Exam 16: Accounting for State and Local Governments, Part I

Which statement is not correct?

A city operates a central data processing facility. The expenses of this facility would be accounted for using

When a city received a county grant designated for providing food and other assistance to the homeless, the money should have been recorded in

For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.

Which of the following is a governmental fund?

The City of Grisham collected $19,000 from parking meters that must be transferred to the county government in the next thirty days.Required:For fund financial statements, prepare the journal entry for the collection of the $19,000 from parking meters, including the fund type in which the entry would have been recorded.

What are monetary transfers and how are they reported?

What is the definition of the term fund?

Which type of account would you assign a gift of $1.5 million dollars with restriction indicating that only the future income generated from this balance can be used by the government?

A county enacted a special tax levy and the money must be used to buy unused farmland for environmental preservation. What kind of fund should be used to record the revenues generated by the tax?

What are the five types of governmental funds?

What is the purpose of fund financial statements?

Bassett City issues bonds in the amount of $750,000 to finance the construction of a sidewalk in a specific neighborhood. Repayment of the bonds will be derived from a special assessment on the owners in the neighborhood. The government accepts legal obligation for the construction of the sidewalk. Total interest on the bonds will total $37,500 and will be repaid at the time of repayment of the bonds.Required:Prepare the journal entries to record each of the items below in preparation for (A) the government-wide financial statements and (B) the governmental fund financial statements. For the governmental fund financial statements, include the fund type in which the entry is recorded. Prepare all entries for (A) and all entries for (B) separately.Journal entries to record:1) Issuance of the bonds.2) Payment to the contractor.3) The special assessment by the city on the neighborhood residents.4) The assessment collection by the city.5) Payment of the debt on the special assessment bonds.

Which of the following would be considered a derived tax revenue?

Which of the following describes proprietary funds?

Which of the following funds is most likely created with an endowed gift?

On July 1, 2021, Carbondale City ordered $1,800 of office supplies. They were to be paid for out of the general fund.Required:(A) What journal entry was required for the governmental fund financial statements?(B) What journal entry was required for the government-wide financial statements?

On January 1, 2021, Kenneth City purchased office supplies for $50,000. During the year, $42,000 of these supplies were used.Required:Record the journal entries for these transactions using the purchases method. (Disregard the encumbrance entries.)

Palmer City has recorded the purchase order of two trucks for a total of $150,000.Prepare the journal entries to reflect that the two trucks have been received with an invoice amount of $160,000. This invoice has been approved but not yet paid. Identify the fund in which the entries are recorded.

Which group of government financial statements reports all revenues and all costs as well as all assets and liabilities of the governmental entity?