Exam 8: Government-Wide Statements, capital Assets, long-Term Debt

A government incurred expenditures for its infrastructure as follows: $20 million for general repairs; $21 million to extend the life of existing infrastructure; $22 million for improvements and additions.If depreciation is to be charged,the amount would be $23 million.Which of the following would be true?

A local government issued bonds and recorded the event by debiting cash and crediting Other Financing Source - Proceeds of Bonds and Other Financing Source - Premium on Bonds.What is the worksheet entry when preparing the government-wide statements?

Which of the following is true regarding the government-wide Statement of Net Assets?

GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting.

Internal Service funds use the accrual basis of accounting.

When using the modified approach to account for infrastructures,expenditures to extend the life of the infrastructure assets are capitalized.

Fixed assets acquired through proprietary funds are reported in the Statement of Net Assets of those funds.

A government's Statement of Revenues,Expenditures,and Changes in Fund Balances reported proceeds of bonds in the amount of $500,000.It also reported expenditures for bond principal in the amount of $1,000,000.The last interest payment was on the last day of the fiscal year.The reconciliation from the governmental funds changes in fund balances to the governmental activities change in net assets would reflect a(an):

Balances from enterprise fund statements,Statement of Net Assets and Statement of Revenues,Expenses,and Changes in Fund Net Assets,are reported in the business-type activities sections of government-wide statements.

With the inception of GASB Statement 34,governments have the option to capitalize infrastructure assets.

Use the following to answer the next two questions: The City of Kale levied property taxes in the amount of $10,000,000 for the fiscal year ended December 31, 2012. It is estimated that 3% will not be collected. During the year ended December 31, 2012, $8,900,000 in property taxes were collected. It is estimated that $500,000 would be collected during the next 60 days, $200,000 would be collected during the remainder of 2013, $100,000 would be collected in 2014, and $300,000 would not be collected. Kale has a policy of recognizing the maximum possible in property taxes. -What amount would be reported in the government-wide Statement of Activities for the year ended December 31,2012? (ignore the effect of collection of any taxes levied prior to 2012)

When converting from fund basis reporting to government-wide reporting,which of the following would require an adjustment?

When converting fund financial records to government-wide financial statements,worksheet entries are made to eliminate all of the following accounts expect:

GASB requires that all infrastructure be capitalized and depreciated.

In preparing the government-wide financial statements,worksheet entries are not posted to the general ledger.Therefore,new worksheet entries for existing fixed assets must be made each year.

When preparing the government-wide statements,a worksheet entry is required to record depreciation expense on general capital assets.

When converting from fund financial statements to government-wide statements,it is necessary to eliminate transfers that are between the categories of governmental activities and business-type activities.

In its Statement of Net Assets,a government reported: The government also reported $10 million of net assets were restricted for payment of debt service.The government's unrestricted net assets would be reported as:

When preparing the General Fund financial statements,how much property tax revenue should be recognized for the year ended June 30,2012?

The City of Madison,a general purpose government,reported fund balances in the amount of $24,300,000 in the governmental funds balance sheet dated December 31,2012.In addition,the following information is relevant: A.General government fixed assets amounted to $37,000,000.Accumulated depreciation of those fixed assets amounted to $18,000,000. B.General long-term liabilities of the government amounted to $6,000,000. C.Property taxes,which should be recognized as receivables in the government-wide statements,amounted to $3,000,000.Property taxes recognized as receivables in the governmental funds balance sheet amounted to $2,000,000; the remainder had been deferred,in accord with modified accrual accounting D.Internal service funds net assets amounted to $6,000,000.These were reported in the proprietary funds balance sheet. E.Liabilities,in addition to the amount reported in the governmental funds balance sheet included: (1)accrued interest payable,$300,000; (2)compensated absences payable,$4,500,000. Required: Prepare a reconciliation from the fund balances recognized in the governmental funds balance sheet to the net assets recognized in the governmental funds column of the government-wide statement of net assets.