Accounting Homework Help

I have put in bold the items that I chose.

Question 2.

A county

receives $10,000,000 from a private foundation. The foundation specifics that the $10,000,000 must be used for county park maintenance. The county reports activities related to this contribution in a special revenue fund. During the year, the county spends $1,000,000 on park maintenance. At year-end, how does the special revenue fund report fund balance?

a. Non-spendable $10,000,000 and restricted $(1,000,000)

b. Restricted $10,000,000 and assigned $(1,000,000)

c. Restricted $9,000,000

d. Committed $9,000,000

Question 11.

At the beginning of the fiscal year, a general fund leases property. The lease has a term of 5 years. At the time the lease is initiated, the present value of the future lease payments is $3,000,000. The lease agreement reflects an implicit interest rate of 4 percent. The first payment of $500,000 is made at the end of the fiscal year. On its operating statement for the year, the general fund reports

a. other financing sources of $3,000,000 and a capital outlay expenditure of $500,000.

b. a capital outlay expenditure of $500,000.

c. a capital outlay expenditure of $3,000,000 and other financing sources of $3,000,000, an expenditure for interest of $120,000, and an expenditure for principal of $380,000.

d. an expenditure for interest of $120,000.