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6) Old West City had the following transactions in fiscal 2014. Assume that all expenditures were properly appropriated in the fiscal 2014 budget. 1.A six-month loan was made to the special revenue fund from the general fund amounting to $28,000. 2.A purchase order for landscaping maintenance services was issued in the amount.
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8) Lesher Corporation lost their primary contract and entered into voluntary Chapter 7 bankruptcy in the early part of 2014. By July 1, all assets were converted into cash, the secured creditors were paid, and $124,500 in cash was left to pay the remaining claims as follows: Accounts payable$50,000 Claims incurred between.
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13) Faled Company has the following assets and liabilities, stated at fair value in liquidation. Assets pledged with secured creditors$100,000 Assets pledged with partially secured creditors75,000 Other assets160,000 Secured liabilities50,000 Partially secured liabilities110,000 Unsecured liabilities with priority80,000 Unsecured liabilities215,000 Required: Determine the amount of cash that will be available to pay unsecured creditors, and the percentage of unsecured liabilities.
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18) The four cash flow categories required in an Enterprise Fund's Statement of Cash Flows are listed below and assigned a letter code. A)Cash flows from operating activities B)Cash flows from noncapital financing activities C)Cash flows from capital and related financing activities D)Cash flows from investing activities Required: Use the correct letter code to indicate where.
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16) The partners of Nelatyna Manufacturing have decided to dissolve their partnership as of the end of 2013. The partnership is going to liquidate during the first several months of 2014. The four partners of Nell, Ann, Tyler and Nadine, share profits and losses 35%, 30%, 25%, and 10%, respectively..
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7) The following are transactions for the city of Franklin. a.Borrowed $20,000 by issuing a two-year note. b.Purchased equipment for $6,000 cash. c.Licenses for $700 were billed on account. d.Accrued employee salary costs of $7,000. e.Depreciation expense on equipment for year, $1,000. Required: Analyze the above transactions by using the accounting equation for a proprietary fund. 8) For.
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18) Pasten Corporation is liquidating under Chapter 7 of the Bankruptcy Act. The accounts of Pasten at the time of filing are summarized as follows: Estimated Realizable Book Value    Value    Cash$65,000$65,000 Accounts receivable-net15,00013,000 Inventory280,000190,000 Land20,00028,000 Building210,000220,000 Goodwill 595,0000 $1,185,000 Accounts payable$800,000 Wages and salaries21,000 Taxes payable12,000 Accrued mortgage interest payable16,000 Mortgage payable304,000 Capital stock100,000 Deficit (68,000) $1,185,000 The land and building are pledged as security for the mortgage payable as.
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10) Journalize the following utility transactions in the Quest County Enterprise Fund: 1.Billings to external customers $1,600,000; billings to Quest County governmental funds $130,000. 2.Collected refundable deposits from new customers $10,000. 3.Collected 95% of all billings by fiscal year-end. 4.Refunded $4,000 in deposits to former customers. 5.Unbilled services to outside customers at year-end $14,000. 11) Prepare.
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11) Creditor committees are elected A) in all bankruptcy cases. B) in Chapter 7 cases. C) only in bankruptcy cases arising from involuntary petitions. D) in Chapter 11 cases. 12) In a Chapter 7 bankruptcy case, what is the first-to-last ranking order of priority for payment? (Use the following list of claim types.) I.stockholder claims II.unsecured priority.
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20.2   Exercises 1) Match the following fund balance descriptions for a General Fund with the proper classification for a fund balance. Each classification may be used more than once. A.Nonspendable Fund Balance B.Restricted Fund Balance C.Committed Fund Balance D.Assigned Fund Balance E.Unassigned Fund Balance ________ 1. Amounts can only be spent for the specific purposes determined by.
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3) CommTex Corporation is liquidating under Chapter 7 of the Bankruptcy Act. The accounts of CommTex at the time of filing are summarized as follows: Estimated Realizable Book ValueValue Cash$80,000$80,000 Accounts receivable-net50,00040,000 Inventory80,00060,000 Land10,00020,000 Building-net150,000110,000 Equipment-net60,00040,000 Goodwill  10,0000 $440,000 Accounts payable$120,000 Wages and salaries20,000 Contributions due to pension plan10,000 Taxes payable60,000 Accrued interest payable (includes10,000 $8,000 from the mortgage payable and $2,000 from the note payable) Note payable120,000 Mortgage payable90,000 Capital stock80,000 Deficit(70,000) $440,000 The.
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3) Willborough County had the following transactions in 2014. 1.A central motor pool was established with a $200,000 nonreciprocal transfer from the General Fund. 2.The water and sewer authority, which provides services to residents for a fee, issued a bond offering at $750,000 par. Bonds proceeds are restricted to renovating the treatment.
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14) Journalize the following municipal zoo transactions in the Lackluster County Enterprise Fund: 1.The zoo issued $1,000,000 of 5% revenue bonds at 99 on July 1, 2014 (an interest payment date). The bond proceeds are to be used for a new polar bear exhibit and the issue will mature in 20.
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15) Aqua Corporation filed a petition under Chapter 7 of the bankruptcy act in January, 2014. On February 28, the following information was presented regarding Aqua's financial status. Book ValuesFair Values Cash$50,000$50,000 A/R - net100,00090,000 Inventories80,00060,000 Fixed Assets - net200,000230,000 Priority Claims80,000 A/P100,000 N/P110,000 Mortgage Payable200,000 The Note Payable is secured by Accounts Receivable, and the Mortgage Payable is secured.
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20.1   Multiple Choice Questions 1) When a capital lease is used to lease fixed assets for the general government, the governmental fund acquiring the fixed assets debits ________ at the ________. A) expenditures; future value of the minimum lease payments B) fixed assets; future value of the minimum lease payments C) expenditures; present value.
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22.1   Multiple Choice Questions 1) Which of the following is not true? A) A not-for-profit entity operates for purposes other than to provide goods or services at a profit. B) A not-for-profit entity may be governmental or non-governmental. C) A not-for-profit entity may possess ownership interests like a corporation. D) A not-for-profit entity receives resources.
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17) Alf, Bill, Cam, and Dot are partners who share profits and losses 30%, 20%, 35%, and 15%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2014. The partnership trial balance at December 31, 2013 is as follows: DebitsCredits Cash$6,000 Accounts receivable20,000 Inventory50,000 Loan to Bill8,000 Furniture30,000 Equipment36,000 Goodwill20,000 Accounts payable$23,500 Note payable60,000 Loan from Cam12,400 Alf,.
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5) Bounty County had the following transactions in 2014. 1.The budget for the county was approved, showing estimated revenues of $320,000 from local income taxes, and total estimated expenditures of $316,000. 2.Tax bills were mailed amounting to $326,000, which are due in 60 days. All but 2% was expected to be collectible. 3.Taxes.
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16) Prepare journal entries to record the following grant-related transactions of the municipal swimming pool, which is funded primarily by membership fees. 1.Received an operating grant in cash from the state for $200,000, to be used for life-saving and first-aid training. 2.Incurred and paid qualifying expenses on the state grant program by.
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16) Address the following situations separately. 1.For the budgetary year beginning July 1, 2014, Coastal City expected the following cash flow resources: Property taxes, licenses, and fees$3,000,000 Proceeds of debt issue1,000,000 Interfund transfers to debt service fund750,000 In the budgetary entry, what amount did Coastal City record for estimated revenues? 2.During the fiscal year ended June.
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10) For each of the following events or transactions, identify the type of fund(s) that will be affected. 1.A central purchasing department was established to handle all the purchasing needs of a county government. 2.A county government levies sales taxes restricted as to use for job creation. 3.A county government receives a large.
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14) The following are transactions for the city of Greenville. a.Issued $50,000 10-year bonds. b.Used $30,000 of the cash to buy a truck. c.Sold the truck that was replaced which had cost $28,000, for $2,000. The old truck was fully depreciated. Residual value is zero. d.Computed depreciation on the new truck for the year.
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12) Dip Corporation is in a Chapter 11 bankruptcy reorganization. For each of the following transactions relating to the reorganization, show the journal entry that would be required by Dip. Assume that all unsecured liabilities were not reclassified to Prepetition Claims Subject to Compromise. 1.Dip has $200,000 in bonds payable which.
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12) The general fund trial balance for Lakeview City held the following balances at September 30, 2014, just before closing entries were made: Due from other funds$8,000 Fund balance - unassigned50,000 Estimated revenues180,000 Revenues177,000 Appropriations176,000 Expenditures - current year169,000 Expenditures - prior year16,000 Other financing sources - transfer in from Capital Projects Fund62,000 Required: Prepare the necessary closing entries for.
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19.2   Exercises 1) Match each of the following fund types to one of the following three fund categories as indicated. Each fund category may be used more than once. A.Governmental Fund B.Proprietary Fund C.Fiduciary Fund ________ 1.Debt Service Fund ________ 2.Internal Service Fund ________ 3.Agency Fund ________ 4.General Fund ________ 5.Permanent Fund ________ 6.Enterprise Fund ________ 7.Capital Projects Fund ________ 8.Trust Fund ________.
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13) The partnership of May, Novem, and Octo was dissolved. By August 1, 2014, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on August 1, 2014 (with partner residual profit and loss sharing percentages) was as follows: Cash$100,000May, capital (30%)$8,000 Novem, capital (20%)(120,000)       Octo,.
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5) Finale Company is in bankruptcy and is being liquidated under the provisions of Chapter 7 of the bankruptcy code. The trustee has converted all assets into $180,000 cash and has prepared the following list of approved claims: Customer deposits ($1,000 from each of three customers that ordered products that were never.
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4) The following are transactions for the city of Springfield. a.Borrowed $20,000 by issuing a three-month, 5% note. b.Paid $4,000 for equipment. c.Services for $1,000 were billed and collected. d.Year-end accrual of 3 months interest on note in (a). Required: Analyze the above transactions by using the accounting equation for a governmental fund. 5) The following are.
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19.1   Multiple Choice Questions 1) Which pronouncements have the highest level of authority for state and local governments? A) Financial Accounting Standards Board Statements B) GASB Statements C) Consensus Positions of GASB Emerging Issues Task Force D) GASB Technical Bulletins 2) The key focus of government fund accounting concerns A) capital expenditures. B) intergovernmental transfers from the general.
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15) Tye, Ula, Val, and Watt are partners who share profits and losses 40%, 30%, 20%, and 10%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2014. The partnership trial balance at December 31, 2013 is as follows: DebitsCredits Cash$3,000 Accounts receivable19,000 Inventory25,000 Loan to Val5,000 Furniture15,000 Equipment10,000 Goodwill12,000 Accounts payable$13,600 Note payable30,000 Loan from Tye5,000 Tye,.
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14) Peking County incurred the following transactions during 2014: 1.Marketable securities were donated to support the county's bike and nature trails. The donor acquired the securities for $35,000 ten years earlier; however, their current market value was $200,000. The donor specified that all income from the securities be used for the.
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18) The unadjusted trial balance for the general fund of the City of Nineva at June 30, 2014 is as follows: Debits Accounts receivable$40,000 Cash75,000 Due from agency fund25,000 Encumbrances60,000 Estimated revenues975,000 Expenditures750,000 Taxes receivable250,000 Credits Allowance for doubtful accounts5,000 Allowance for uncollectible taxes50,000 Appropriations785,000 Due to trust fund40,000 Fund balance-unassigned30,000 Reserve for encumbrances60,000 Revenues990,000 Taxes received in advance15,000 Vouchers payable200,000 Supplies on hand at June 30, 2014 totaled.
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18.1   Multiple Choice Questions 1) When the bankruptcy court grants an order for relief under Chapter 7, A) creditors may not seek payment for their claims directly from the debtor corporation. B) the reorganization plan was accepted by creditors having at least one-half of the total number of claims and the claims represent.
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21.1   Multiple Choice Questions 1) What basis of accounting is used by proprietary funds? A) Modified accrual accounting B) Accrual accounting C) Cash basis accounting D) Fair value accounting 2) Enterprise funds are accounted for in a manner similar to A) internal service funds. B) capital project funds. C) special revenue funds. D) debt service funds. 3) On January 1, 2014,.
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21.2   Exercises 1) The City's municipal golf course had the following transactions. 1.Received a beautification(operating) grant from the state for $600,000. Received cash of $600,000. 2.Incurred and paid qualifying expenses under the state grant program in (1) above of $280,000. 3.Incurred and paid construction costs on an uncompleted clubhouse for $1,200,000. 4.Received $1,000,000 cash from.
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11) At December 31, 2014, an Enterprise Fund has the following adjusted accounts outstanding: Insurance Expense$2,000 Depreciation Expense3,000 Supplies Expense10,000 Salaries Expense100,000 Service Revenues123,000 When preparing the closing entry for the temporary accounts at December 31, 2011, the Enterprise Fund's accountant will A) credit Retained Earnings $8,000. B) credit Net Cash, $8,000. C) credit Net Position, Unrestricted $8,000. D) credit.
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11) Voluntary health and welfare organizations classify fund-raising costs as A) costs of services sold. B) program services. C) auxiliary expenses. D) supporting services. 12) Voluntary health and welfare organizations A) may not have paid executives or staff. B) are governed by separate GASB statements. C) use fund accounting, following the rules for proprietary fund reporting. D) are supported.
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19) A cash distribution plan for the Jonah, Krispy, and Lemon partnership was as follows: Priority CreditorsJonahKrispyLemon First $100,000100% Next $180,00044%10%46% Next $270,0002/91/92/3 Remainder11%44%45% Required: If $700,000 of cash was distributed by the partnership, how much was received respectively by the priority creditors, Jonah, Krispy, and Lemon? 20) The partners of the Minion, Nocti and Overly partnership share profits.
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18.2   Exercises 1) Rank the following claims of an organization filing Chapter 7 bankruptcy from 1 to 4 based on the following classifications. Each classification may be used more than once. 1.Secured Claims 2.Unsecured Priority Claims 3.Unsecured Nonpriority Claims 4.Stockholders' Claims ________ A. Claims for wages that are less than $10,000 per individual, earned within 90.
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6) Thoroughgood County has a municipal golf course and tennis club which is funded by the membership fees it charges. The club also has 6% bonds outstanding amounting to $20,000,000 on which it pays interest semi-annually. The club had the following transactions. 1.An addition to the golf clubhouse was added for.
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