Exam 17: A: Accounting for State and Local Governments, Part II

All of the following about tax abatement agreements must be disclosed by state and local governments except:

The City of Nextville operates a motor pool serving all city-owned vehicles.The motor pool bought a new garage by paying $29,000 in cash and signing a note with the local bank for $280,000.Subsequently, the motor pool performed work for the police department at a cost of $17,000, which had not yet been collected.Depreciation on the garage amounted to $20,000.The first $12,000 payment made on the note included $4,800 in interest. Required: Prepare the journal entries for these transactions that are necessary to prepare government-wide financial statements.

Which criteria must be met to be considered a special purpose government? (1.) Have a separately elected governing body (2)) Be legally independent (3)) Be fiscally independent

What are the three broad sections of a state or local government's CAFR?

The City of Kamen maintains a collection of paintings of a former citizen in its City Hall building. During the year, one painting was purchased by the city for $2,000 at an auction using appropriated funds in the General Fund. Also during the year, a donation of a painting valued at $3,000 was made to the city. -Prepare the journal entry/entries for the two transactions for the purposes of preparing the governmental fund financial statements.

A local government's basic financial statements would include a statement of cash flows for all

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance. The following information relates to the activities within the Town of Portsmouth for the year of 2018. -Prepare a Statement of Net Position at December 31, 2018.

Which information must be disclosed regarding tax abatement agreements? i) The purpose of the tax abatement program. ii. The dollar amount of abatement and the names of recipients. iii. The type of tax being abated.

Which of the following is a financial statement of a proprietary fund?

The City of Kamen maintains a collection of paintings of a former citizen in its City Hall building. During the year, one painting was purchased by the city for $2,000 at an auction using appropriated funds in the General Fund. Also during the year, a donation of a painting valued at $3,000 was made to the city. -Prepare the journal entry/entries for the two transactions for the purposes of preparing the government-wide financial statements.

What is meant by the term legally independent?

The Town of Wakefield opened a solid waste landfill in 2017 that was at 20% capacity on December 31, 2017 and at 50% capacity on December 31, 2018. The city initially anticipated closure costs of $2.3 million but in 2018 revised the estimate of the closure costs to be $2.7 million. None of these costs will be incurred until the landfill is scheduled to be closed. -Assuming the landfill is recorded within the General fund, how would the landfill information be represented in the governmental fund financial statements at December 31, 2018?

Which of the following is true regarding Management's Discussion and Analysis (MD&A)?

The parking garage and parking lots owned by the City of Danton reported the following balances for 2018: Required: Prepare the appropriate financial statement for the fund that was used to account for parking operations.

Which one of the following is a criterion for identifying a primary government?

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance. The following information relates to the activities within the Town of Portsmouth for the year of 2018. -Prepare a Statement of Activities for the year ended December 31, 2018.

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance. The following information relates to the activities within the Town of Portsmouth for the year of 2018. -Prepare a Statement of Revenues, Expenditures and Other Changes in Fund Balances for the year ended December 31, 2018.

Which statement is false regarding the Balance Sheet for Governmental Fund Financial Statements?

A city starts a solid waste landfill during 2017. When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed. At the end of 2017, the facility was 20% full, and at the end of 2018 the facility was 45% full. -If the landfill is judged to be a governmental fund, what liability is reported on the fund financial statements at the end of 2018?

What are the three broad sections of a state or local government's CAFR?