Gov and Non-Profit Comp Problem

8-13 PART 1 SOLUTIONS TO THE EXCEL BASED EXERCISES ARE ALSO AVAILABLE IN EXCEL ON THE INSTRUCTOR’S WEBSITE

WORKSHEET JOURNAL ENTRIES TO CONVERT TO THE ACCRUAL BASIS OF ACCOUNTING A. CAPITAL ASSETS (NET) 7,752,000 NET ASSETS BEGINNING OF YEAR 7,752,000 DEPRECIATION EXPENSE 315,000 CAPITAL ASSETS (NET) 315,000 CAPITAL ASSETS (NET) 616,600 CAPITAL OUTLAY (EXPENDITURE) 616,600 B. NO BEGINNING LONG TERM DEBT - - PROCEEDS FROM SALE OF BONDS 700,000 PROCEEDS FROM BOND PREMIUM 15,000 BONDS PAYABLE 700,000 BOND PREMIUM 15,000 BONDS PAYABLE 17,500 EXPENDITURE - PRINCIPLE ON BONDS 17,500 INTEREST EXPENSE 10,238 INTEREST PAYABLE 10,238 INTEREST FROM OCT. 1 TO DEC. 31 (700,000 - 17,500) * 6% * 3/12 = 10,238 PREMIUM ON BONDS PAYABLE 1,500 INTEREST EXPENSE 1,500

C. DEFERRED PROPERTY TAXES 19,150 PROPERTY TAX REVENUE 19,150 PROPERTY TAX REVENUE 18,700 NET ASSETS BEGINNING OF YEAR 18,700 D. TRANSFERS IN 53,500 TRANSFERS OUT 53,500 PART A CONTINUED E. CASH 12,300 DUE FROM OTHER FUNDS 19,800 SUPPLIES INVENTORY 7,500 CAPITAL ASSETS (NET) 19,500 ACCOUNTS PAYABLE 2,300 WAGES PAYABLE 420 INTEREST PAYABLE 600 BANK NOTE PAYABLE 12,000 ADVANCE FROM ENTERPRISE FUND 16,000 NET ASSETS 27,780 NET ASSETS 3,180 GENERAL GOVERNMENT EXPENDITURES 3,180 INTEREST EXPENSE 600 NET ASSETS 600 JEFFERSON COUNTY STATEMENT OF