If generally accepted accounting principles are good enough for business

organizations, then why can't we just apply them to non-profit entities such as
governmental and not-for-profit organizations?
This question is from acct567 "Accounting for government and nonprofit entities" 15
editions.
There is no universal GAAP standard and the specifics vary from one geographic
location or industry to another. In the United States, the Securities and Exchange
Commission (SEC) mandates that financial reports adhere to GAAP requirements.
The Financial Accounting Standards Board (FASB) stipulates GAAP overall and the
Governmental Accounting Standards Board (GASB) stipulates GAAP for state and
local government. Publicly traded companies must comply with both SEC and GAAP
requirements.
Accounting for Governmental and Nonprofit Entities (15th Edition)
Chapter 7, Problem 8SEP
7-8 Enterprise Fund Journal Entries and Financial statements
Other information on the questions is not related with my questions
Home work just request to make journal entry
Please reply to my questions directly
Government accounting textbook
Homework request journal entry:
Homework question: (City of Bay Lake Water Utility Fund)
The utility fund transfer $800000 in excess operating income to the General
fund
Chegg post answer as follows,
Debit Inter-fund transfer outs 800000
Credit cash 800000
Question:
What type of account is Inter-fund transfer outs to General fund from utility fund?

Is this transfer was "advance to general fund"? expense? other expense,

If not, what is it? General fund need to pay back?
Why this amount $800000 showed in statement of revenue, expense and changes in fund position?
11 answers

1. Inter fund transfer is a nominal account.

2. This transfer from one fund to another is nothing but "appropriation of profit;
or simply creation of reserve for future endeavors. It is not an expense neither
advance to general fund but appropriation (in simple words keeping this
amount separately for specific purpose or future use).
3. No general fund need not pay it back as it is not any advance or loan. A part of
operating income is kept separately in general fund for specific purpose or
future use. Thus, no pay back requirement arises. The amount in general fund
is to be used for funding general operations and activities not requiring the use
of other funds.

Question: I'm having trouble solving this probelm, Chapter 2...

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I'm having trouble solving this problem, Chapter 2 exercise and problems number 2 (2-2) I would
really appreciate your help! Thanks!
Accounting for Governmental and Nonprofit Entities 16th Edition

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Governmental and nonprofit accounting, particularly municipal accounting, has

experienced tremendous growth and offers great job and advancement opportunities.
With the increasing complexity of governmental accounting, this growth is projected to
continue for years.
Participants in the Accounting for Governmental and Nonprofit Organizations
Professional Achievement Award Program will gain a comprehensive body of knowledge
and skills for accounting appropriate for:

School districts
Health care organizations
Charities

Special districts, including water, transportation, and parks and

recreation
This program is designed for:

Accountants
Finance professionals
Administrative analysts
Accounting students
Directors and managers for government and nonprofit organizations

Governmental & NonProfit Accounting, please answer the following:

1. How does accounting in a governmental fund for the purchase of supplies from an
outside vendor differ from the purchase of supplies from an internal service fund?

2. Explain why some governments may account for inventories of supplies using the
purchases method in the General Fund and the consumption method at the
government-wide level? How would the amount reported for expenditures in the
General Fund compare with the amount of expenses reported at the government-wide
level if the two methods of inventory accounting are used?

Multiple Choice:

The Village of Thompson borrowed $1,000,000 from a local bank by issuing 4% tax
anticipation notes. If the village repaid the tax anticipation notes six months later
after collecting its next installment of property taxes, the General Fund journal entry
to record repayment will include: a) A debit to Tax Anticipation Notes Payable for
$1,000,000; b) A debit to Expenditures for $20,000; c) A debit to Expenditures for
$1,020,000, or d) Both a and b

*From Accounting for Governmental and Nonprofit Entities 17th Edition, Chapter 4. If
you need any other information, let me know

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How does accounting in a governmental fund for the purchase of supplies from an
outside vendor differ from the purchase of supplies from an internal service fund?

In government fund purchase is recorded using encumbrance accounting in which

reversal is made on receipt of goods, only the basic difference is that when purchased
from outside vendor it is recorded at purchase price and when purchased from
internal service, recorded at cost.

Explain why some governments may account for inventories of supplies using the
purchases method in the General Fund and the consumption method at the
government-wide level? How would the amount reported for expenditures in the
General Fund compare with the amount of expenses reported at the government-wide
level if the two methods of inventory accounting are used?

Purchase method is based on modified accrual basis of accounting in which full

expenditure is recorded at the time of purchase on the other side consumption
method is based on accrual basis of accounting in which expenditure is recorded on
supplies used during the year. Purchase method is used at general fund level since it
is based on modified accrual basis, and at government wide level consumption
method is preferred as per guidelines of GASB.

The Village of Thompson borrowed $1,000,000 from a local bank by issuing 4% tax
anticipation notes. If the village repaid the tax anticipation notes six months later
after collecting its next installment of property taxes, the General Fund journal entry
to record repayment will include:

a) A debit to Tax Anticipation Notes Payable for $1,000,000;

b) A debit to Expenditures for $20,000;

Ans is c) A debit to Expenditures for $1,020,000, or

d) Both a and b
Governmental & NonProfit Accounting, please answer the following:
1. Compare and contrast the valuation of general capital assets of a government to the valuation of
assets of a for-profit entity. What special issues may arise in valuing a government's assets that
generally do not occur in a for-profit company?

Multiple Choice:
2. Maxim County just completed construction of a new town hall to be used for its governmental
offices. The employees have moved in and the new building is officially in use. The county used a
capital projects fund to account for the construction of the building, and the building came in under
budget. There is a fund balance of $12,000. The county should (a) Transfer the remaining funds to
the General Fund to pay operating expenses; (b) Transfer the remaining funds to the debt service
fund which will be handling the long-term debt incurred for the construction of the building; (c) Return
the excess to the source of the restricted funding; or (d) All of the above may be appropriate ways to
treat the fund balance
3. The City of Deauville entered into a service concession arrangement (SCA) with Water Wonders,
Inc to operate the city pool for the next 20 years. Water Wonders (WW) has agreed to pay the city
$3,000,000 up front as a part of this agreement. According to the agreement, WW will be responsible
for operating the pool, and the city will continue to be responsible for costs related to maintaining it.
In addition, WW has the right to collect fees from the public for their use of the pool, although the
rates are subject to approval by the city. The city should: (a) Remove the cost of the pool and the
related accumulated depreciation from its records because it has effectively transferred the asset to
WW; (b) Record the receipt of the cash payment, a liability for the cost of required future
maintenance, and a deferred inflow of resources for the difference between the cash payment and
the liaibility; (c) Reord the payment as a cash receipt and as other financing source for the General
Fund; or (d) Set up a proprietary fund to record all transactions related to the SCA.
4. Centerville enters into a capital lease for new copiers on all its city hall offices. In the General
Fund, it should report: (a) Equipment balances equal to the lease payments made during the year;
(b) Capital expenditures equal to the lease payments made during the year; (c) Equipment balances
equal to the capitalization cost of the fixed assets regardless of the amount of lease payments made
during the year; or (d) Capital expenditures equal to the capitalizable cost of the fixed asset
regardless of the amount of lease payments made during the year.
5. The following balances are included in the subsidiary records of Sinclair:
Town hall building

5,000,000

Town pool (supported by user fees)

1,000,000

Town pool maintenance equipment

25,000

Police cars

200,000

Equipment

75,000

Office supplies

What is the total amount of general capital assets held by the town?
a. $5,275,000
b. $5,285,000
c. $6,275,000
d. $6,285,000
From Accounting for Governmental and Nonprofit Entities 17th Edition, Chapter 5.

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5.

Hence, the correct option is "a"

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Question: I have to do the City of Smithville project in My ...

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I have to do the City of Smithville project in My Accounting for Governmental & Nonprofit Entities
class. I am trying to find a solution manual for it but don't know where to locate it. Can you help?

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Why do governments and nonprofits engage in business-type activities?

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Ans: Governments and nonprofits are engaged in business type activities because they
aim to serve the public at large also with the intention of not making profit, they just
utilize the resources of the society and render the service to the public, another theory
is that special treatments are given to these entities when they appear in the form of
business thus it allows for tax exemption as well. In the nutshell, it can be said that
government aims to utilize the society resources in order to render the services to the
society and thus gets into the business type to better manage the resources and render
the benefit to the society.
this is accounting for governmental and nonprofit organizations.
King Hospital, a private nonprofit hospital, had the following transactions occur for the month of April
20X3 for their General Fund.
(1) The hospital billed patients for $300,000 during the month. Of this amount, 98% is expected to be
collectible.
(2)Nurse and doctors employed by the hospital were paid in the amount of $125,000.
(3)The chief administrator of the hospital was paid her salary of $15,000.
(4)The hospital paid its utility bill in the amount of $5,000.
(5)Depreciation on the equipment for the month was $30,000.
(6)Doctors donated services to the hospital in the amount of $3,000.
(7)An unrestricted donation of $4,000 was received.
REQUIRED: Preparing all general journal entries required, in proper form, to record the above
transactions. Be sure to label the accounts to indicate the proper account classification.

Expert Answer
S.No

Account Description

Receivables from Patients

Receipts from Patients

Debit

Credit

3,00,000
3,00,000

Professiona services

1,25,000

Cash/Bank
3

Salary

1,25,000
15,000

Cash/Bank
4

Utility Bill

15,000
5,000

Cash/Bank
5

Depreciation

5,000
30,000

Fixed assets
6

Professional services

30,000
3,000

Donation received
7

Cash/Bank
Donation received

Comment

3,000
4,000
4,000