Your Portfolio Project will provide specific answers to the questions that follow. Apply what you have learned in this course to your answers to these questions.How would you report capital asset dama

Your Portfolio Project will provide specific answers to the questions that follow. Apply what you have learned in this course to your answers to these questions.

How would you report capital asset damages? (100 points)

Scenario 1:

During a recent hurricane in Jonesboro City, the community library suffered serious damage. The following shows some of the damage that occurred:

• The outdated electrical system needed to be rewired, which the brought the electrical system up-to-date with current city requirements.
• The flooring was replaced with the same materials.
• The walls were replaced with the same materials and painted.
• Some old furniture was not salvageable, which was in transition to the storage site before the storm hit. The new furniture had not arrived before the storm.
• Many of the books had water damage.

Required:

• Evaluate how the costs incurred should be classified. Would the repairs be categorized as enhancements or replacements?
• Evaluate the accounting and reporting of the library for the things that would be considered impairments.
• Evaluate the accounting treatment for the damaged furniture and the books.

What are GASB requirements for bonded debt? (100 points)

Scenario 2:

Town Oaks’ residents want to start a fund to improve their local community. Town Oaks, a gated community, has voted to create a neighborhood park with bonded debt. The bonds will be repaid by the residents and the following transactions are related to park debt:

• The community has a tax burden for the park of $5,000,000, which is imposed on January 1, 20X7.
• Payments start at the beginning of the current year and will be paid in 10 equal annual payments.
• 5% interest is due on the unpaid installments.
• Payments and interest on the unpaid payments was collected by December 31, 20X7.
• A small amount of the assessed receivables was reclassified to current in the amount of 20X8 installments.
• The initial principal payment of $500,000 and the interest on the debt was paid to bondholders on January 1, 20X8.

Required:

• Identify the type of fund the city should impose to account for this special assessed debt.
• Prepare journal entries for the city’s transactions.
• Identify how the city should report the fund in their financial statements?
• Identify how the city should report special assessed debt in their financial statements?
• Compare the treatments of special assessed debt from the United States with at least two other countries. Would the same reporting practices be used and why?

What are GAAP requirements for preparing financial statements? (100 points)

Scenario 3:

Use the following adjusted trial balance for Decatur Health Clinic to Create a statement of financial position, statement of functional expenses, statement of activities, and statement of cash flows in Microsoft Excel. Use formulas to link data when necessary.

Download the Decatur Health Clinic Adjusted Trial Balance at the bottom of the page.

Prepare all financial statements as of June 30, 20X7 including the following transactions.

• There were five functional expense categories, which salaries and fringe benefits totaling $288,410 were allocated to with the following percentages: counseling services, 30%; professional training, 25%; community service, 15%; management and general, 20%; and fund-raising, 10%.
• Occupancy and utility, supplies, printing and publishing, and telephone and postage expense were allocated to the programs using the same allocation procedures.
• The five expense categories received equal amounts of depreciation expense.
• Decatur Health Clinic had $162,150 of cash on hand at the beginning of the year and received cash from contributors of $305,200, which was unrestricted. $38,100 was restricted for the purchase of a machine for the clinic.
• Income earned and received on long- term investments was $9,200.
• The purchase of the machine for the clinic was $22,000 and $82,500 for operating expenses.
• Net pledges receivable increased $6,000, inventory decreased $1,000, accounts payable decreased $102,500, and there were no salaries payable at the beginning of the year.

Paper Requirements:

• Submit your responses to the questions in a 10-12-page Microsoft Word document. Include applicable heading for each set of questions and label each question clearly. Include computations in a table and show work.
• For written answers, ensure your responses are well-written.
• Be sure to follow the formatting guidelines outlined in the CSU-Global Guide to Writing and APA.