Exam 4: Accounting for the General and Special Revenue Funds

General Fund resources were expended in the amount of $180,000 to purchase a new fire truck.The General Fund would debit:

When the materials and supplies are received and the invoice is more than the related purchase order,this entry should be made:

Special revenue funds are used when it is desirable to provide separate reporting of resources that are assigned to expenditure for purposes other than debt service or capital projects.

Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2012.Use modified accrual accounting. (a)The legal budget for the year provided for $5,040,000 of estimated revenues and $4,960,000 appropriations. (b)Assume there are $200,000 of purchase orders outstanding at the end of last year and that these will be honored in the current year.Prepare the entries to re-establish the encumbrance. (c)Property taxes were levied in the amount of $3,300,000.It is estimated that 2 percent of the taxes will never be collected. (d)Purchase orders were issued for equipment and supplies in the amount of $3,040,000. (e)Supplies,relating to all of the prior year purchase orders ($200,000),were received along with invoices amounting to $197,000. (f)Collections of current property taxes amounted to $2,950,000.The uncollected taxes recorded as delinquent. (g)It was estimated that $190,000 in property taxes would be collected in the first 60 days of 2013 and that $180,000 would be collected in later periods.

The city of Canandaigua receives proceeds from the sale of land,the transaction is considered to be a special item.The proceeds are:

The following items were included in the City of Wilson's General Fund expenditures for the year ended June 30,2012: How much should be classified as capital assets in Wilson's General Fund balance sheet at June 30,2012?

When establishing funds,governments should attempt to minimize the number of special revenue and other funds,instead using functional classification to record transaction detail.

What is the difference between an extraordinary and special item?

Center City's General Fund has the following net resources at year end: Required: Prepare the fund balance section of the Balance Sheet.

Which of the following is not true with respect to Special revenue funds?

Interfund transactions are of particular interest to financial statement preparers and users since failure to properly report these transactions will result in two funds being misstated.

The entry to re-establish encumbrances related to purchase orders from the prior year would include:

The City of Stromfield had the following partial list of preclosing account balances in its General Fund as of June 30,2012. Required: Prepare,in good form,a Statement of Revenues,Expenditures,and Changes in Fund Balances for the General Fund for the year ended June 30,2012.

GASB requires which of the following to be reported separately after other financing sources and uses in the Statement of Revenues,Expenditures,and Changes in Fund Balance?

What is a Special Revenue Fund?

A special item is a significant transaction that is unusual and infrequent,but within the control of management.

Government fund statements use the modified accrual basis,while government-wide,proprietary fund and fiduciary funds use accrual basis.

Interfund services provided and used are recognized directly as Transfers In and Transfers Out.

In the General Fund,revenues are recognized when measurable and available.

Receivables from sales taxes are recorded when the taxpayer's underlying transaction takes place.