Exam 5: Accounting for Other Governmental Fund Types: Capital Projects, debt Service, and Permanent

What is a major source of funding for capital projects funds?

If taxes and/or special assessments are levied specifically for payment of interest and principal on long-term debt,those taxes are recognized as revenues of the debt service fund.

Major sources of funding for Capital Project Funds include the issuance of long term debt and grants from other governmental units.

When using debt service accounting,long term interest is not to be accrued unless the payment is due in no more than one month and the government has resources available for payment.

What would be the amount of expenditures recorded by the debt service fund for the fiscal year ended December 31,2013?

Interest revenues accrued at year-end on investments held by a permanent fund.

If taxes and/or special assessments are levied by the General Fund,and then are subsequently transferred to the debt service fund,they are:

With respect to Debt Service Funds,which of the following is not correct?

If a government issues new debt,and places the proceeds in an escrow account pending the maturity date of existing debt,the existing debt is said to be defeased.

Budgets are typically recorded for which of the following:

When a purchase order is issued under a Capital Projects fund,how should the transaction be recorded?

Capital project funds only exist for the duration of the project for which it is created.

Which of the following is false with respect to long-term debt?

When a capital project has been constructed entirely with bond proceeds and funds are left over at the end of the project,which of the following would normally take place?

Which of the following statements is true?

On 9/1/09 Birmingham County sold bonds at par value in the amount of $10,000,000 to finance construction of a new library.On 10/10/09 Hills County entered into a contract with a private contractor to build a new library building in the amount of $10,000,000.On 12/1/09,when the contract was half finished,the contractor submitted a bill for $5,000,000.The bill was paid on 12/15/09 less Hills' standard 5% retention to assure any construction deficiencies are corrected.Hills County operates on a Dec.31 fiscal year. Required: Prepare the journal entries required in the Capital Projects Fund for the above transactions

A government signed a five-year capital lease on January 1,2012 to obtain some equipment.The lease provided that the government would make a down payment of $10,000 and four $10,000 payments each year after that,beginning January 1,2012.The government has a fiscal year ending December 31.Upon inception of the lease,the government,in its governmental fund accounting records would:

Permanent funds account for resources that are donor restricted to the extent earnings (but not principal)may be used to support government programs.

Governmental funds,other than the General Fund,are considered major if: I.Total Assets,Liabilities,Revenues,or Expenditures of that individual governmental fund are at least 10% of the corresponding total (assets,liabilities,and so forth)for all governmental funds. II.Total Assets,Liabilities,Revenues,or Expenditures of the individual governmental fund are at least 5% of the corresponding total for all governmental and enterprise funds combined.

Capital project funds