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posledela
2 years ago
12

The City of McNeely sold bonds in the amount of $25,000,000 to finance the construction of a public health center. The bonds are

serial bonds and were sold at par on January 1, the first day of a fiscal year. Shortly thereafter a construction contract in the amount of $22,000,000 was signed and the contractor commenced work. By year-end the contractor had been paid in full for all billings to date amounting to $12,000,000. Prepare, in general journal form, all journal entries that should have been made during the fiscal year ended December 31 to record the preceding information in the capital projects fund. (No closing entry is required).
Business
1 answer:
Orlov [11]2 years ago
7 0

Answer:

1. To Record the cash received on issue of bonds.

Date     Account Titles and Explanation          Debit              Credit

             Cash                                                  $25,000,000

                   Other financing uses-Bond proceeds                  $25,000,000

              <em>(To record the cash received on the issue of Bond)</em>

2. To Record the inception of the construction contract.

Date     Account Titles and Explanation          Debit              Credit

             Encumbrances                                 $22,000,000

                       Encumbrances outstanding                           $22,000,000

             <em>(To Record the inception of the construction contract) </em>

3. To Record the encumbrances outstanding on account of the construction contract.

Date     Account Titles and Explanation      Debit             Credit

            Encumbrances outstanding        $12,000,000

                    Encumbrances                                              $12,000,000

          <em> (To Record the encumbrances outstanding on account) </em>

Date     Account Titles and Explanation        Debit            Credit

              Construction Expenditure            $12,000,000

                       Construction payable                                 $12,000,000

          <em> (To Record the encumbrances outstanding on account) </em>

<em />

4. To Record the transfer of the balance in the fund balance account.

Date     Account Titles and Explanation        Debit            Credit

             Other Financing sources -            $25,000,000

             Proceed of Bonds

                     Fund balance - Restricted                            $13,000,000

                     Construction Expenditure                             $12,000,000

           <em> (To record the construction expenses paid)</em>

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miskamm [114]

Answer:

Part 1. Monthly  health insurance benefit for job A is $205

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Part 2. The yearly value of the life insurance policy for job A is $480

The yearly value of the life insurance policy for job B is $600

Part 3. The yearly value of the 401 (k) match from job A is $3, 250

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Explanation:

Part 1. The health insurance benefit per month for job A = $300 - $95 = $205

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The annual health insurance benefit = $295×12 = $3,540

Part 2. The monthly life insurance plan for job A = $40

The yearly value of the life insurance policy for job A = $40 × 12 = $480

The monthly life insurance plan for job B = $50

The yearly value of the life insurance policy for job B = $50 × 12 = $600

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3 years ago
Santayana Company purchased a machine on January 1, 2011, for $20,000 with an estimated salvage value of $5,000 and an estimated
Aliun [14]

Answer:

$1,125

Explanation:

Given that,

Cost of machine = $20,000

Estimated salvage value = $5,000

Estimated useful life = 8 years

Depreciation refers to the reduction in the value of the fixed assets of a particular company with the passage of time.

Here, we are using the straight line method,

Annual depreciation is as follows:

= (Cost of machine - Salvage value) ÷ Estimated useful years

= ($20,000 - $5,000) ÷ 8

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Depreciation amount for the year 2011 = $1,875

Depreciation amount for the year 2012 = $1,875

Therefore, the book value of the machine at the beginning of January 1, 2013 is as follows:

= Cost of machine - Depreciation amount for the year 2011 - Depreciation amount for the year 2012

= $20,000 - $1,875 - $1,875

= $16,250

Now, the Santayana decides the machine will last 12 years from the date of purchase and we have already deduct the depreciation for the 2 years. So, we need to consider only 10 years for calculating the new annual depreciation.

Salvage value remains the same.

New annual depreciation:

= (Book value at the beginning of 2013 - Salvage value) ÷ Useful life

= ($16,250 - $5,000) ÷ 10

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3 years ago
Aegis Industries Inc., is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial s
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Answer:

The calculations are shown below:

Explanation:

The computation is shown below:

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1-b Average days to sell inventory is computed by considering the

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For year 2015, it is

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= 51.48 days

For year 2013, it is

= 365 ÷ 7.14

= 51.12 days

2. As we can see that the aegis industries inc is performing better than the Snow Pack Corporation as aegis industries has 7.14 times in 2015 as compare to the 5.5 times in 2015  

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