Reference no: EM134291
A special district's balance sheet mayn't capture its economic resources as well as obligations
A special district accounts for its general fund (its only fund) on a modified accrual basis. In a particular period it engaged in the following transactions
a) It issued $20 million in long-term bonds
b) It acquired numerous tracts of land at a total cost of $4 million paying the entire amount in cash
c) It sold a portion of the land for $1 million receiving cash for the entire amount. The tract sold had cost $0.8 million
d) It repaid $2 million of the bonds
e) It lost a lawsuit as well as was ordered to pay $9 million over three years. It made its first cash payment of $3 million
1) Make journal entries to record the transactions in the general fund
2) On the basis of your journal entries prepare a balance sheet as well as a statement of revenues, expenditures as well as other changes in fund balance
3) Comment on the extent to which the balance sheet apprehensions the district's economic resources and obligations. How can you validate such a balance sheet?
4) Comment on the degree to which the statement of revenues, expenditures and other changes in fund balance captures the district's cost of services. How can you validate such a financial statement?
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Insurance settlement proceeds
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Compare the total operating income
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Problem summary and solution recommendation
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How can you validate such a financial statement
: 4) Comment on the degree to which the statement of revenues, expenditures and other changes in fund balance captures the district's cost of services. How can you validate such a financial statement
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How can you validate such a financial statement
: 4) Comment on the degree to which the statement of revenues, expenditures and other changes in fund balance captures the district's cost of services. How can you validate such a financial statement
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Explain the difference in operating income
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Compute taxable income as well as income tax payable
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Provide examples to clarify and amplify your discussion
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Provide examples to clarify and amplify your discussion
: Describe key issues of the case as they relate to Mr. Friehling's actions, or inactions, in relation to the AICPA's Code of Professional Conduct. Identify as well as describe the issues and provide examples to clarify and amplify your discussion. ..
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