Problem
This professors makes us check our work in a plagerism checker before we can submit the work
1. Research the Orange County, CA bankruptcy issue in 1994. What were the events that led up to the collapse? What are the lessons learned and how can governments protect themselves from this happening in the future?
2. In your own words explain under what circumstances would a government report restricted cash and investments?
3. Suppose a local government invests in 20-year U.S. Government Bonds and large cap stocks. Assess each of these three risks for these two types of investments.
4. Explain in your own words the various types of transactions that are recorded in the capital projects funds.
5. Typically governments issue bonds to finance the cost of long-term construction projects. Initially, the bond proceeds are recorded in the debt service funds (more on that in Week 4), and then transferred to the capital projects funds to pay for construction expeditures. Provide an example of the journal entry that transfers the proceeds from the debt service funds of $1.0 million into the capital projects funds.
6. A government pays $260,000 in construction expenditures - provide an example of the journal entry to record these expenditures in the capital projects funds.