A. Revenue Sources

-Taxes

-Intergovernmenal Revenue

-Fines and Penalties, Licenses and Permits

-Charge for Service

-Other Revenue

B. Expenditure Types

Character

-Current operating expenditures

-Capital outlay expenditures

Function/Program

-General government

-Education

-Public safety

-Health and welfare

-Culture and recreation

C. Internal Financing

-Making a loan

-Making a contribution of equity or revenue

-Making up a deficit

2 Special Revenue Fund

A. Revenue Sources

-Intergovernmental Revenue: special taxes, operating grants

-Fees: special fees

B. Expenditure Type

-Current operating expenditures

C. Expendable Trust Fund: Restricted Donation

Expendable principal and earning=Special revenue fund

Nonexpendable earnings only=permanent fund

D. Pass Thru Fund

Monitor=special revenue fund

Not monitor=agency fund

3 Capital Project Fund

Major capital assets

General fixed assets

A. Revenue Sources

-bond proceeds

-restricted grants

-Interfund transfers

-taxes specifically identified for construction

-investment earnings

B. Expenditure Type

Character

-Capital outlay expenditures

C. Special Assessments

Primarily or potentially liable=Debt service fund

Not primarily or potentially liable=Agency fund

4 Debt Service Fund

General obligation debt for governmental fund only

-general obligation bond

-revenue obligation bond

A. Revenue Sources

-Interfund transfers

-Allocated portion of property tax

-Investment earnings

B. Expenditures Type

Character

-Debt service expenditure

5 Permanent Fund

only earnings not principal may be expended

endowments

For the issuing company

at the date of issuance = no entry

if the rights lapse = no entry

Dr. Cash

---Cr. CS

---Cr. APIC from CS

When a stock right is received,

Cost(BV) = FMV of stock rights * Q / (FMV of stock rights :Q + FMV of stock * Q)

-A stock is purchased-

Dr. Investment in stock of A Co.

---Cr. Cash

-A stock right is received-

Dr. Investmet in stock rights

---Cr. Investment in stock of IGT

Dr. Cash

---Cr. Investment in stock rights

---Cr. Gain on sale of stock rights

Dr. Investment is stock

---Cr. Investment in stock rights

---Cr. Cash

Dr. Loss on expiration of stock rights

---Cr. Investment in stock rights

Year1

Construction costs incurred during the period 60,000

Estimated costs to complete at the end of each year 140,000

Billings during the year 100,000

Collections during the year 80,000

Dr. A/R-100,000

---Cr. Billing on LT contracts-100,000

Dr. Cash-80,000

---Cr. A/R-80,000

Dr. Construction in progress COGS-60,000

---Cr. Cash-60,000

Dr. Construction in progress Gross Profit-30,000

Dr. Construction expenses-60,000

---Cr. Construction revenue-90,000

Construction Revenue = Costs to date/(Costs to date + Estimated costs) * Sales - construction revenue incurred in previous year.

60,000/(60,000+140,000) = 900,000

CIP-Gross profit = Construction revenue - expenses = 90,000-60,000=30,000

$50 par CS

1. Issued $60, 1000 shares

Dr. Cash 60,000

---Cr. CS 50,000

---Cr. APIC from CS 10,000

2. Purchased 1000 shares @55

Dr. Treasury stock 55,000

---Cr. Cash 55,000

3. Sold 1000 shares @$65

Dr. Cash 65,000

---Cr. Treasury stock 55,000

---Cr. APIC from treasury stock 10,000

OR 3. Retired 1000 shares

Dr. CS 50,000

Dr. APIC from CS 10,000

---Cr. Treasury stock 55,000

---Cr. APIC from treasury stock 5,000

1. Issued $60, 1000 shares

Dr. Cash 60,000

---Cr. CS 50,000

---Cr. APIC from CS 10,000

2. Purchased 1000 shares @70

Dr. Treasury stock 70,000

---Cr. Cash 70,000

3. Sold 1000 shares @$65

Dr. Cash 65,000

Dr. Retained earnings 5,000

---Cr. Treasury stock 70,000

OR 3. Retired 1000 shares

Dr. CS 50,000

Dr. APIC from CS 10,000

Dr. Retained earnings 10,000

---Cr. Treasury stock 70,000

Par Value Method

2.

Dr. Treasury stock 50,000

Dr. APIC from CS 10,000

---Cr. Cash 55,000

---Cr. APIC from treasury stock 5,000

3.

Dr. Cash 65,000

---Dr. Treasury stock 50,000

---Dr. APIC from CS 15,000

OR 3.

Dr. CS 50,000

---Cr. Treasury stock 50,000

2.

Dr. Treasury stock 50,000

Dr. APIC from CS 10,000

Dr. Retained earnings 10,000

---Cr. Cash 70,000

3.

Dr. Cash 65,000

---Dr. Treasury stock 50,000

---Dr. APIC from CS 15,000

OR 3.

Dr. CS 50,000

---Cr. Treasury stock 50,000

Net income: 210,000

Weighted average # of shares outstanding: 100,000

convertible bonds to 6%, 20000 shares CS: 1,000,000

4/1 issued convertible bonds, par issue, 10%, 32,000 shares of CS: 1,000,000

Tax rate: 40%

N

Net income 210,000

6% convertible bonds 1000,000*0.06*(1-0.4)=36,000

10% convertible bonds1,000,000*0.1*(1-0.4)=45000

TOTAL=291,000

D

100,000

6% 20,000

10% 32,000/12*9=24000

Basic EPS = (Net income-PS dividends) / Weighted-average # of CS outstanding

1)

Net income: 130,000

PS dividends: 10,000

10%, $100 par, 1000 shares

CS outstanding from Jan: 100,000

Shares issued in 10% stock dividends declared at April 1: 10,000

shares issued for cash at Jul 1: 20,000

N = 130,000-10,000=120,000

D = 100,000*1.1 + 20,000/12*6 = 120,000

2)

CS outstanding: 250,000

3/31 issued 50,000 shares

income: 700,000

PS dividends: 80,000

N = 700,000-80,000 = 620,000

D = 250,000 + 50,000/12*9 = 287,500

Ratio = 2.16

3)

Opening balance: 00,000

4/1 20% stock dividend: 20,000

7/1 stock issued: 50,000

9/1 stock issued: 30,000

12/31 ending balance 200,000

50,000/12*6 + 30,000/12*4 =35,000

100,000*1.2 = 120,000

35,000+120,000=155,000

4)

1/1 CS: 100,000

7/30 3 for 1 stock split

net income: 600,000

N = 600,000

D = 100,000*3 =300,000

Ratio = 2

5)

5% Cumulative PS $5 par: 1,000,000(2004), 1,000,000(2003)

CS $10 par: 60,000(2004), 50,000(2003)

APIC from CS: 50,000(2004).　10,000(2003)

net income: 650,000(2004), 500,000(2003)

6/30, 2004, new shares were issued

no dividend in 2003

in 2004, declared 200,000 dividends

2004

N = 650,000 - 1,000,000*0.05 = 600,000

D = 5,000 + 1,000/12*6 = 5500

Ratio = 109

2003

N = 500,000 - 1000000 * 0.05 = 450000

D = 50,000

Ratio = 90

*not the amount of dividends paid

X = Year 3 ending dollar-value LIFO inventory

Year 1, cost index of 120, Layer in base-year dollars 4,000

Year 2, cost index of 140, Layer in base-year dollars 2,000

Year 3, cost index of 150, Layer in base-year dollars??, at current cost ending inventory 24,000

Year 3, ending inventory at base year cost:

24,000 / 1.5 = 16,000

Year 3 layer:

16,000 - 4,000 - 2,000 = 10,000

X:

10,000 * 1.5 = 10,500

4,000 * 1.2 =4800

2000 * 1.4 = 2800

TOTAL = 18100

X = amount of liabilities

Bonds payable---100,000

Discount on bonds payable---400

X = 99,600

2)

X = loss on redemption

Bonds at par---1,000,000

issued at 97

Due in 10 yrs

bond issue costs---50,000

Called at 104

5 yrs

Dr. Bonds payable--1,000,000

---Cr. Cash 1,040,000

---Cr. Discount on bonds payable--15,000

---Cr. Unamortized bond issue costs--25,000

Dr. Loss on early extinguishment--1,080,000

3)

On Oct 1, 2001, A Co. approved a plan to dispose of division's assets next year

estimated FV of the assets was 2,000 less than the carrying value

estimated operating losss of 10,000 for the period Jan 1 to Dec 31, 2001

X = loss from discontinued operations in 2001

122,000

including Jan to Sep operating losses and impairment loss

4)

12,000 in a saving account

semiannual compound interest

5 yrs later

the balance will be 19547

X = annual rate of interest

FV of 1, 10yrs

3%=1.344

5%=1.629

10%

5%*2 (semiannual!)

5)

X = total interest revenue

purchased 10,000, 8%, 6yrs note

6 equal annual payments of 5,000

9% yield rate

PV = 19000

X = 11000

-Assets under construction for an enterprise's own use

-Assets for sale or lease that are constructed as discrete project

lower of actual interest or avaidable interest

Avoidable interest

Average accumulated expenditures during construction * interest rate

When specific borrowings is greater than average accumulated expenditures, use the interest rate of specific borrowings

When average accumulated expenditures is greater than specific borrowings, use specific borrowing interest rate and weighted average of interest rate of other debt.

Equipment A: Cost 1000,000 Salvage value 100,000 Life 10yrs

Equipment B: Cost 500,000 Salvage value 50,000 Life 5 yrs

1) Annual depreciation

(1,000,000 - 100,000) / 10 = 90,000

(500,000 - 50,000) / 5 = 90,000

90,000+90,000=180,000

2) Average composite life

Depreciable cost / annual depreciation

900,000+450,000 /90000 =15yrs

No gain or loss is recognized when retired.

BV = Sales price