Exam 10: State and Local Governments: Introduction and General Fund Transactions

The general fund has the following transactions for 2020: •Issued $1,000,000 face value bonds with a coupon rate of 3%. •Made a $100,000 principal payment on the bonds. •Made a $25,000 interest payment on the bonds. •Accrued interest due in 2021 on the bonds is $5,000. What is the effect of the above transactions on the general fund's fund balance in 2020?

The December 31, 2020 pre-closing trial balance for the general fund of Chemung County appears below. Debit Credit Cash and cash equivalents \ 11,900 Taxes receivable, net 13,400 Due from other funds 11,300 State and federal aid receivable 13,800 Estimated revenues 155,000 Estimated other financing sources 9,500 Accounts payable \ 10,100 Due to other funds and governments 25,200 Fund balance-unassigned 4,500 Appropriations 160,000 Estimated other financing uses 6,000 Property tax revenues 98,900 Licenses, permits, and fines revenue 14,500 State and federal aid revenue 44,200 Proceeds from sale of capital assets 1,200 Transfers in 200 Bond proceeds 8,000 General government expenditures 53,800 Education and public safety expenditures 18,000 Health and economic assistance expenditures 73,000 Debt principal expenditures 3,500 Debt interest expenditures 1,100 Capital outlay 3,300 Transfers out Total Required a. Prepare the budget entry made at the beginning of 2020. b. Calculate the beginning balance for fund balance: unassigned, before the budget entry. c. Prepare the general fund's statement of revenues, expenditures, and changes in fund balance for 2020. d. Prepare the general fund's balance sheet at December 31, 2020.

The following fund types are used by the State of Florida: General Fund (GF) Internal Service Fund (ISF) Special Revenue Fund (SRF) Private-Purpose Trust Fund (PPTF) Capital Projects Fund (CPF) Pension and Other Employee Benefit Trust Fund (POEBTF) Debt Service Fund (DSF) Investment Trust Fund (ITF) Permanent Fund (PF) Custodial Fund (CF) Enterprise Fund (EF) Required For each of the activities bellow, indicate the state fund type that reports the activity. Use the abbreviations listed above. -Accounts for the operations of the state lottery.

The following fund types are used by Cumberland County: General Fund (GF) Special Revenue Fund (SRF) Capital Projects Fund (CPF) Debt Service Fund (DSF) Internal Service Fund (ISF) Enterprise Fund (EF) Pension Trust Fund (PTF) Custodial Fund (CF) Required For each of the activities bellow, indicate the county fund type that reports the activity. Use the abbreviations listed above. -Accounts for County administrative costs.

A county's general fund has the following results for fiscal 2020: Budget Actual Revenues \ 405,000 \ 400,000 Expenditures 380,000 375,000 Other financing uses 30,000 28,000 If the general fund's balance in fund balance-unassigned before the budget entry was $26,000, what is its balance at the end of fiscal 2020, after closing entries?

The following general fund budget was approved by Plumas County for the current year: Budgeted revenues \ 4,200,000 Budgeted expenditures 3,900,000 Budgeted other finanding sources 200,000 Budgeted other finanding uses 600,000 Plumas County uses the GAAP budgetary basis for outstanding encumbrances. Required During the year, various transactions and events occurred that affected the general fund. For each of the following events, indicate in the space next to each of the names of the listed accounts whether the account should be debited, credited, or is not affected. Property tax bills for the current year are sent out. It is estimated that 10% are uncollectible. -Fund balance-unassigned

Which group is most likely to be a user of a county's financial statements?

Use the following information to answer bellow Questions. On January 1, 2020, a county government sends out property tax bills in the amount of $100,000,000. Of this amount, $15,000,000 is estimated to be uncollectible. During the year, $88,000,000 is collected. Of the $12,000,000 in uncollected taxes at December 31, 2020, $3,000,000 is expected to be collected within the next 60 days, and $1,800,000 is expected to be collected after 60 days. The rest are estimated to be uncollectible. In 2021, $10,000,000 is collected related to 2020 tax bills, and the remaining uncollected 2020 taxes are written off. -How much property tax revenue, related to 2020 tax bills, is reported in 2021?

The following fund types are used by the State of Florida: General Fund (GF) Internal Service Fund (ISF) Special Revenue Fund (SRF) Private-Purpose Trust Fund (PPTF) Capital Projects Fund (CPF) Pension and Other Employee Benefit Trust Fund (POEBTF) Debt Service Fund (DSF) Investment Trust Fund (ITF) Permanent Fund (PF) Custodial Fund (CF) Enterprise Fund (EF) Required For each of the activities bellow, indicate the state fund type that reports the activity. Use the abbreviations listed above. -Accounts for private scholarship funds used to pay scholarships as specified by the contributors. Only interest income from contributions may be used.

The City of Jamesville had the following general fund transactions relating to materials and supplies during 2020: •There were outstanding encumbrances at January 1, 2020 in the amount of $80,000. These items were received and paid at the encumbered amount in 2020. •Materials and supplies ordered during 2020 were received and paid in the amount of $525,000. •Outstanding encumbrances at December 31, 2020 totaled $65,000. •Inventory of materials and supplies at December 31, 2020 was $20,000; inventory of materials and supplies at January 1, 2020 was $22,000. Required Determine the amount of expenditures for materials and supplies that would be reported by Jamesville for 2020 under each of the following accounting policies: Outstanding Encumbrances Inventory A) Legal budgetary basis Purchases met hod B) Legal budg etary basis Consumption method C) GAAP budget ary basis Purchases method D) GAAP budget ary basis Consumption method

The following general fund budget was approved by Plumas County for the current year: Budgeted revenues \ 4,200,000 Budgeted expenditures 3,900,000 Budgeted other finanding sources 200,000 Budgeted other finanding uses 600,000 Plumas County uses the GAAP budgetary basis for outstanding encumbrances. Required During the year, various transactions and events occurred that affected the general fund. For each of the following events, indicate in the space next to each of the names of the listed accounts whether the account should be debited, credited, or is not affected. Property tax bills for the current year are sent out. It is estimated that 10% are uncollectible. -Property tax revenues

A municipality's general fund transmits cash to the debt service fund to finance principal payments on general obligation debt. The debt service fund is not expected to pay the general fund back. How will this transaction be recorded by the general fund and the debt service fund? General Fund Debt Service Fund A) Increase in current receivables Increase in current payables B) Expenditure Revenue C) Other financing use Increase in current payables D) Other financing use Other financing source

The following fund types are used by Callaway County: -General Fund (GF) -Special Revenue Fund (SRF) -Capital Projects Fund (CPF) -Debt Service Fund (DSF) -Permanent Fund (PF) -Enterprise Fund (EF) -Private Purpose Trust Fund (PPTF) -Investment Trust Fund (ITF) -Custodial Fund (CF) Required For each of the transactions bellow, indicate the county fund(s) affected. Be sure to include all funds that report the transaction. Use the abbreviations listed above. -Principal payments on general obligation bonds are made.

The following general fund budget was approved by Plumas County for the current year: Budgeted revenues \ 4,200,000 Budgeted expenditures 3,900,000 Budgeted other finanding sources 200,000 Budgeted other finanding uses 600,000 Plumas County uses the GAAP budgetary basis for outstanding encumbrances. Required During the year, various transactions and events occurred that affected the general fund. For each of the following events, indicate in the space next to each of the names of the listed accounts whether the account should be debited, credited, or is not affected. a. The adopted budget is recorded. -Estimated revenues

The following general fund budget was approved by Plumas County for the current year: Budgeted revenues \ 4,200,000 Budgeted expenditures 3,900,000 Budgeted other finanding sources 200,000 Budgeted other finanding uses 600,000 Plumas County uses the GAAP budgetary basis for outstanding encumbrances. Required During the year, various transactions and events occurred that affected the general fund. For each of the following events, indicate in the space next to each of the names of the listed accounts whether the account should be debited, credited, or is not affected. Closing entries are made at year-end. -Fund balance-assigned

Use the following information to answer bellow Questions bellow is the preclosing trial balance of a town's general fund at year-end: Dr Cr Cash \ 8,000 Property taxes receivable, net 35,000 Estimated revenues 1,000,000 Estimated other financing sources 15,000 Operating expenditures 1,003,000 Accounts payable 40,000 Appropriations 1,005,000 Property tax revenues 989,000 Bond proceeds 15,000 Fund balance-unassigned 12,000 -What was the credit balance in fund balance-unassigned at the beginning of the year, before the budget entry was made?

The following fund types are used by Cumberland County: General Fund (GF) Special Revenue Fund (SRF) Capital Projects Fund (CPF) Debt Service Fund (DSF) Internal Service Fund (ISF) Enterprise Fund (EF) Pension Trust Fund (PTF) Custodial Fund (CF) Required For each of the activities bellow, indicate the county fund type that reports the activity. Use the abbreviations listed above. -Accounts for County payments of general obligation debt principal and interest.

Near the end of 2020, Lewis County's general fund issued purchase orders for merchandise totaling $3,100,000. These purchase orders were still outstanding at year-end. In 2021, the merchandise was delivered, and the county paid the supplier $3,100,000 in cash. The county uses the purchases method to account for merchandise. Required a. Prepare the journal entries necessary to record the above events in 2021, using the legal budgetary basis. Include any beginning-of-year adjusting entries, as well as end-of-year closing entries. b. Repeat the requirements of a., using the GAAP budgetary basis.

The following fund types are used by a county: -General Fund (GF) -Special Revenue Fund (SRF) -Capital Projects Fund (CPF) -Debt Service Fund (DSF) -Permanent Fund (PF) -Enterprise Fund (EF) -Internal Service Fund (ISF) -Custodial Fund (CF) Required For each of the transactions bellow, indicate the fund or funds affected. Be sure to include all funds that report the transaction. Use the abbreviations listed above. -Wages for municipal recreation center employees are paid.

The following fund types are used by a county: -General Fund (GF) -Special Revenue Fund (SRF) -Capital Projects Fund (CPF) -Debt Service Fund (DSF) -Permanent Fund (PF) -Enterprise Fund (EF) -Internal Service Fund (ISF) -Custodial Fund (CF) Required For each of the transactions bellow, indicate the fund or funds affected. Be sure to include all funds that report the transaction. Use the abbreviations listed above. -The county receives an endowment, where the income from the endowment is to be used to maintain public bike paths.