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

If a trust is to be used for the benefit individuals,private organizations or other governments,the following fund(s)should be used:

Debt service funds may accrue interest and report principle payments due if the payments are due within 30 days after year end.

Budgets are typically not recorded for Capital Projects Funds.

If the amount of annual principal repayment is scheduled to increase each year by approximately the same amount that interest payments decrease,this type of bond would be what kind of serial bond?

Where should a government report special assessment debt that the government is not liable for in any way?

What amount would be reflected in the government-wide financial statements as a liability for capital leases as of December 31,2012?

If bonds issued to fund a capital project are sold at a premium,the additional money received is:

A debt service fund:

Encumbrance accounting is only typically used for

In 2012,the Town of Alfred issued $2,000,000 of 8% tax supported bonds.The bonds are dated January 1,2012 with interest payment dates of June 30 and December 31.The first of 10 annual principal payments is due on December 31,2012.The bonds were sold at a $16,000 discount.Cash sufficient to fully fund interest and principal payments for the year is transferred from the General Fund on June 1st. Required: Record any and all entries to be made by the Debt Service Fund for the bond issued for the year 2012 (including closing entries)

Capital Projects,debt service and permanent funds do not typically record budgets.

Capital outlay expenditures of capital projects funds will result in additions to the general fixed assets reported in the government-wide Statement of Net Assets.

Which of the following projects would normally be accounted for in a capital projects fund?

When a governmental unit is primarily or secondarily liable for the debt,debt proceeds for special assessments levied for the construction phase of a capital improvement project should be reported in which of the following fund types?

The fund balance of permanent funds should be classified as Nonspendable,Spendable and Committed.

What amount would be reported as debt service expenditures for 2013?

Debt service funds are used to account for the payment of principal and interest of both general and enterprise related long-term debt of a state or local governmental unit.

Fixed assets of completed projects are recorded in the accounts of capital projects funds.

Use the following to answer the next three questions: A government entered into a capital lease agreement to acquire equipment for the general government on January 1, 2012. Five payments of $8,000 each are to be made, beginning on December 31, 2012. Discounting is at 6%, computed annually. The present value of the five payments is $33,699. -Which of the following would be true as of January 1,2012?

The portion of a permanent fund which is spendable should be reported as Unassigned Fund Balance.