Leases for Government-wide Financial Statements Assignment Help With Solution

Leases for Government-wide Financial Statements Assignment Help

1.On January 1, 2015, a city entered into the following leases for equipment items. Each of the leases qualifies as a capital lease. Initial payments are on December 31, 2015. An interest rate of 12 percent is viewed as appropriate. No bargain purchase options exist.

General (10-year life) $3,000 $30,000 $19,000
Enterprise (4-year life) 9,000 36,000 30,600

a. Prepare journal entries for the year 2015 for both of these leases for government-wide financial statements.
b. Prepare journal entries for the year 2015 for both of these leases for fund financial statements.
2.Land City leases a fleet of garbage trucks. The term of the lease is 10 years, approximately the useful life of the equipment. Based on a sales price of $800,000 and an interest rate of 6%, the city agrees to make annual payments of $108,694. Upon the expiration of the lease, the trucks will revert to the city.
a)Prepare appropriate journal entries in the general fund, the general fixed assets account group, and the general long-term debt account group to record the signing of the lease.
b)Prepare appropriate journal entries in the same fund and account groups to record the first payment on the lease. The city records depreciation on garbage trucks using the straight-line method.
3.Prepare journal entries to record the following events using the general fund and the general fixed assets account group:
a.The general fund vouchered the purchase of trucks for $80,000. The purchase had been encumbered earlier in the year at $75,000.
b.Several years ago, equipment costing $15,000 was acquired with general fund revenues. It was sold for $6,000, with proceeds belonging to the general fund.
c.Early in the year, a citizen donated to the city land appraised at $100,000. She submitted plans for a new library and agreed to cover the total cost of construction, paying the company directly as work proceeded. At year-end, the building was two-thirds finished, with costs to date of $300,000. The expenditures are recorded in a capital projects fund.
d.A snow plow was purchased with general fund cash for $92,000, which represented a cost of $110,000 less trade-in of $18,000 for an old snow plow originally purchased for $66,000 from special revenue funds. As an emergency purchase, the acquisition of the new snow plow had not been encumbered.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services

4.What costs necessitate the reporting of an expenditure by a governmental fund? At what point in time does a governmental fund report an expenditure? How do governmental funds report capital outlay in fund financial statements? How do government-wide financial statements report capital expenditures?
5.Irrespective of how capital assets are acquired, they are recorded differently in governmental funds than in business.
In a recent year, Ives Township acquired six police cars at total cost of $200,000. The vehicles are expected to have a useful life of four years.
Prepared the journal entries that the township would make in its general fund in the year of acquisition if:
a. It paid for the cars in cash at the time of acquisition.
b.It leased the cars, agreeing to make four equal payments of $63,095 starting the year of acquisition, an amount that represents the annuity required to liquidate a loan of $200,000 at 10% interest. The lease would satisfy the criteria necessary to be accounted for as a capital lease (purchase-borrow transaction).
c. It issued $200,000 in installment notes to the car dealer, agreeing to repay them in four annual payments of $63,095, starting in year of acquisition.

Product Code :Acc-sol-27

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)
You can also email us at but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.