ACCT 321 SEU Government and Non Profit Accounting Worksheet

User Generated

nefranyv89

Business Finance

acct 321

Saudi electronic university

ACCT

Description

Unformatted Attachment Preview

Assignment Question(s): Q1. Realizing the need of public transportation, the government of KSA has established a legally separate public benefit corporation named Metro City Transport. In the law establishing Metro City Transport, it was authorized to appoint Metro's entire governing body. When Metro City Transport went to prepare its financial statements, two questions were raised. Was Metro City Transport a government? And if it were a government, how should it prepare its Cash flow statement? Required: a. Discuss whether Metro City Transport is or is not a governmental entity. What are the specific factors in this situation that cause Metro to be one or the other? What are the other activities that any government does for its country? b. Discuss the Standard Setters that Metro City Transport uses to prepare its Cash flow statement and what are the three standard setters that government organization should follow in preparing its Financial statements. Q2.A department of a local government began operations at the beginning of the current fiscal year with $250,000 cash. During the fiscal year, the department made cash disbursements for the following: # # # # Salaries and other personnel costs, $100,000 Office rent and utilities, $24,000 Retirement of debt principal, $10,000; payment of interest, $2,200 Purchased equipment at the beginning of the fiscal year for $30,000; the equipment is expected to last 6 years and have a salvage value of $6,000 # Photocopier rental, $10,500 Based on the preceding transactions, compute total annual expenditures for this department assuming it performs governmental-type activities and is accounted for in the General Fund. Then compute total annual expenses for this department assuming it performs activities within an Enterprise Fund. Q3. The following are the events and transactions related with a township for the year 2015. You are required to prepare necessary entries for Township for the year 2015. a. The Township adopted a budget calling for appropriations of $500,000. The estimated revenues (all property taxes) were $450,000. b. The Township sent property tax bills amounting to $450,000 to property owners. c. Property owners paid $420,000 of property taxes to the Township. d. A purchase order of $65,500 was sent to a vendor of supplies. e. The supplies ordered in transaction d. were received in good order and the accompanying invoice of $55,000 was approved. Q4. From the information below prepare Financial Statements Cash Taxes receivable, net 20,000 147,000 Investments 65,000 Due from other funds 68,000 Vouchers payable 39,000 Due to other funds 152,750 Unassigned fund balance 117,000 Estimated revenues 610,000 Appropriations 590,000 Budgetary fund balance 20,000 Revenues-taxes 590,175 Revenues-charges for services Expenditures-personal services Expenditures-supplies Expenditures-capital outlay 14,080 287,125 29,680 244,000 Transfer in from debt service fund Transfers out to capital projects fund 32,500 84,700 0 $1,555,505 $1,555,505
Purchase answer to see full attachment
Explanation & Answer:
Worksheet
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running head: ADVANCED FINANCIAL ACCOUNTING

Advanced financial accounting
Name of student
Name of professor
Institution

1

ADVANCED FINANCIAL ACCOUNTING

2

Question 1
Yes, Metro city transport is government based this is because, during the establishment of the
law, the city was given an authorization to appoint Metro to act as the entire governing body.
Therefore, all expenses and revenues will be collected and experienced only by the government.
On the other hand, since the metro city transport is a government entity, it should prepare
cashflow statement in four categories mainly; operating activity, capital and related financing
activity, operating activity and non-capital financing activity.
a. Metro city transport is a governmental entity, this is because it was given authorization to
appoint Metro to act as the entire governing body. In addition, the entity has been set up
with an aim of benefitting people from transport issues such as traffic and the government
will run the entity due to its high revenue generation capacity. There are various activities
that governments do for their countries and they entail; expenditures activities, public
welfare activities, investment activities and activities aimed at raising the status of the
citizens. This question focusses mainly on public issues and there are various activities
that government does to end public issues and they entail; provision of health tests and
check-ups at affordable prices, provision of investments that bare risk free like the
treasury bills, provision of free education, initiates the construction of bridges, flyovers
and highways and offers travelling amenities at affordable costs.
b. The Metro city Transport makes use of the Government accounting standards board in
preparation of its cashflow statement. The government accounting standard board
establishes various accounting pri...


Anonymous
Really useful study material!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags