Needed done asap

Needed done asap

Problem 1:

Benton County voted to establish an internal service fund to account for printing and copying for all its departments and agencies. The County engaged in the following activities related to the new fund. REQUIRED: Prepare transactions to record these events in the internal service fund. If no entry is required, write “No Entry Required.”

1. The County Commission voted to transfer $200,000 from the General Fund to the internal service fund to establish the new fund.

1. The fund entered into a capital lease for equipment to be used in printing activities. The total present value of the lease obligation is $600,000.

1. Issued $1 million in general obligation bonds at 101. The bonds were issued to acquire additional equipment. The bonds are to be serviced from the internal service fund.

1. Purchased equipment at a cost of $980,000. The equipment has an estimated useful life of nine years and an estimated salvage value of $80,000.

1. Billed the General Fund for copying and printing charges, $70,000.

1. Paid salaries to printing employees, $50,000.

Problem 2:

Geneva City has prepared all of the elements of its CAFR. REQUIRED: Numbering from one to ten, indicate the order in which each of these elements should appear in the City’s CAFR.

____ Auditor’s report

____ Letter of transmittal

____ Required supplementary information other than MD&A

____ Government-wide financial statements

____ Notes to financial statements

____ Combining statements for nonmajor funds

____ Combining statements for major discretely presented component units

____ Management’s Discussion and Analysis (MD&A)

____ Statistical tables

____ Governmental fund statements

Problem 3:

Richards College is a not-for-profit college. Record the following transactions for Richards College. The College has a June 30, 2007 fiscal year.

a. Tuition revenue for the Fall semester 2006(August – December) was $4 million; tuition for the Spring semester 2007 (January – May) was $3.8 million; tuition for the Summer semester 2007 (June 1-August 15) was $1 million. All tuition was received in cash.

b. Faculty salaries for the Fall semester were $3 million; for the Spring semester, $2.9 million; for the Summer semester were $.5 million. All salaries are paid at the end of the month earned. Salaries earned in summer are June $0.2 million, July $0.2 and August $0.1 million.

c. During June, $3.2 million of tuition applicable to the Fall 2007 was received in cash.

Problem 4:

GASB has encouraged governmental entities to publish service efforts and accomplishments data. What is the role of auditors in attesting to service efforts and accomplishment data?

Problem 5:

What is the Single Audit Act? Your answer should address at least the following questions. What is its purpose? How does it affect audits of entities that receive federal financial assistance? How do its requirements differ from AICPA audit requirements?

Problem 6:

Currently the federal government maintains a dual system of accounts–budgetary and proprietary accounts. What are the two types of accounts? Why does the federal government keep two types?