Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Question
Chapter 19, Problem 19.15P
(a)
To determine
Introduction:
The journal entries for the transactions to be entered into the books of local government
(a)
Expert Solution
Answer to Problem 19.15P
Journal Entries
| S.no | Date | Particulars | Debit (in $) | Credit (in$) |
| 1 | Equipment purchase | 25,000 | ||
| Cash | 25,000 | |||
| 2 | Cash | 100,000 | ||
| Revenue | 100,000 | |||
| 3 | Cash | 55,000 | ||
| Investment | 50,000 | |||
| Gain on sale of investment | 5,000 | |||
| 4 | Cash | 1,000,000 | ||
| Issue of bond | 1,000,000 | |||
| Construction expenses | 1,000,000 | |||
| Cash | 1,000,000 | |||
Explanation of Solution
- Recording the amount released from the general fund for the purchase of equipment
- Recording the donation received from donor
- Recording the sale of investment
- Recording the issue of bonds
(b)
To determine
Introduction: Journal entries is a systematic method of recording transactions as and when they occur. It is a summary of transactions divided into the debit and credit items that are recorded chronologically. It is an act of keeping and recoding all the transactions occurring in the business.
The journal entries for the transactions to be entered into the books of Voluntary Health and Welfare Organization
(b)
Expert Solution
Answer to Problem 19.15P
Journal Entries
| S.no | Date | Particulars | Debit (in $) | Credit (in$) |
| 1 | Equipment purchase | 25,000 | ||
| Cash | 25,000 | |||
| Cash | 25,000 | |||
| Net assets realized- Asset acquisition | 25,000 | |||
| Net asset realized- Asset acquisition | 25,000 | |||
| Cash | 25,000 | |||
| 2 | Cash | 55,000 | ||
| Investment- common stock | 50,000 | |||
| Gain on sale of investment | 5,000 | |||
| 3 | Cash | 1,000,000 | ||
| Bonds payable | 1,000,000 | |||
| Buildings | 1,000,000 | |||
| Cash | 1,000,000 | |||
Explanation of Solution
- Recording the asset acquisition
- Recording the donation received from donor
- Recording the sale of investment
- Recording the issue of bonds
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b. Prepare journal entries for the following selected transactions of the Eastern Kidney Association, which uses the
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●
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Question text
The following inter-fund transactions occurred in ULUS City between General Fund and Enterprise Fund.Journalize these transactions in both funds.
1. Enterprise fund liquidated one of their projects and sent the remaining cash $1,000 to the general fund.
2. General fund paid $7,000 as auditing fees, 2,000 of them for Enterprise fund. It now bills the Enterprise fund for that fund’s share of service.
3. General fund lent $11,000 as long term loan to the Enterprise fund.
4. General fund paid $5,000 cash for five copy machines. It discovers that $1,000 of that amount is for Enterprise fund. General fund required reimbursement.
A local private not-for-profit health care entity incurred the following transactions during the current year. Record each of these transactions in appropriate journal entry form. Prepare a schedule calculating the change in unrestricted, permanently restricted, and temporarily restricted net assets.
The entity’s governing board announced that $160,000 in previously unrestricted cash will be used in the future to acquire equipment. The funds are invested until the purchase eventually occurs.
Received a donation of $80,000 with the stipulation that all income derived from this money be used to supplement nursing salaries.
Expended $25,000 for medicines. The entity received the money the previous year as a restricted gift for this purpose.
Charged patients $600,000, 80 percent of which is expected to be covered by third-party payors.
Calculated depreciation expense of $38,000.
Received interest income of $15,000 on the investments the board acquired in transaction (a)
Estimated that…
Chapter 19 Solutions
Advanced Financial Accounting
Ch. 19 - Prob. 19.1QCh. 19 - Prob. 19.2QCh. 19 - Prob. 19.3QCh. 19 - Prob. 19.4QCh. 19 - Prob. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.11QCh. 19 - Prob. 19.12QCh. 19 - Prob. 19.13QCh. 19 - Prob. 19.14QCh. 19 - Prob. 19.15QCh. 19 - Prob. 19.16QCh. 19 - Prob. 19.17QCh. 19 - Prob. 19.18QCh. 19 - Should a rotary club, an ONPO, report depreciation...Ch. 19 - Prob. 19.20QCh. 19 - Prob. 19.1CCh. 19 - Prob. 19.2CCh. 19 - Prob. 19.3CCh. 19 - Prob. 19.4CCh. 19 - Prob. 19.5CCh. 19 - Prob. 19.7CCh. 19 - Prob. 19.1.1ECh. 19 - Prob. 19.1.2ECh. 19 - Prob. 19.1.3ECh. 19 - Prob. 19.1.4ECh. 19 - Prob. 19.1.5ECh. 19 - Prob. 19.1.6ECh. 19 - Prob. 19.2.1ECh. 19 - Prob. 19.2.2ECh. 19 - Prob. 19.2.3ECh. 19 - Prob. 19.2.4ECh. 19 - Prob. 19.2.5ECh. 19 - Prob. 19.2.6ECh. 19 - Prob. 19.2.7ECh. 19 - Prob. 19.2.8ECh. 19 - Prob. 19.2.9ECh. 19 - Prob. 19.2.10ECh. 19 - Prob. 19.2.11ECh. 19 - Prob. 19.2.12ECh. 19 - Prob. 19.3ECh. 19 - Prob. 19.4ECh. 19 - Prob. 19.5.1ECh. 19 - Prob. 19.5.2ECh. 19 - Prob. 19.5.3ECh. 19 - Prob. 19.5.4ECh. 19 - Prob. 19.5.5ECh. 19 - Prob. 19.5.6ECh. 19 - Prob. 19.5.7ECh. 19 - Prob. 19.5.8ECh. 19 - Prob. 19.5.9ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8.1ECh. 19 - Prob. 19.8.2ECh. 19 - Prob. 19.8.3ECh. 19 - Prob. 19.8.4ECh. 19 - Prob. 19.8.5ECh. 19 - Prob. 19.8.6ECh. 19 - Prob. 19.8.7ECh. 19 - Prob. 19.8.8ECh. 19 - Prob. 19.8.9ECh. 19 - Prob. 19.8.10ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 19.13PCh. 19 - Prob. 19.14PCh. 19 - Prob. 19.15PCh. 19 - Prob. 19.16PCh. 19 - Prob. 19.17PCh. 19 - Prob. 19.18PCh. 19 - Prob. 19.19PCh. 19 - Prob. 19.20PCh. 19 - Prob. 19.21PCh. 19 - Prob. 19.22PCh. 19 - Prob. 19.23PCh. 19 - Prob. 19.24.1PCh. 19 - Prob. 19.24.2PCh. 19 - Prob. 19.24.3PCh. 19 - Prob. 19.24.4PCh. 19 - Prob. 19.24.5PCh. 19 - Prob. 19.24.6PCh. 19 - Prob. 19.24.7PCh. 19 - Prob. 19.24.8PCh. 19 - Prob. 19.24.9PCh. 19 - Prob. 19.24.10PCh. 19 - Prob. 19.24.11PCh. 19 - Prob. 19.24.12PCh. 19 - Prob. 19.24.13PCh. 19 - Prob. 19.24.14PCh. 19 - Prob. 19.24.15PCh. 19 - Prob. 19.24.16PCh. 19 - Prob. 19.24.17PCh. 19 - Prob. 19.24.18PCh. 19 - Prob. 19.24.19PCh. 19 - Prob. 19.24.20PCh. 19 - Prob. 19.25PCh. 19 - Prob. 19.26P
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