Q1. Prepare a Statement of Cash Flows from following information related toInternal Service Fund of City of Riyadh.
Purchase of Capital Assets
Receipts from Customers
Payment to Suppliers
Cash Balance at the Beginning of the year
Operating Income
Depreciation
Decrease in Inventories
Increase in Account Payable
Interest Received
$ 50,000
400,000
85,000
25,000
9,000
8,000
2,000
4,000
12,000
Q2. Prepare entries to record the following transactions related to acquisition
of capital assets by a county. The county does not use encumbrance
accounting.
a.
The county issues general obligation bonds in the amount of SAR
900,000, receiving cash for the full face amount of the bonds. The
cash will be used to buy capital assets.
b.
The county buys a prefabricated building for SAR 750,000, using
part of the bond proceeds. The building is delivered and the invoice
for the building is approved.
c.
The invoice approved in b. is paid.
d.
The General Fund transfers cash of SAR 55,000 to another fund in
anticipation of the payment of the first installment of interest (SAR
30,000) and principal (SAR 25,000) on the debt.
e.
The first installment of debt service on bonds issued in (a) becomes
due and payable.
f.
Debt service on the bonds issued in a. is paid.
Q3. Describe the term “The Financial Reporting Entity” and its various types.
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