1, Section 101, and reaffirmed in its April 2003 Policy Statement) and the American Institute of Certified Public Accountants (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). Such standards are important to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information.…
4. Capital assets used by an enterprise fund should be accounted for in the (Points : 10)…
The Governmental Accounting Standards Board (GASB) is the board that "sets the accounting and financial reporting standards for state and local governments, whereas the Financial Accounting Standards Board (FASB) is the standard-setter for all other entities except the federal government." (Granof, 2003, Ch 1 pp6) The GASB promotes accountability and allows the public to know the facts in regards to the uses of the resources. Inter-period equity shows whether the current-year 's revenues will pay for the current-year 's expenditures. Budgetary and fiscal compliance make sure that the funds and/or resources were used within the guidelines of the entity 's budget. Service efforts, costs, and accomplishments are shown in the financial reporting of the entities to help demonstrate the accountability with the governmental entity. (Granof, 2003, Ch 1, pp 13) The FASB sets the guidelines for non-governmental entities to provide the information on the profitability of the entity.…
ChaNoel A. Torres Acevedo Intermediate Accounting I Homework: Exercise 3-1: Apr. | 2 | Cash | 30,000 | | | | Equipment | 14,000 | | | | Christine Ewing, Capital | | 44,000 | | | | | | | 2 | No entry—not a transaction. | | | | | | | | | 3 | Supplies | 700 | | | | Accounts Payable | | 700 | | | | | | | 7 | Rent Expense | 600 | | | | Cash | | 600 | | | | | | | 11 | Accounts Receivable | 1,100 | | | | Service Revenue | | 1,100 | | | | | | | 12 | Cash | 3,200 | | | | Unearned Service Revenue | | 3,200 | | | | | | | 17 | Cash | 2,300 | | | | Service Revenue | | 2,300 | | | | | | | 21 | Insurance Expense | 110 | | | | Cash | | 110 | | | | | | | 30 | Salaries Expense | 1,160 | | | | Cash | | 1,160 | | | 30 | Supplies Expense | 120 | | | | Supplies | | 120 | | | | | | | 30 | Equipment | 5,100 | | | | Christine Ewing, Capital | | 5,100 | Problem 3-1: Journal Entries…
Revenue and expense accounts are referred to as temporary or nominal accounts because each period they are closed out to Income Summary in the closing process. Their balances are reduced to zero at the end of the accounting period; therefore, the term temporary or nominal is sometimes given to these accounts.…
References: Anonymous (2010) Facts about GASB, Governmental Accounting Standards Board, Retrieved Friday March 26, 2010 from http://www.gasb.org…
Wild, John j, and Ken Shaw, and Barbara Chiappetta. Principles Of Accounting. Mc. Graw hill, .…
The Financial Accounting Standards Board (FASB) was established in 1973 and has been granted the power to institute rules of financial accounting and reporting for businesses and not-for-profit organizations. The Governmental Accounting Standards Board (GASB), established 11 years later in 1984, took on a very similar role. This board has the power to institute rules of financial accounting and reporting for all governmental entities except for those on the federal level. With so many different colleges and universities in America today, it is important to know that higher educational state institutions follow GASB and independent institutions such as University of Phoenix follow FASB. Even though both GASB and FASB have its own mission when instituting new standards, the coexistence of these two standards boards result in recognition discrepancy, measurement, and disclosure that creates a difficult time for its users to compare and contrast the organization’s financial position.…
Financial records tell you how much income your business is generating and how it’s being spent on things like overheads and products etc. You can then create a profit and loss balance sheet, this is important so that your financial advisor can then tell you what is going good or what is going bad and from that he can direct you on what to do. If a business doesn’t keep it right with the bill then they cou8ld end up in trouble with the HM Revenue and customs (HMRC). If the business doesn’t record the cash transactions correctly then it cannot report its financial bills. The sales records will be updated regularly; this should give you a good idea on how the business is doing through sales, receiving payment, paying expenses and so on. The money going out seems to be going out faster than the money coming in then the owner or bookmaker should keep a close eye on the bank balance to ensure that they have sufficient funds for future transactions.…
While analyzing the relationship between Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) I realized that both play an important role in the accounting field. There are different objectives for each board and I will explain the similarities and differences. I will describe the role of government regulation in the application of accounting standards and reporting requirements. Finally, I will present a situation in a governmental accounting environment in which FASB standards would apply.…
company’s financial statements. He learns that sales for the first quarter of the year have dropped so…