Exam 4: An Introduction to General and Special Revenue Funds

Closing entries for the General Fund and Special Revenue Funds include closing the budgetary accounts against each other and closing the nominal financial accounts to fund balance.

Use the preclosing trial balance prepared for Problem 1, above, regarding Winter County, to close the accounts for the year ended December 31, 2020.

Which of the following best describes accrued liabilities of the General and Special Revenue Funds?

Grant proceeds that are restricted for spending on salaries of public health workers who educate citizens about the dangers of diabetes would most likely be accounted for in a:

Use the information in Problem 1, above, regarding Winter County, to prepare (a) a balance sheet, (b) a statement of revenues, expenditures, and changes in fund balance, and (c) a budgetary comparison schedule, for the year ended December 31, 2020. Report the ending fund balance as restricted.

Use the adjusted trial balance shown in Problem 4, above, regarding the Township of Whitt, to close the accounts for the year ended June 30, 2020.

Which of the following statements regarding budgetary fund balance is accurate?

Which line item would not be appropriate in the closing entry of a General Fund or a Special Revenue Fund?

Major sections of the statement of revenues, expenditures, and changes in fund balance include revenues, expenditures, and other financing sources and uses.

A city invests $500,000 of its idle General Fund cash in a certificate of deposit (CD) on August 1, 2019. The CD pays interest of 1 percent per annum and matures on January 31, 2020. When it closes its books on December 31, 2019, how much interest receivable should the city accrue?

At the end of its fiscal year, the City of Lancaster owes public safety workers $18,000 and general government employees $12,000 for work performed related to General Fund activities prior to its December 31^st fiscal year end. The employees are not paid until January 10^th of the following year. What journal entry, if any, should the City of Lancaster make to record this transaction in its General Fund on December 31^st? a. Salaries expense-public safety 18,000 Salaries expense-general government 12,000 Accrued salaries payable 30,000 b. Encumbrances--salaries 30,000 Budgetary fund balance reserved for encumbrances 20,000 c. Expenditures-public safety salaries 18,000 Expenditures-general government salaries 12,000 Accrued salaries navable 30,000 d. No entry is required because this transaction relates to an activity accounted for in the General Fund.

The city council passed a budget for its only Special Revenue Fund. The budget included estimated revenues of $400,000 and appropriations of $380,000. What journal entry should be made to record the city's budget for its Special Revenue Fund? a. Appropriations 380,000 Budgetary fund balance 20,000 Estimated revenues 400,000 b. Estimated revenues 400,000 Appropriations 380,000 Budgetary fund balance 20,000 c. Appropriations 380,000 Unassigned fund balance 20,000 Estimated revenues 400,000 d. Estimated revenues 400,000 Appropriations 380,000 Unassigned fund balance 20,000