Assignment is a 75 word minimum response (D.B.) question. Textbook in use: Dye, T. R. & MacManus, S. A., (2012). Politica in states and communities (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
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- To make sure you are up to date on the special guidelines the GASB has declared, your manager asked you to research GASB Statement No. 56. He also asked you to show him, side by side, how government accounting journal entries might differ from for-profit journal entries in these similar events. Write 500–750 words that addresses the following: When was GASB Statement No. 56 initiated? In your own words, what is the essence of the new ruling? Why did the GASB probably deem it as being necessary? How might GASB Statement No. 56 change the activities of any accountant performing governmental accounting? Create journal entries for all of the following situations. On 10/1/2010, a for-profit Company A provides $100,000 of service to Company B. Company B plans to pay their bill 90 days later. Create the journal entry when the service is provided. Create the journal entry when the cash is received. On 12/1/2010, the city’s recreation department receives a government grant of $100,000 specifically to use for next year’s park upgrades, which will begin on 1/1/2011. Create the journal entry made when the cash is received. Create the journal entry to be made on 1/1/2011. A for-profit retail store buys $200,000 of inventory on 9/1/2010. Create the proper journal entry to show purchase of this inventory. A local city park buys $200,000 of food merchandise for later resale. It uses the purchase method to account for inventory. Create the proper journal entry for when this purchase is made. A nonprofit organization receives a $250,000 donation on 12/1/2011, but the donor specifically wants it spent in 2012. Create the journal entry or entries to show the proper recording of revenue (this may require more than on journal entry). Create the subsequent journal entry to show spending of the funds.
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