Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Question
Chapter 19, Problem 19.15P
(a)
To determine
Introduction:
The journal entries for the transactions to be entered into the books of local government
(a)
Expert Solution
Answer to Problem 19.15P
Journal Entries
| S.no | Date | Particulars | Debit (in $) | Credit (in$) |
| 1 | Equipment purchase | 25,000 | ||
| Cash | 25,000 | |||
| 2 | Cash | 100,000 | ||
| Revenue | 100,000 | |||
| 3 | Cash | 55,000 | ||
| Investment | 50,000 | |||
| Gain on sale of investment | 5,000 | |||
| 4 | Cash | 1,000,000 | ||
| Issue of bond | 1,000,000 | |||
| Construction expenses | 1,000,000 | |||
| Cash | 1,000,000 | |||
Explanation of Solution
- Recording the amount released from the general fund for the purchase of equipment
- Recording the donation received from donor
- Recording the sale of investment
- Recording the issue of bonds
(b)
To determine
Introduction: Journal entries is a systematic method of recording transactions as and when they occur. It is a summary of transactions divided into the debit and credit items that are recorded chronologically. It is an act of keeping and recoding all the transactions occurring in the business.
The journal entries for the transactions to be entered into the books of Voluntary Health and Welfare Organization
(b)
Expert Solution
Answer to Problem 19.15P
Journal Entries
| S.no | Date | Particulars | Debit (in $) | Credit (in$) |
| 1 | Equipment purchase | 25,000 | ||
| Cash | 25,000 | |||
| Cash | 25,000 | |||
| Net assets realized- Asset acquisition | 25,000 | |||
| Net asset realized- Asset acquisition | 25,000 | |||
| Cash | 25,000 | |||
| 2 | Cash | 55,000 | ||
| Investment- common stock | 50,000 | |||
| Gain on sale of investment | 5,000 | |||
| 3 | Cash | 1,000,000 | ||
| Bonds payable | 1,000,000 | |||
| Buildings | 1,000,000 | |||
| Cash | 1,000,000 | |||
Explanation of Solution
- Recording the asset acquisition
- Recording the donation received from donor
- Recording the sale of investment
- Recording the issue of bonds
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Students have asked these similar questions
b. Prepare journal entries for the following selected transactions of the Eastern Kidney Association, which uses the
restricted fund method and has an operating fund, a capital fund and an endowment fund:
●
●
●
Pledges totaling $325,000 were received of which $65,000 applies to the operations of the following year. It is
estimated that 3% of the pledges will be uncollectible.
The association purchased office equipment at a cost of $5,100.
Pledges of $285,000 were collected and pledges totaling $3,750 were written off as uncollectible.
Air time with a value of $7,200 was donated by a local radio station.
Interest and dividends received were $13,700 on endowment fund investments. Endowment fund earnings are
unrestricted.
Depreciation for the year amounted to $35,600.
Question text
The following inter-fund transactions occurred in ULUS City between General Fund and Enterprise Fund.Journalize these transactions in both funds.
1. Enterprise fund liquidated one of their projects and sent the remaining cash $1,000 to the general fund.
2. General fund paid $7,000 as auditing fees, 2,000 of them for Enterprise fund. It now bills the Enterprise fund for that fund’s share of service.
3. General fund lent $11,000 as long term loan to the Enterprise fund.
4. General fund paid $5,000 cash for five copy machines. It discovers that $1,000 of that amount is for Enterprise fund. General fund required reimbursement.
Record the following events that affect (1) Public University and (2) Private University: a. A private grant of $200,000 was received to be used exclusively for defraying costs of holding conferences on the topic of genes. b. By year-end, $110,000 of the grant mentioned in item (a) had been applied to the purpose stipulated. c. The grant provided that amounts not awarded by year-end are to be transferred to the endowment fund. The liability to that fund is recorded. d. An alumnus, who was a former athlete, contributed $15,000 to assist in the search for a basketball coach.
Chapter 19 Solutions
Advanced Financial Accounting
Ch. 19 - Prob. 19.1QCh. 19 - Prob. 19.2QCh. 19 - Prob. 19.3QCh. 19 - Prob. 19.4QCh. 19 - Prob. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.11QCh. 19 - Prob. 19.12QCh. 19 - Prob. 19.13QCh. 19 - Prob. 19.14QCh. 19 - Prob. 19.15QCh. 19 - Prob. 19.16QCh. 19 - Prob. 19.17QCh. 19 - Prob. 19.18QCh. 19 - Should a rotary club, an ONPO, report depreciation...Ch. 19 - Prob. 19.20QCh. 19 - Prob. 19.1CCh. 19 - Prob. 19.2CCh. 19 - Prob. 19.3CCh. 19 - Prob. 19.4CCh. 19 - Prob. 19.5CCh. 19 - Prob. 19.7CCh. 19 - Prob. 19.1.1ECh. 19 - Prob. 19.1.2ECh. 19 - Prob. 19.1.3ECh. 19 - Prob. 19.1.4ECh. 19 - Prob. 19.1.5ECh. 19 - Prob. 19.1.6ECh. 19 - Prob. 19.2.1ECh. 19 - Prob. 19.2.2ECh. 19 - Prob. 19.2.3ECh. 19 - Prob. 19.2.4ECh. 19 - Prob. 19.2.5ECh. 19 - Prob. 19.2.6ECh. 19 - Prob. 19.2.7ECh. 19 - Prob. 19.2.8ECh. 19 - Prob. 19.2.9ECh. 19 - Prob. 19.2.10ECh. 19 - Prob. 19.2.11ECh. 19 - Prob. 19.2.12ECh. 19 - Prob. 19.3ECh. 19 - Prob. 19.4ECh. 19 - Prob. 19.5.1ECh. 19 - Prob. 19.5.2ECh. 19 - Prob. 19.5.3ECh. 19 - Prob. 19.5.4ECh. 19 - Prob. 19.5.5ECh. 19 - Prob. 19.5.6ECh. 19 - Prob. 19.5.7ECh. 19 - Prob. 19.5.8ECh. 19 - Prob. 19.5.9ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8.1ECh. 19 - Prob. 19.8.2ECh. 19 - Prob. 19.8.3ECh. 19 - Prob. 19.8.4ECh. 19 - Prob. 19.8.5ECh. 19 - Prob. 19.8.6ECh. 19 - Prob. 19.8.7ECh. 19 - Prob. 19.8.8ECh. 19 - Prob. 19.8.9ECh. 19 - Prob. 19.8.10ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 19.13PCh. 19 - Prob. 19.14PCh. 19 - Prob. 19.15PCh. 19 - Prob. 19.16PCh. 19 - Prob. 19.17PCh. 19 - Prob. 19.18PCh. 19 - Prob. 19.19PCh. 19 - Prob. 19.20PCh. 19 - Prob. 19.21PCh. 19 - Prob. 19.22PCh. 19 - Prob. 19.23PCh. 19 - Prob. 19.24.1PCh. 19 - Prob. 19.24.2PCh. 19 - Prob. 19.24.3PCh. 19 - Prob. 19.24.4PCh. 19 - Prob. 19.24.5PCh. 19 - Prob. 19.24.6PCh. 19 - Prob. 19.24.7PCh. 19 - Prob. 19.24.8PCh. 19 - Prob. 19.24.9PCh. 19 - Prob. 19.24.10PCh. 19 - Prob. 19.24.11PCh. 19 - Prob. 19.24.12PCh. 19 - Prob. 19.24.13PCh. 19 - Prob. 19.24.14PCh. 19 - Prob. 19.24.15PCh. 19 - Prob. 19.24.16PCh. 19 - Prob. 19.24.17PCh. 19 - Prob. 19.24.18PCh. 19 - Prob. 19.24.19PCh. 19 - Prob. 19.24.20PCh. 19 - Prob. 19.25PCh. 19 - Prob. 19.26P
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