ACCT 321 SEU Government Non Profit Accounting Public Transportation Q&A Discussion Q1. Realizing the need of public transportation, the government of KSA has established a legally separate public benefit corporation named Metro City Transport.In the law establishing Metro City Transport, it was authorized to appoint Metro’s entire governing body. When Metro City Transport went to prepare its financial statements, two questions were raised.Was Metro City Transport a government?And if it were a government, how should it prepare its Cash flow statement?
Required:
Discuss whether Metro City Transport is or is not a governmental entity.What are the specific factors in this situation that cause Metro to be one or the other? What are the other activities that any government does for its country?
Discuss the Standard Setters that Metro City Transport uses to prepare its Cash flow statement and what are the three standard setters that government organization should follow in preparing its Financial statements.
Q2. A department of a local government began operations at the beginning of the current fiscal year with $250,000 cash.During the fiscal year, the department made cash disbursements for the following:
#Salaries and other personnel costs, $100,000
#Office rent and utilities, $24,000
#Retirement of debt principal, $10,000; payment of interest, $2,200
#Purchased equipment at the beginning of the fiscal year for $30,000; the equipment is expected to last 6 years and have a salvage value of $6,000
#Photocopier rental, $10,500
Based on the preceding transactions, compute total annual expenditures for this department assuming it performs governmental-type activities and is accounted for in the General Fund.
Then compute total annual expenses for this department assuming it performs activities within an Enterprise Fund.
Q3. The following are the events and transactions related with a township for the year 2015. You are required to prepare necessary entries for Township for the year 2015.
The Township adopted a budget calling for appropriations of $500,000.The estimated revenues (all property taxes) were $450,000.
The Township sent property tax bills amounting to $450,000 to property owners.
Property owners paid $420,000 of property taxes to the Township.
A purchase order of $65,500 was sent to a vendor of supplies.
The supplies ordered in transaction d. were received in good order and the accompanying invoice of $55,000 was approved.
Q4. From the information below prepare Financial Statements College of Administrative and Financial Sciences
Assignment 1
Deadline: (end of week 6) 29 /02/ 2020 @ 23:59
Course Name: Government and NonProfit Accounting
Student’s Name: ARWA
Course Code: ACCT 321
Student’s ID Number:
Semester: 2
CRN: 20453
Academic Year: 1440/1441 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: …… /5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via
allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered
plagiarism).
• Submissions without this cover page will NOT be accepted.
Assignment Question(s):
(Marks. 5)
Q1. Realizing the need of public transportation, the government of KSA has established a legally
separate public benefit corporation named Metro City Transport. In the law establishing Metro
City Transport, it was authorized to appoint Metro’s entire governing body. When Metro City
Transport went to prepare its financial statements, two questions were raised. Was Metro City
Transport a government? And if it were a government, how should it prepare its Cash flow
statement?
Required:
a. Discuss whether Metro City Transport is or is not a governmental entity. What are the
specific factors in this situation that cause Metro to be one or the other? What are the other
activities that any government does for its country?
b. Discuss the Standard Setters that Metro City Transport uses to prepare its Cash flow
statement and what are the three standard setters that government organization should follow
in preparing its Financial statements.
Q2. A department of a local government began operations at the beginning of the current
fiscal year with $250,000 cash. During the fiscal year, the department made cash
disbursements for the following:
# Salaries and other personnel costs, $100,000
# Office rent and utilities, $24,000
# Retirement of debt principal, $10,000; payment of interest, $2,200
# Purchased equipment at the beginning of the fiscal year for $30,000; the
equipment is expected to last 6 years and have a salvage value of $6,000
# Photocopier rental, $10,500
Based on the preceding transactions, compute total annual expenditures for this
department assuming it performs governmental-type activities and is accounted
for in the General Fund.
Then compute total annual expenses for this department assuming it performs
activities within an Enterprise Fund.
Q3. The following are the events and transactions related with a township for the year
2015. You are required to prepare necessary entries for Township for the year 2015.
a. The Township adopted a budget calling for appropriations of $500,000. The
estimated revenues (all property taxes) were $450,000.
b. The Township sent property tax bills amounting to $450,000 to property
owners.
c. Property owners paid $420,000 of property taxes to the Township.
d. A purchase order of $65,500 was sent to a vendor of supplies.
e. The supplies ordered in transaction d. were received in good order and the
accompanying invoice of $55,000 was approved.
Q4. From the information below prepare Financial Statements
Cash
Taxes receivable, net
20,000
147,000
Investments
65,000
Due from other funds
68,000
Vouchers payable
39,000
Due to other funds
152,750
Unassigned fund balance
117,000
Estimated revenues
610,000
Appropriations
590,000
Budgetary fund balance
20,000
Revenues-taxes
590,175
Revenues-charges for services
Expenditures-personal services
Expenditures-supplies
Expenditures-capital outlay
14,080
287,125
29,680
244,000
Transfer in from debt service fund
Transfers out to capital projects fund
32,500
84,700
0
$1,555,505
$1,555,505
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