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

Use the following to answer the next five questions: On October 1, 2011, the City of Mizner issued $3,500,000 in 5%, general obligation bonds at 102 for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $3,450,000 was used to construct the addition, which was completed prior to June 30, 2012. The remaining funds were transferred to the debt service fund. The bonds were dated October 1, 2011, and paid interest on April 1 and October 1. The first of 20 annual principal payments of $175,000 is due October 1, 2012. The fiscal year for Mizner is July 1- June 30. -In addition to a capital asset in the government-wide Statement of Net Assets,how would the construction costs of $3,450,000 be reported at year-end?

Use the following to answer the next five questions: On October 1, 2011, the City of Mizner issued $3,500,000 in 5%, general obligation bonds at 102 for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $3,450,000 was used to construct the addition, which was completed prior to June 30, 2012. The remaining funds were transferred to the debt service fund. The bonds were dated October 1, 2011, and paid interest on April 1 and October 1. The first of 20 annual principal payments of $175,000 is due October 1, 2012. The fiscal year for Mizner is July 1- June 30. -In addition to a $3,500,000 liability in the government-wide Statement of Net Assets,how would the bond sale be reported?

Which entry would be recorded in the Debt Service Fund?

Major sources of funding for capital project funds include:

Proceeds of tax supported bonds are recognized in a capital projects fund as a(an):

All of the governmental funds use the modified accrual basis of accounting.

When taxes and/or special assessments are levied specifically for payment of interest and principal on long-term debt,those taxes are recognized:

What is the difference between Permanent Funds and Private Purpose Trust Funds?

Capital project funds record the proceeds of debt issued as:

Which of the following statements is false?

Special assessments are levied to finance long-term construction projects that benefit the general population.

Which of the following is true with respect to special assessment levies?

Which of the following is not true regarding permanent funds?

Which of the following is true regarding capital projects funds?

Unexpended intergovernmental grants and taxes dedicated to capital improvements in a capital projects fund are likely to be classified as Restricted Fund Balance.

The current and long-term portions of General Long-term Debt are normally reported in a debt service fund.

Which is one of the criteria that needs to exist in order for "other governmental funds" to be considered major?

General fixed assets that are acquired with governmental fund resources are recorded in the:

Which of the following statements regarding serial bonds is false?

Special Projects Fund is a fund type that is used to account for revenues and other financing sources that are intended to service debt.