1) What are some of the methods commonly used in allocating income and losses to the
partners?
2) The unadjusted trial balance for the general fund of the City of Hogs Breath at June
30, 2014, is as follows:
Debits
Cash$170,000
Due from agency fund25,000
Encumbrances120,000
Estimated revenues800,000
Expenditures610,000
Property taxes receivable110,000
Credits
Allowance for uncollectible taxes8,000
Appropriations790,000
Unreserved fund balance30,000
Reserve for encumbrances60,000
Revenues840,000
Vouchers payable107,000
Supplies on hand at June 30, 2014, totaled $8,000. The $120,000 encumbrance relates
to equipment ordered but not received by fiscal year-end.
Required:
Prepare a balance sheet for the general fund of the City of Hogs Breath at June 30,
2014.
3) Define a derivative instrument, and describe the keystones identified by the FASB
for the ac-counting for such instruments.
4) ODonnell Corporation incurred major losses in 2013 and entered into voluntary
Chapter 7 bankruptcy in the early part of 2014. By June 1, all assets were converted
into cash, the secured creditors were paid, and $150,000 in cash was left to pay the
remaining claims as follows.
Accounts payable$ 48,000
Claims prior to the trustees appointment21,000
Property taxes payable18,000
Wages payable (all under $4,650 per employee)54,000
Unsecured note payable60,000
Accrued interest on the note payable6,000
Administrative expenses of the trustee 30,000
Total$237,000
Required:
Classify the claims by their Chapter 7 priority ranking, and analyze which amounts will
be paid and which amounts will be written off.
5) What is the purpose of a combining work paper prepared by a trustee?
6) List some of the major differences in accounting between IFRS and U.S. GAAP.