Accounting Principles for Government and Financial Statements- Please ensure that you can correctly

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadlines.


Order a Similar Paper Order a Different Paper

– Please ensure that you can correctly come up with the answer before attempting to complete.

Option #2: Accounting principles for governments and financial statements

Part A:

Robinson County formulated a construction plan for a new public health clinic and library during fiscal year 20X7. Voters approved to spend $32 million on the new project: $30,000,000 from tax-supported bonds, $1,000,000 from an economic stimulus grant, and the remainder from future use revenues. Robinson County determined 34.375% of the total funding is required to build the library, therefore, the remainder could be used on the public health clinic. Prepare the journal entries for the following transactions in the Robinson County Construction Fund and the governmental activities general journal at the government-wide level. Construct a Robinson County balance sheet and statement of revenues, expenditures, and changes in fund balances for the year ended December 31, 20X7. Design the Robinson County’s government-wide statements of net position and activities to show the capital expenditures for the public health clinic facility and library.

1. Bond anticipation notes were issued for $100,000 at 6% to cover preliminary planning and engineering expenses.
2. Architecture and engineering costs were incurred in the amount of $60,000. They were split evenly between the two projects. Entered into a construction contract for $32 million—$21 million was for the public health facility and $11 million was related to the library.
3. $30 million, 20-year 5% bonds were issued at 101. Record the premium in debt service fund. Bond anticipation notes were paid off after being outstanding for 180 days. Apply interest to the capital projects fund as an expenditure.
4. The contractor received an invoice for $16 million: $10 million for public health facility and $6 million for the library.
5. Although there was no guarantee received by the grantor for the 20X8 portion of the grant funds, half was received in cash.
6. An initial construction invoice was received minus a 5% reduction.
7. A final invoice for the remaining $5 million was received after completion of the library. Library construction can be capitalized as buildings.
8. Inspection was completed on the library and total balance of invoices was paid.
9. Although the public health facility was not complete, the contractor sent another bill at the end of the year bill for $7.5 million.
10. Assuming all fund balances are restricted, close temporary accounts at year-end.

Capital project funds vary in size, but usually have similar key components including capital asset acquisition, maintenance, depreciation, impairment, and disposition. Robinson County prepares their year budget before the end of 20X7. Robinson County considers other major capital projects, for example, a new fire station and a recreational facility. To get these items added to the capital projects fund, they must prepare estimates for these transactions in the upcoming year. Prepare the journal entries for the following estimated transactions to submit for approval to the City Manager.

  • Robert Lee sent the City Manager a letter stating his intentions to donate land with a fair value of $2,000,000 for the development of a new fire station and recreational facility.
  • Robinson County could sell their outdated treadmills to get $5,010 towards new treadmills in the new recreational facility. The historical cost of the equipment was $32,400 and it is fully depreciated.
  • The City Manager discovered the new equipment was not compatible with the old technology, which allowed the treadmills to connect to kindle, Netflix, and YouTube during workouts. Once the treadmills were sold, this would result in an impairment loss of $52,000.

Part B:

Case Study – The Expert Witness Dilemma https://hbsp.harvard.edu/tu/9dbc59a6

Answer the following case questions:

  • Based on your review of the county’s financial statements, was the county actually using the modified approach at the time of the bankruptcy filing? In what part of the financial statements would you look in order to make the determination?
  • What is the reporting requirement of GASB 34 as it relates to depreciation expense of infrastructure assets of a governmental entity on its financial statements?
  • If you were the federal bankruptcy judge in this case, how would you rule on the county’s attempt to use the modified approach in GASB 34 to justify the expenses of several very large expenditures on infrastructure assets rather than capitalizing those expenditures?

Paper Requirements:

  • Submit your responses to the questions in a 3-5-page Microsoft Word document. Label Part Aand Part B clearly in your paper. Include computations in a table and show work.
  • For written answers, ensure your responses are well-written.
  • Be sure to follow the APA formatting guidelines

"Is this question part of your assignment? We can help"

ORDER NOW
Writerbay.net

Need help with an assignment? We work for the best interests of our clients. We maintain professionalism and offer brilliant writing services in most of the fields ranging from nursing, philosophy, psychology, biology, finance, accounting, criminal justice, mathematics, computer science, among others.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper