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

question 72

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-Based 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.

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Definitions:

Noncompete Agreements

Legal contracts restricting an employee's ability to work in competing businesses after leaving an employer.

Trade Secrets

A plan, process, or device that is used in a business and is known only to employees who need to know the secret to carry out their jobs.

Innocent Third-Party

An individual or entity that is not involved in a legal dispute or transaction but may be affected by its outcome.

Restrictive Employment Covenant

A promise by an employee in an employment contract not to work for anyone else in the same field of employment for a specified time period within a particular geographical area.