Government and Non-Profit Accounting / ACCT 321

●The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

●Assignments submitted through email will not be accepted.

●Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

●Students must mention question number clearly in their answer.

●Late submission will NOT be accepted.

●Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

●All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.

●Submissions without this cover page will NOT be accepted.

Assignment Question(s): (Marks 15)

(5 Marks)

Prepare entries to record the following transactions related to acquisition of capital assets by a county. The county does not use encumbrance accounting.

a. The county issues general obligation bonds in the amount of SAR 900,000, receiving cash for the full face amount of the bonds. The cash will be used to buy capital assets.

b. The county buys a prefabricated building for SAR 750,000, using part of the bond proceeds. The building is delivered and the invoice for the building is approved.

c. The invoice approved in b. is paid.

d. The General Fund transfers cash of SAR 55,000 to another fund in anticipation of the payment of the first installment of interest (SAR 30,000) and principal (SAR 25,000) on the debt.

e. The first installment of debt service on bonds issued in (a) becomes due and payable.

f. Debt service on the bonds issued in a. is paid.

Q2. Following information are related with Internal Service Fund of City of Jeddah. You are
required to prepare a Statement of Cash Flows for the year ended December 31, 2018.

(5 Marks) Amount ($)

Operating income	68,400
Increase in Inventories	27,200
Interest received	800
Acquisition of Capital Assets	2,800
Payment to Suppliers	32,000
Depreciation expense	29,600
Payments for Rent	21,200
Increase in Accounts Payable	54,400
Receipts from Customers	378,400
Payment to Employees	200,000
Cash balance at the beginning of the year	584,800

Q3. The following transactions are related with a Township Debt Service Fund. Prepare journal
entries to record the transactions in the Debt Service Fund.
(5 Marks)
a. The Township levies a special property tax amounting to $1,750,000 to pay debt
service on its long-term general obligation debt. The tax must be accounted for in
the Debt Service Fund.
b. All the property taxes levied for debt service purposes are collected.
c. The Township invests $525,000 in a six-month certificate of deposit.
d. Debt service (interest of $350,000 and principal of $700,000) becomes due and
payable.
e. The debt service liabilities are paid.
f The certificate of deposit in c. matures and the Township receives a total of $535,500,
which includes $10,500 of interest.