Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Chapter 15, Problem 15.2.10P
To determine
Introduction: The GASB is the board that provides the guideline to the governmental units about proper accounting of transactions. As per GASB, the accounting for funds of a governmental unit is different from that of private units.
To select: The correct option.
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Dodd Village received a gift of a new fire engine from a local civic group. The fair value of this fire engine was $400,000. Which of the following is the correct entry to be made in the general fixed assets account group for this gift? Debit Credita. Memorandum entry onlyb. General Fund Assets . . . . . . . . . . . . . . . . . . . . . . . . .. 400,000Private Gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000c. Investment in General Fixed Assets . . . . . . . . . . . .400,000Gift Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000d. Machinery and Equipment . . . . . . . . . . . . . . . . . . . 400,000Investment in General Fixed Assets from Private Gifts 400,000
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During the year, a local merchant donated a building to the City of Stage Coach. The original cost of the building was $300,000.
Accumulated depreciation at the date of the gift amounted to $250,000. The acquisition value of the donation at the date of the
gift was $600,000. At what amount should this contribution be recorded in the governmental activities accounts at the
government-wide level?
Multiple Choice
$50,000.
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$0.
The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. which of the following statements is true about reporting a revenue in connection with this gift? Choose the correct.a. A revenue will be reported.b. Revenue is reported but only if the asset is reported.c. If the asset is not capitalized, no revenue should be recognized.d. As a gift, no revenue would ever be reported.
Chapter 15 Solutions
Advanced Accounting
Ch. 15 - Prob. 1UTICh. 15 - Name three advantages gained by government...Ch. 15 - Why are budgets crucial in accounting for...Ch. 15 - Prob. 4UTICh. 15 - Prob. 5UTICh. 15 - Prob. 6UTICh. 15 - Prob. 7UTICh. 15 - Prob. 1.1ECh. 15 - Prob. 1.2ECh. 15 - Accounting for transactions. Select the best...
Ch. 15 - Prob. 1.4ECh. 15 - Prob. 1.5ECh. 15 - Prob. 1.6ECh. 15 - Accounting for transactions. Select the best...Ch. 15 - Accounting for transactions. Select the best...Ch. 15 - Prob. 1.9ECh. 15 - Accounting for transactions. Select the best...Ch. 15 - Accounting and reporting. Indicate (he part [(a)...Ch. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Prob. 15.1.1PCh. 15 - Prob. 15.1.2PCh. 15 - Prob. 15.1.3PCh. 15 - Prob. 15.1.4PCh. 15 - Prob. 15.1.5PCh. 15 - Prob. 15.1.6PCh. 15 - Prob. 15.1.7PCh. 15 - Prob. 15.2.1PCh. 15 - Prob. 15.2.2PCh. 15 - Prob. 15.2.3PCh. 15 - Prob. 15.2.4PCh. 15 - Prob. 15.2.5PCh. 15 - Prob. 15.2.6PCh. 15 - Prob. 15.2.7PCh. 15 - Prob. 15.2.8PCh. 15 - Prob. 15.2.9PCh. 15 - Prob. 15.2.10P
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