Exam 11: Accounting for State and Local Governments Part 1

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.)

The Town of Lanarte has recorded the receipt of a $75,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2022. The town now spends $75,000 to transport the citizens on Election Day.Required:Prepare the journal entry (or entries)to record that the town spends $75,000 of the grant it received to transport senior citizens on Election Day and identify the fund in which the entry (or entries)is recorded.

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

What account is debited in the general fund when equipment is received by a governmental entity?

Which of the following statements is true regarding governmental fund financial statements?

On June 14, 2021, Carbondale City agreed to transfer cash of $74,000 from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund. The cash was transferred on June 30, 2021.Required:(A)Prepare all the required journal entries and identify the fund in which each entry was recorded for the fund financial statements.(B)Prepare all the required journal entries and identify the type of activity for the government-wide financial statements.

Revenue from property taxes should be recorded in the General Fund

Which of the following is a fiduciary fund?

Which of the following describes proprietary funds?

On August 21, 2021, Carbondale City transferred $150,000 from one fund to another fund to cover major repairs to the town hall building.Required:Prepare all the required journal entries and identify the fund in which each entry was recorded for the governmental fund financial statements.

For what is a special revenue fund used to account?

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

In May of 2022, the Town of Lanarte received a $75,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2022.Required:Prepare the journal entry to record the receipt of the grant and identify the fund in which the entry is recorded.

The term "current financial resources" refers to

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?

Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt?

Which of the following statements is false regarding government-wide financial statements?

The Marshall County legislature voted to set aside $650,000 to have new street signs produced for county roads.Required:For governmental fund financial statements, prepare the journal entry for the adjustment to the fund balance of the general fund.

For determining revenue recognition, eligibility requirements for government-mandated nonexchange transactions and voluntary nonexchange transactions are categorized into four general classifications including all of the following except:

What are the two proprietary fund types?(1)Internal service funds.(2)Investment trust funds.(3)Enterprise funds.(4)Agency funds.