Exam 17: Accounting for State and Local Governments, Part II

The City of Wade has a fiscal year ending June 30. Examine the following transactions for Wade:(A.) On 6/5/21, Wade opens a new landfill. The engineers estimate that at the end of 12 years the landfill will be full. Estimated costs to close the landfill are currently $4,800,000.(B.) On 6/18/21, Wade receives a donation of a vintage railroad steam engine. The engine will be put on display at the local town park. A fee will be charged to actually climb up into the engine. The engine has been valued at $650,000.(C.) On 6/30/21, Wade estimates that the landfill is 2% filled.Determine and prepare the general fund journal entries for the City of Wade for each lettered item for the purposes of preparing the fund financial statements.

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance.The following information relates to the activities within the Town of Portsmouth for the year of 2021. Prepare a Statement of Revenues, Expenditures and Other Changes in Fund Balances for the year ended December 31, 2021.

What are the three broad sections of a state or local government's CAFR?

The Town of Sitka opened a solid waste landfill in 2020 that was at 25% capacity on December 31, 2020 and at 60% capacity on December 31, 2021. The city initially anticipated closure costs of $2.8 million but in 2021 revised the estimate of the closure costs to be $3.2 million. None of these costs will be incurred until the landfill is scheduled to be closed.Prepare the journal entry that should be recorded on December 31, 2021 for government-wide financial statements.

A local government's basic financial statements would include a statement of cash flows for all

The Town of Sitka opened a solid waste landfill in 2020 that was at 25% capacity on December 31, 2020 and at 60% capacity on December 31, 2021. The city initially anticipated closure costs of $2.8 million but in 2021 revised the estimate of the closure costs to be $3.2 million. None of these costs will be incurred until the landfill is scheduled to be closed.Assuming the landfill is recorded within the General Fund, how would the landfill information be represented in the governmental fund financial statements at December 31, 2021?

A city operates a swimming pool as a proprietary fund because there is a $2 admission fee. In fund financial statements, where is this revenue reported?

A city starts a solid waste landfill during 2020. When the landfill was opened the city estimated that it would fill to capacity within 6 years and that the cost to cover the facility would be $1.8 million which will not be paid until the facility is closed. At the end of 2020, the facility was 15% full, and at the end of 2021 the facility was 35% full.If the landfill is judged to be a governmental fund, what liability is reported on the fund financial statements at the end of 2021?

Jones College, a public institution of higher education, must prepare financial statements

The parking garage and parking lots owned by the City of Barnard reported the following balances for 2021: Required:Prepare the appropriate financial statement for the fund that was used to account for parking operations.