Exam 11: State and Local Governments: Other Transactions

Use the following information to answer questions bellow. Listed bellow are accounts of a state lottery at year-end, as reported in the state's enterprise fund: Dr (Cr) Current assets \ 5,000 Long-term investments 7,000 Long-term prizes payable (6,900) Current liabilities (4,800) Long-term pension liabilities (13) Net position restricted for future prizes (200) Deferred outflows for pensions 12 Deferred inflowsfor pensions (8) -On the lottery's year-end statement of net position, total assets are:

Which statement is true with respect to reporting for compensated absences by state and local governments?

Use the following information to answer Questions Construction activities for Oneida County for 2020 are as follows: 1) A capital projects fund is established for the construction of a recreation center. The total project is estimated to cost $15,000,000, with funding to come from a $9,000,000 general obligation bond issue, a $4,000,000 federal grant, and a $2,000,000 transfer from the general fund. 2) The general fund transfers $2,000,000 to the capital projects fund. 3) $3,500,000 of the federal grant is received in cash. 4) The bond issue with a par value of $9,000,000 yields $9,002,000. The premium is transferred to the debt service fund to finance payment of bond principal and interest. 5) A contract for $14,800,000 is awarded to a contractor. 6) Invoices for $8,000,000 are received for work performed by the contractor. The town has a 5% retainage policy and pays the contractor $7,600,000 in cash. 7) The county's spending policy is to use restricted resources first. The county uses the GAAP budgetary basis for end-of-year encumbrances. -What is the 2020 increase in total fund balances for the capital projects fund?

The State of California reports a transportation special revenue fund whose resources come from federal grants, contributions from private foundations, and taxes set aside by the state budget. Its year-end balance sheet reports total assets of $10,500,000, consisting of $8,500,000 in cash and $2,000,000 in receivables, and total liabilities of $1,300,000. Unspent taxes are $50,000, unspent federal grants are $9,000,000, and unspent contributions from private foundations are $150,000. The fund's balance sheet reports fund balances as follows:

A debt service fund for serial bonds obtains its funding through transfers from the general fund. The debt service fund will most likely report which one of the following classifications of fund balance?

A debt service fund makes a principal payment on general obligation bonds. This payment is reported on the debt service fund's:

Use the following information to answer Questions. During the current year, businesses in a county collect $2,000,000 in sales taxes from customers. These taxes are remitted to the county. Sales taxes are shared between the county, the towns located within the county, and the state, with 60% retained by the county for general use and reported in the general fund, 30% transmitted to the state, and 10% distributed to the towns. By year-end, the county had distributed $580,000 of sales taxes due to the state and $195,000 of sales taxes due to the towns. The county expects to collect the same amount of sales taxes in the following year. -What is the year's change in net position for the custodial fund?

Use the following information to answer Questions. A county installs utility lines to a remote part of the county, financing the project with $10,000,000 in 3.5% bonds. The bond principal will be repaid in ten equal installments over the next ten years. Affected residents will be assessed an equal amount per year over the next ten years to retire the bonds and pay interest on outstanding bonds. The county has no liability for the bonds, and records transactions related to assessment of the residents and payment of the bond principal and interest using a custodial fund. -At the end of the first year, after all assessments are collected and paid to the bondholders, the custodial fund's liabilities will total:

A debt service fund paid $2,000,000 for securities for use as income investments during the year. During the year, $30,000 of investment income is received in cash. At year-end, the fund still holds the securities, and their market value has declined to $1,990,000. How is this reported by the debt service fund?

Use the following information to answer questions bellow. The trial balance of a county's debt service fund at the beginning of the year is provided bellow: Dr (Cr) Cash \ 15,000 Investments 12,000 Fund balance-committed Total \ 0 General obligation debt payments for the year are estimated to be $80,000 for interest and $30,000 for principal. The county budget requires that the general fund transfer $100,000 to the debt service fund during the year. Income on investments is budgeted at $900. The debt service fund uses budget accounts. Transactions for the year are as follows: •The general fund transfers $100,000 to the debt service fund. •The capital projects fund transfers a bond premium on newly issued bonds to the debt service fund, in the amount of $1,000. •The debt service fund invests $35,000 in securities and sells investments with a book value of $40,000 for $40,200. Interest income on securities held during the year is $375, received in cash. The fair value of investments held at year-end is $7,300. •The debt service fund makes the principal and interest payments as budgeted. -Investments, reported in the debt service fund's year-end balance sheet, are:

Use the following information to answer Questions Construction activities for Oneida County for 2020 are as follows: 1) A capital projects fund is established for the construction of a recreation center. The total project is estimated to cost $15,000,000, with funding to come from a $9,000,000 general obligation bond issue, a $4,000,000 federal grant, and a $2,000,000 transfer from the general fund. 2) The general fund transfers $2,000,000 to the capital projects fund. 3) $3,500,000 of the federal grant is received in cash. 4) The bond issue with a par value of $9,000,000 yields $9,002,000. The premium is transferred to the debt service fund to finance payment of bond principal and interest. 5) A contract for $14,800,000 is awarded to a contractor. 6) Invoices for $8,000,000 are received for work performed by the contractor. The town has a 5% retainage policy and pays the contractor $7,600,000 in cash. 7) The county's spending policy is to use restricted resources first. The county uses the GAAP budgetary basis for end-of-year encumbrances. -What is the cash balance for the capital projects fund at the 2020 year-end?

Unclaimed property held by a state is reported in a(n)

In 2020, a county receives a $5,000,000 endowment from a private citizen for community programs and reports it in a permanent fund. During 2020 the county invests the $5,000,000, earning $50,000 in investment income. It spends $35,000 for approved programs. At the end of 2017, how is fund balance for this permanent fund reported?

The following events occurred in the highway capital projects fund for the State of Montana during the past year: 1) A highway improvement project was authorized, at an expected cost of $35,000,000. This project is expected to last two years. Budgetary accounts are recorded directly on the books of the capital projects fund. Bonds of $25,000,000 were authorized to help finance the project, and the remaining funds were budgeted to come from general fund resources. 2) Bonds of $25,000,000 were issued in the first year at par, and the general fund transferred $10,000,000 to the capital projects fund. 3) Winning bids were accepted from contractors in the amount of $33,800,000. 4) First year expenditures on the project were $20,000,000. $19,900,000 in cash was paid. The State's spending policy is to use restricted resources first, and then committed resources. Required a. Prepare entries to record the year's events, including budget, adjusting and closing entries. b. Prepare the highway capital projects fund operating statement for the year, and the end of year balance sheet.

A county special revenue fund for special needs children is financed in its entirety by taxes set aside by the county budget for this purpose. The fund balance of the special revenue fund will be classified as:

A $25 million contract is awarded by a county for construction of a building. Bonds are issued to finance construction, in the amount of $25 million. During the first year, $6 million is paid in cash to contractors for work done. At year-end, the capital projects fund reports the following fund balances:

Which statement is false concerning the proprietary fund statement of cash flows?

A city has a special revenue fund that reports cash of $100,000, inventories of $25,000, and accounts payable of $60,000. The resources for the fund are provided by a county grant. How is fund balance reported for the special revenue fund?

Some transactions of a local government appear below: a. Bond proceeds of $4,010,000 were received by the capital projects fund with a par value of $4,000,000. The premium of $10,000 was immediately transferred to the debt service fund for eventual payment of the principal on the general obligation bonds. b. Equipment of $2,500,000 was purchased by a city water utility. c. The debt service fund makes the following payments on general obligation serial bonds: $500,000 in interest, and $1,000,000 in principal. d. $2,500,000 in collections are expected to be received from property owners to pay principal and interest on debt incurred in a capital improvement assessment project, where the obligation for the special assessment debt issued is the responsibility of the affected property owners. The assessment is collected from property owners and paid out to the debtholders. Required Make the entries necessary to record each transaction. Specify the fund(s) affected in each case.

Use the following information to answer Questions. A county installs utility lines to a remote part of the county, financing the project with $10,000,000 in 3.5% bonds. The bond principal will be repaid in ten equal installments over the next ten years. Affected residents will be assessed an equal amount per year over the next ten years to retire the bonds and pay interest on outstanding bonds. The county has no liability for the bonds, and records transactions related to assessment of the residents and payment of the bond principal and interest using a custodial fund. -When the custodial fund pays assessments to the bondholders, which account is debited?