There are numerous strategies available when campaigning to pass a school bond at the local level. Examine the information you have regarding school bonds, including the purpose and impact on taxpayers in a district. Since school bonds must be voted on by the community, and if passed increase property taxes, it is integral to connect with the members of the district that will be impacted. To pass a school bond, a committee must be created. A second important strategy to pass a school bond at the local level would be to develop relationships within the community, through the efforts of the committee, and inform the voting public of the issues related to the bond.
How will you ...
School bonds are designed to provide funds for a need in the district. This requires a vote as bonds increase property taxes. There are various effective strategies to improve a bond passing at the local level. A committee is a necessary component to this process. Selecting members and their duties are critical to this approach. 426 words.
Government Accounting and Purchasing Bonds
The accounting for trusts is dependent upon donor stipulations.
To promote computer education, a leading computer manufacturer donates $4 million to the Kerrville Independent School District. The donor stipulates that the district is to establish an endowment, from which only income is expendable. Income is defined to include interest, dividends, and investment gains. All income is to be recorded initially in a (nonexpendable) permanent fund. Each year the district is to transfer to an expendable endowment fund (i.e., a special revenue fund) all income of the year that exceeds the rate of inflation, as measured by
the consumer price index times the beginning fund balance. The expendable funds are to be used exclusively to acquire computer-related materials and to provide computer training for teachers. In the year the contribution was received, the district
a. Purchased bonds having a face value of $3 million for $2.97 million and common stock for $1 million
b. Received $180,000 in interest and recognized an increase of $3,000 in the fair value of the bonds
c. Sold $500,000 of the common stock at a gain of $50,000 and used the proceeds to purchase additional common stock
d. Transferred expendable income to a newly established special revenue fund (During the year the consumer price index increased by 5 percent.)
1. Prepare journal entries, including closing entries, in the permanent fund to record the year's transactions.
2. Prepare a statement of revenues, expenditures, and changes in fund balance and a balance sheet for the permanent fund.
3. Some donors stipulate that no investment gains are expendable. What is the most probable purpose of that restriction? What is its limitation? In what way is the approach taken by the donor in this example preferable?
4. How would the permanent fund be reported in the school district's government-wide statements?
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