Fiduciary funds are accounted for differently than permanent funds, even though both may account for nonexpendable resources.
Christopher City received a contribution of $520,000 to provide scholarships to the children of deceased city employees. The donor stipulated that all income, including both realized and unrealized investment gains, be used to support the beneficiaries.
1. Record journal entries for the following assuming that the gift is to be accounted for in a private purpose trust (fiduciary) fund.
1. The gift was composed of
o cash of $20,000
o marketable securities with a fair market value of $100,000
o a building with a fair market value of $400,000 and an estimated useful life of 40 years
2. The city leased the building as office space to Brooks Law Firm. It collected $46,000 in rent, and it incurred expenses, other than depreciation, of $15,000. The city records depreciation on the straight-line basis.
3. The city sold $20,000 of the marketable securities for $26,000. At year-end, the remaining securities had a market value of $97,000.
4. It earned and received dividends of $5,000.
2. The city closed the fund's revenue and expense accounts and distributed to beneficiaries the total amount available for distribution. It then closed the distribution account. Prepare the entries to make the distribution and close the accounts.
3. Prepare the fund's year-end statement of fiduciary net assets.
4. How is the fund reported in the city's government-wide statements? Explain.
5. Suppose the trust is established to benefit programs and activities of the city itself. In what type of fund is it accounted for? What are the main differences in accounting principles? How is it reported in the city's government-wide statements?© BrainMass Inc. brainmass.com October 25, 2018, 8:56 am ad1c9bdddf
You will find in attachment an Excel file with two sheets:
Sheet 1: ...
Solution is provided through a dynamic Excel sheet showing journal entries for the private purpose trust (fiduciary) fund, closing entries and financial statements as well as insights on answering development questions. Discussed how fiduciary funds are accounted for differently than permanent funds, even though both may account for nonexpendable resources. Prepared the fund's year-end statement of fiduciary net assets. Discussed how is the fund reported in the city's government-wide statements.
Business Cases: AOL and Time Warner; The Ax Falls on Sunbeam's Chainsaw Al; Harley-Davidson
The following case study questions are based on the reading about the mentioned companies and taking conclusions based on the reading of the textbook: Bovee, C.L., Thill, J.V. & Mescon, M.H. (2005). Excellence in Business, Revised Edition. New Jersey. Prentice Hall.
Alternatively, I guess one has the possibility to answer these questions by reading on the companies' cases.
AOL and Time Warner: Fragile Promises
(Pages 161-162). QUESTIONS:
? Why did the media refer to the merger as the deal of the century?
? Why was Time Warner eager to merge with AOL?
? What challenges did AOL and Time Warner face as a merged company?.
? Visit the Time-Warner Website (http://www.timewarner.com). Review the site to get the latest news about the fate of the merger. How is the company doing financially? How much turnover has occurred among high-level executives? If any parts of the business have been sold off, what has the acquiring company said about future prospects?
The Ax Falls on Sunbeam's Chainsaw Al.
(Pages 187-188). QUESTIONS:
? Why were Dunlap's goals unrealistic for Sunbeam?
? Was Dunlap's slice-and-dice plan a long-term or short-term strategy. Please explain.
? Why did Dunlap's turnaround strategy backfire?
Harley-Davidson-From Dysfunctional to Cross-Functional.
(Pages 212-213). QUESTIONS:
? During Teerlink's tenure as Harley's Chief Financial Officer, was the
organization structure flat or tall? Centralized or decentralized?
Explain your answers.
? As Chief Executive Officer, how did Teerlink change the organizational structure?
? Why does Harley-Davidson include outside suppliers on its cross-functional teams?
I am looking for help with the questions. I want as much information as possible on each case e.g, articles, newspaper clips, etc.
Thank you for this assistance.View Full Posting Details