Preston Village engaged in the following transactions:

  • It issued $20 million in bonds to purchase a new municipal office building. The proceeds were recorded in a capital projects fund.
  • It acquired the building for $20 million.
  • It recognized, as appropriate, $300,000 of depreciation on municipal vehicles.
  • It transferred $2,060,000 from the general fund to a debt service fund.
  • It paid $60,000 in interest on long-term debt and repaid $2 million of principal on the same long-term debt.
  • It sold for $5 million village land that had been acquired for $4 million. The proceeds were recorded in the general fund.

Instructions: 
Answer the following question based on the transactions outlined above.

Never use plagiarized sources. Get Your Original Essay on
Business Finance – Accounting Assignment
Hire Professionals Just from $11/Page
Order Now Click here
  1. For each of the transactions, prepare journal entries to record them in appropriate governmental funds (which are accounted for on a modified accrual basis).
  2. Prepare journal entries to reflect how the transactions would be reflected in government-wide statements (which are prepared on a full accrual basis).
  3. How can governments justify preparing two sets of financial statements, each on a different basis?

Requirements:

  • Submit your responses to the following questions in a 1-2 page document in MS Word. Label each question clearly. Please include computations in a table.
  • For written answers, please make sure your responses are grammatically correct and free from spelling errors.

Need a custom written plagiarism free essay? Click here to order now.

Open chat
Lets chat on via WhatsApp
Hello, Welcome to our WhatsApp support. Reply to this message to start a chat.