On July 12, 2011, Fred City Ordered a New Computer

question 32

Essay

On July 12, 2011, Fred City ordered a new computer at an anticipated cost of $114,400. The computer was received on July 16 with an actual cost of $116,220. Payment was subsequently made on August 15, 2011.
Required:
(A.) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Fund Financial Statements.
(B.) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Government-Wide Financial Statements.

---

Definitions:

Expected Present Value

A financial metric that estimates the present value of future cash flows, adjusted for risk, and the time value of money.

Outflows

Cash or other resources going out of an entity, typically associated with expenses or investments.

Accelerated Depreciation

A depreciation method that expenses asset cost more rapidly in the initial period of its life.

Tax Purposes

The specific reasons or considerations for calculations or filings as required by tax laws.