Project #160573 - Government and Non-Profit Accounting

Business Tutors

Subject Business
Due By (Pacific Time) 12/18/2016 09:00 am

Accounting for Contributions Vary by Use

Green Hills County received the following two contributions during a year:

  • A developer (in exchange for exemptions to zoning restrictions) donated several acres of land that the county intended to convert to a park. The land had cost the developer $1.7 million. At the time of the contribution its fair market value was $3.2 million.
  • A local resident donated several acres of land to the county with the understanding that the county would sell the land and use the proceeds to fund construction of a county health center. The land had cost the resident $2.5 million. The county sold the land intended for the health center for $3 million thirty days after the end of its fiscal year.

Instructions:

  1. Prepare journal entries to record the contributions. Be sure to specify the appropriate fund in which they would likely be made.
  2. Comment on and justify any differences in the way you accounted for the two contributions.
  3. Comment on how each of the contributions would be reported on the county’s government-wide statements.
  4. How would your answers differ if the land intended for the health center were not sold by the time year-end financial statements were issued?

Paper Requirements:

  • Submit your responses to the following questions in a 1-2 page document in MS Word. Label each question clearly. Please include computations in a table.
  • For written answers, please make sure your responses are grammatically correct and free from spelling errors.
  • Follow the APA Requirements.
  • Cite at least two sources

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