1. Assume that at January 1, 2011, the first day of the new fiscal period, the city council of Barb City approves the operating budget for the general fund, providing for $800,000 in revenue and $750,000 in expenditures. Approval of the budget provides the legal authority to levy the local property taxes and to appropriate resources for the expenditures. Record the transaction in journal.
2. Discuss in detail the following areas covered under partnership agreement.
- Manner of sharing profits.
- Limitations on withdrawals.
- Rights of partners.
- Conflicts of interest.
3. Prepare a schedule to Saeedâ€™s financial statements on Dec. 31, 2014 to U.S. dollars.
4. 1.On November 30, 20×5, Bow Company received with a cost denominated in pounds. During December 20×5 the dollarâ€™s value declined relative to the pound. Bow believe that the original exchange rate will be restored by the time payment is due in 20×6.
- State how Bow should report the impact, if any, of the changes in the exchange rate of the dollar and the pound on its 20×5 financial statement.
- Explain why reporting is appropriate?