Reference no: EM131191233
A city engages in the transactions that follow. For each transaction indicate the amount of revenue or expenditure that it should report in 2011. Assume first that the main objective of the financial statements is to enable users to assess budgetary compliance.
Then calculate the amounts, assuming that the main objective is to assess interperiod basis (that is, it expands the definition of cash to include short-term marketable securities), and its fiscal year ends on December 31.
1. Employees earned $128,000 in salaries and wages for the last five days in December 2011. They were paid on January 8, 2012.
2. A consulting actuary calculated that per an accepted actuarial cost method, the city should contribute $225,000 to its firefighters' pension fund for benefits earned in 2011. However, the city contributed only $170,000, the amount budgeted at the start of the year.
3. The city acquired three police cars for $35,000 cash each. The vehicles are expected to last for three years.
4. On December 1, 2011, the city invested $99,000 in short-term commercial paper (promissory notes). The notes matured on January 1, 2012. the city received $100,000. The $1,000 difference between the two amounts represents the city's return (interest) on the investment.
5. On January 2, 2011, the city acquired a new $10 million office building,financing it with 25-year serial bonds. The bonds are to be repaid evenly over the period they are outstanding--that is, $400,000 per year. The useful life of the building is 25 years.
6. On January 3, 2011, the city acquired another $10 million office building, financing this facility with 25-year term bonds. These bonds will be repaid entirely when they mature on January 1, 2036 The useful life of this building is also 25 years.
7. City restaurants are required to pay a $1,200 annual license fee, the proceeds of which the city uses to fund its restaurant inspection program. The license covers the period July 1 through June 30. In 2011 the city collected $120,000 in fees for the license period beginningJuly 1, 2011.
8. The city borrowed $300,000 in November 2011 to cover a temporary shortage of cash. It expects to repay the loan in February 2012.
|
Provide your position on whether residential sprinklers
: Residential sprinklers have been debated between the fire officials and builders for a very long time. There are many documented studies that indicate residential sprinklers, along with smoke detection systems, should be the first line of defense ..
|
|
Create a purchasing and supply chain plan for chilly willy
: Use the business scenario provided to create a purchasing and supply chain plan for Chilly Willy - OEM manufacturer of refrigerated cases for grocery stores that sell their products in all 50 states. They have sales of $20 million a year and predic..
|
|
Calculate the consumption ratios for the four drivers
: Calculate the consumption ratios for the four drivers.- Is there evidence of product diversity? Explain.- Calculate the activity rates that would be used to assign costs to each product.
|
|
How should a gain from the sale of treasury stock be reflect
: How should a "gain" from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions? Stockholders' equity is generally classified into two major categories.
|
|
Indicate the amount of revenue or expenditure
: For each transaction indicate the amount of revenue or expenditure that it should report in 2011.- Assume first that the main objective of the financial statements is to enable users to assess budgetary compliance.
|
|
What was the true annualized return
: You buy a stock for $20. After a year the price rises to $25 but falls back to $20 at the end of the second year. What was the average percentage return and what was the true annualized return
|
|
How much must the speculator initially remit
: The futures price of corn is $2.00. The contracts are for 10,000 bushels, so a contract is worth $20,000. The margin requirement is $2,000 a contract, and the maintenance margin requirement is $1,200. How much must the speculator initially remit
|
|
What is the probability that xequals
: Given that x has a Poisson distribution with muμequals=1.3, what is the probability that xequals=5? P(5)almost equals≈nothing(Round to four decimal places asneede
|
|
Write a thesis statement for your research paper
: Explain why you feel your science topic (or problem) is important to explore. State what (if anything) is controversial about your topic (or problem). Relate the scientific method to the topic (or problem) you have identified.
|