{"id":24630,"date":"2021-01-12T05:26:30","date_gmt":"2021-01-12T05:26:30","guid":{"rendered":"http:\/\/onlineclassesguru.com\/?p=24630"},"modified":"2021-01-12T05:26:30","modified_gmt":"2021-01-12T05:26:30","slug":"comment-on-the-extent-to-which-the-citys-statement-provides-a-basis-to-assess-the-true-economic-costs-associated-with-supplies-determine-whether-the-city","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2021\/01\/12\/comment-on-the-extent-to-which-the-citys-statement-provides-a-basis-to-assess-the-true-economic-costs-associated-with-supplies-determine-whether-the-city\/","title":{"rendered":"Comment on the extent to which the city\u2019s statement provides a basis to: Assess the \u2018\u2018true\u2019\u2019 economic costs associated with supplies Determine whether the city adhered to budgetary spending mandates."},"content":{"rendered":"<style type=\"text\/css\"><\/style><h4>Comment on the extent to which the city\u2019s statement provides a basis to: Assess the \u2018\u2018true\u2019\u2019 economic costs associated with supplies Determine whether the city adhered to budgetary spending mandates.<\/h4>\n<p>Field: Business Finance \u2013 Accounting<br \/>\nOption #1: Government and Not-For-Profit Accounting Portfolio #1<\/p>\n<p>Your portfolio project will provide specific answers to questions that follow. Apply what you have learned in this course to your answers to these questions in a microsoft word document.<\/p>\n<p>P. 2-6: The nature of a transaction gives a clue as to the type of fund in which it should be recorded. (80 points)<\/p>\n<p>Scenario 1:<br \/>\nKendal County engaged in the following transactions:<\/p>\n<p>It levied and collected $1million in taxes dedicated to the repayment of outstanding general obligation bonds.<br \/>\nIt billed sponsors of a charity bicycle ride $5,000 for providing police patrols during the ride.<br \/>\nIt recognized $60,000 of cash dividends on investments dedicated to the support of a county arts center.<br \/>\nIt recognized $70,000 of cash dividends on investments dedicated to scholarships for needy county residents.<br \/>\nIt incurred $6 million in construction costs to complete a new county jail. The new jail was funded entirely with the proceeds of long-term bonds.<br \/>\nIt transferred $400,000 of unrestricted funds to an appropriate fund to be invested and eventually used to repay the principal on the long-term jail bonds (entries in two funds required).<br \/>\nIt recognized depreciation of $100,000 on equipment in a vehicle repair center that services all county departments that have motor vehicles.<br \/>\nIt collected $30,000 in parking fees at the county-owned garage.<br \/>\nIt issued $8 million in bonds to improve the city-owned electric utility.<br \/>\nIt distributed $3 million in taxes collected on behalf of school districts located within the country.<br \/>\nInstructions:<\/p>\n<p>Prepare appropriate journal entries.<br \/>\nIndicate the type of funds in which these transactions would most likely be recorded.<br \/>\nP. 5-4: Generally accepted modified accrual accounting practices pertaining to inventories may not fulfill the objectives of financial reporting. (80 points)<\/p>\n<p>Scenario 2:<br \/>\nThe following is an excerpt from a note to the financial statements of the city of Dallas (dates changed):<\/p>\n<p>The city prepares its annual appropriated general fund, debt service fund, and proprietary operating funds budgets on a basis (budget basis) which differs from generally accepted accounting principles (GAAP basis). The major differences between the budget and GAAP bases are that encumbrances are recorded as the equivalent of expenditures (budget) rather than a commitment of fund balance (GAAP) in the governmental funds.<\/p>\n<p>The city accounts for inventories on the purchases basis. One of the city\u2019s departments, which is accounted for in the general fund, budgeted $195,000 in supplies expenditures for fiscal 2015. It began the 2015 fiscal year with $30,000 of supplies on hand. It also had $12,000 of supplies on order. During the year it ordered an additional $180,000 of supplies, received (and paid for in cash) $185,000 of supplies, and consumed $178,000 of supplies.<\/p>\n<p>Instructions:<\/p>\n<p>Prepare all journal entries, consistent with GAAP, including budgetary and encumbrance entries that the department should make in 2015.<br \/>\nIndicate the accounts and amounts related to supplies that the city would report on its year-end statement of revenues, expenditures, and changes in fund balance and balance sheet.<br \/>\nBy how much did the department over- or under-spend its supplies budget (on a budget basis)?<br \/>\nComment on the extent to which the city\u2019s statement provides a basis to:<br \/>\nAssess the \u2018\u2018true\u2019\u2019 economic costs associated with supplies<br \/>\nDetermine whether the city adhered to budgetary spending mandates<br \/>\nSuppose that in the last quarter of the year, department officials realized that the department was about to overspend its supplies budget. They therefore ceased placing new orders for supplies. However, they imposed no restrictions on the use of supplies and thereby allowed the supplies inventory to decline to near zero.<br \/>\nWhat impact would these cost-cutting measures have on supplies expenditures as reported in an actual-to budget comparison (on a budget basis)?<br \/>\nWhat impact would the year-end measures have on reported supplies expenditures (per GAAP)? Would your response be different if the city accounted for supplies on the consumption basis?<br \/>\nEX. 10-4: Investment gains and losses may have to be accounted for differently in nonexpendable than in expendable funds. (70 points)<\/p>\n<p>Scenario 3:<br \/>\nThe McCracken County Humane Society (MCHS), which is part of a county\u2019s reporting entity, established a permanent fund to provide support for its pet neutering program. As of the start of the year, the fund had a balance of $600,000, composed of both cash and marketable securities.<\/p>\n<p>The program itself, which is accounted for in a special revenue fund, is funded by both direct contributions and the income from the permanent fund. At the start of the year, the special revenue fund had assets (all investments) of $26,000.<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>Comment on the extent to which the city\u2019s statement provides a basis to: Assess the \u2018\u2018true\u2019\u2019 economic costs associated with supplies Determine whether the city adhered to budgetary spending mandates. Field: Business Finance \u2013 Accounting Option #1: Government and Not-For-Profit Accounting Portfolio #1 Your portfolio project will provide specific answers to questions that follow. Apply&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24630","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Comment on the extent to which the city\u2019s statement provides a basis to: Assess the \u2018\u2018true\u2019\u2019 economic costs associated with supplies Determine whether the city adhered to budgetary spending mandates. - onlineclassesguru<\/title>\n<meta name=\"description\" content=\"Comment on the extent to which the city\u2019s statement provides a basis to: Assess the \u2018\u2018true\u2019\u2019 economic costs associated with supplies Determine whether the city adhered to budgetary spending mandates.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/onlineclassesguru.com\/index.php\/2021\/01\/12\/comment-on-the-extent-to-which-the-citys-statement-provides-a-basis-to-assess-the-true-economic-costs-associated-with-supplies-determine-whether-the-city\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Comment on the extent to which the city\u2019s statement provides a basis to: Assess the \u2018\u2018true\u2019\u2019 economic costs associated with supplies Determine whether the city adhered to budgetary spending mandates. - 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