Inter Fund Transactions and Capital Assets Discussion and Presentation

Golden Van Dyke is a new member of the City Council for the City of Andyville, AL.  He is a business professional and has used Comprehensive Annual Financial Reports (CAFRs) in his previous positions. Golden has some knowledge of the governmental accounting processes and has asked you two questions in order to enhance his decision making; 

(1) How does Andyville account for inter-fund transactions?

(2) How does Andyville account for the acquisition and disposition of capital assets?  Both questions relate to the governmental funds

Resources: Accounting for Government & Nonprofit Organizations: Chapter 2, 4, 5, 6, and the course packet. Examine the guidance, examples, and exercises provided to formulate a proper response to Golden’s inquires.  

Analysis:  We want to provide Mr. Van Dyke with the accounting for inter-fund transactions and the acquisition and disposition of capital assets.  Specifically, how they are measured, recognized, and how they are presented (disclosed) in the financial statements. You should create PowerPoint slides with a background on these topics, examples, journal entries, and other visual aids to help answer Mr. Van Dyke’s questions. 

 Resources: Accounting for Government & Nonprofit Organizations: Chapter 2, 4, 5, 6, and the course packet. Examine the guidance, examples, and exercises provided to formulate a proper response to Golden’s inquires.The following link is the book