What reporting is appropriate for the city for the first year?
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At the start of Year 1, the City Peacock leased 30 computers for use by various officials in school administration and public safety at a total cost of $90,000 per year. The first lease payment is made immediately. The contracts are for five years, the expected life of the computers. After that life period, the city will return them to the lessor. What reporting is appropriate for the city for the first year?
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- At the start of Year 1, the City Peacock leases 30 computers for use by various officials in school administration and public safety at a total cost of $90,000 per year. The first lease payment is made immediately. The contracts are for 5 years, the expected life of the computers. After that period, the city will return them to the lessor. What reporting is appropriate for the city of the first year? Assume the city has an annual incremental borrowing rate of 8%The City of Roswell has a 6/30 fiscal year-end. The City uses the consumption method for recognizing inventories and prepayments. On July 1, 2006, the City leased computer equipment for use in the City s general activities. The lease is a three-year lease that qualifies as an operating lease. The City prepaid the entire three-year rental fee of $45,000. At June 30, 2007, the appropriate account balances in the General Fund associated with this transaction would be Prepaid Lease $0; Expenditures $45,000; Fund Balance Reserved for Prepaid Lease $0. Prepaid Lease $30,000; Expenditures $15,000; Fund Balance Reserved for Prepaid Lease $30,000. Prepaid Lease $30,000; Expenditures $45,000; Fund Balance Reserved for Prepaid Lease $30,000. Prepaid Lease $30,000; Expenditures $15,000; Fund Balance Reserved for Prepaid Lease $0.The City of Townsend’s city council authorized the establishment of an internal service fund to provide human resource services to city departments.The following transactions took place in the inaugural month of Townsend’s Human Resource internal service fund: The General Fund transferred $100,000 to cover initial expenses. The transfer is not expected to be repaid. The Human Resources Fund entered into a 2-year computer lease with an initial $5,000 payment. The present value of the remaining payments is $82,218. Salaries and wages paid to employees totaled $15,000. Office supplies were purchased on account for $2,500. Billings totaling $3,000 were received from the enterprise fund for utility charges. Billings to other departments for services provided to them were as follows: General Fund $ 16,000 Special Revenue Fund 4,700 Closing entries were prepared. Required a-1. Assume all expenses at the government-wide level are charged to the General…
- The City of Townsend's city council authorized the establishment of an internal service fund to provide human resource services to city departments. The following transactions took place in the Inaugural month of Townsend's Human Resource internal service fund: 1. The General Fund transferred $100,000 to cover initial expenses. The transfer is not expected to be repaid. 2. The Human Resources Fund entered into a 2-year computer lease with an initial $5,000 payment. The present value of the remaining payments is $82,218. 3. Salaries and wages paid to employees totaled $15,000. . Office supplies were purchased on account for $2,500. 5. Billings totaling $3,000 were received from the enterprise fund for utility charges. 6. Billings to other departments for services provided to them were as follows: General Fund Special Revenue Fund $ 16,000 4,700 1. Closing entries were prepared. Required 1. a-1. Assume all expenses at the government-wide level are charged to the General Government…The City of Townsend's city council authorized the establishment of an internal service fund to provide human resource services to city departments. The following transactions took place in the inaugural month of Townsend's Human Resource internal service fund: 1. The General Fund transferred $100,000 to cover initial expenses. The transfer is not expected to be repaid. 2. The Human Resources Fund entered into a 2-year computer lease with an initial $5,000 payment. The present value of the remaining payments is $82.218 3. Salaries and wages paid to employees totaled $15,000. 4. Office supplies were purchased on account for $2,500. 5. Billings totaling $3,000 were received from the enterprise fund for utility charges 6. Billings to other departments for services provided to them were as follows: General Fund Special Revenue Fund 7. Closing entries were prepared Required $16,000 4,700 a-1. Assume all expenses at the government-wide level are charged to the General Government function.…A city starts a solid waste landfill that it expects to fill to capacity gradually over a 12-year period. At the end of the first year, it is 7 percent filled. At the end of the second year, it is 17 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity. If this landfill is judged to be a governmental fund, what liability will be reported at the end of the second year on fund financial statements? a. $170,000. b. $0. c. $100,000. d. $180,000.
- The college is considering funding options for new engineering building on campus. The money has been raised for the construction costs and now the focus is raising funds for the annual upkeep and maintenance (U&M) expenses. For this building, contractors will be hired with a series of 3-year agreements over the 30 years. Under each contract the university will pay $125,000 at the beginning of each 3-year agreement to cover all U&M building expenses over that 3-year period. The first 3-year agreement begins when the building opens. A wealthy alumnus (you one day) has agreed to donate enough at the building opening to cover the U&M expenses over the 30- year term. If money invested by the school's engineering foundation earns 6% interest compounded quarterly, how much must be donated. (Hint: Build a spreadsheet like the one below) Year 0 3 6 9 12 15 18 21 24 27 Cost Rate Cash Flow FERH $125,000 $ 125,000.00 Present Worth 6% $125,000 3 year U&M Contract Cost Annual Interest Rate…Aiden’s Plumbing Company (APC) is bidding on a City of Winnipeg construction contract. The contract is for a 3-year period. The contract calls for the city to pay APC $6,000,000 at the start of the contract and $2,000,000 at the end of each of the 3 years of the contract. APC estimates that its expenses will be $5,000,000 at the end of each of the 3 years. If APC uses IRR to evaluate its project opportunities, it would only accept this contract if its required return for such projects is a. <12.97800069% b. <23.37519285% c. < 25% d. <33.333333% e. >12.97800069% f. >23.37519285% g. >25% h. >33.333333% Answer is f. Please advise how to figure out this answer and any formulas required.Pittston County has an empty school building with a net book value of $700,000 and a remaining life of 10 years with no expected residual value. The building is leased to the City of Lincoln at the start of the current year for 10 years. Annual payments are set at $103,565 to reflect Pittston’s implicit interest rate of 10 percent per year. This rate is known by both parties. The first payment is made immediately. What revenue and expense does Pittston report in the first year on government wide statements? What expense does Lincoln report in the first year on government wide statements?
- A Government University has RO 15000 cash on hand in an appropriated fund. The University signs a purchase order for RO 7000 to purchase new projectors and systems deliverable in three months. The purpose of writing encumbrance in the ledger is:A city starts a solid waste landfill that it expects to fill to capacity gradually over a 10-year period. At the end of the first year, it is 8 percent filled. At the end of the second year, it is 19 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity. If this landfill is judged to be a governmental fund, what liability will be reported at the end of the second year on fund financial statements? Choose the correct.a. $–0–b. $110,000c. $190,000d. $200,000A city starts a solid waste landfill that it expects to fill to capacity gradually over a 12-year period. At the end of the first year, it is 7 percent filled. At the end of the second year, it is 17 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity. Which of the following is true for the Year 2 government-wide financial statements? a. Expense will be $100,000 and liability will be $170,000. b. Both expense and liability will be $100,000. c. Expense will be $90,000 and liability will be $180,000. d. Both expense and liability will be zero.