Chapter 9 E9-3 Part A only:
Part A:
1. Capital Assets (Copiers) $70,000
Cash 70,000
To records the acquisition of capital assets
2. Cash 35,000
Nonreciprical transfer from general fund 35,000
To record the capital contribution from the general fund
3. Cash 270,000
Bonds Payable 270,000
To record long-term debt
4. Capital Assets (Equipment) 160,000
Capital Assets (Improvements) 100,000
Cash 260,000
5. Due from Clerk’s office 2,500
Operating Revenues 2,500
To record billing to other departments
6. Operating Expenses 9,000
Cash 9,000
To record various operating expenses
7. Depreciation Expenses 2,400
Accumulated Depreciation 2,400
To record depreciation expenses
Chapter 10 Question #1:
Permanent funds are used to account for nonexpendable resources that must be used in support of the reporting government’s own programs. Permanent funds support government-owned museums; provide for perpetual care of public cemeteries; supplement the compensation of public university faculty; provide student financial aid; and fund research at government-owned hospitals. Permanent funds are classified as governmental funds.
Fuduciary funds are used to account for resources held in a trustee capacity for parties other than the government itself. There are four major types of fiduciary funds which are: Pension and trust funds; investment trust funds; private purpose trust funds; and agency funds. Fuduciary funds focus on all economic resources and are prepared on a full accrual basis of accounting.
Chapter 10 Questions #5:
The incom ...