Exam 16: A: Accounting for State and Local Governments, Part I

For each of the following transactions, select the area of accounting records in which an entry will be recorded for governmental fund financial statements and for government-wide financial statements. (A) General fund only. (B) Governmental activities only. (C) General fund and Governmental activities. (D) General fund and Debt service fund. (E) Capital projects fund and Governmental activities. (F) Debt service fund and Governmental activities. (G) Special revenue fund and Governmental activities. ___ (1.) The city council adopts an annual budget for the general fund. ___ (2.) Property taxes are levied. ___ (3.) Computers are ordered for the fire department. ___ (4.) A transfer of funds is made from the general fund to the debt service fund. ___ (5.) The principal and interest of a bond are paid. ___ (6.) A building is acquired for the police department, and renovations begin immediately. ___ (7.) Depreciation on fire trucks is recorded. ___ (8.) Citizens are assessed for a street lighting project that has been legally restricted for those citizens. ___ (9.) A grant is received to landscape tree-lined areas beside city-owned streets. ___ (10.) The city spends grant money received in (9.) above and landscapes the tree-lined areas beside the streets for which the grant money was received.

What are the two proprietary fund types? (1) Internal service funds. (2) Investment trust funds. (3) Enterprise funds. (4) Agency funds.

Government-wide financial statements benefit users by allowing them to do all of the following except:

What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?

Prepare the journal entry and identify the fund to record Simple City's purchase order of two trucks for $100,000.Identify the fund in which the entry is recorded.

For determining revenue recognition, eligibility requirements for government-mandated nonexchange transactions and voluntary nonexchange transactions are categorized into four general classifications including all of the following except:

A city operates a central data processing facility.The expenses of this facility would be accounted for using

The board of commissioners of the city of Jarmaine adopted a General fund budget for the year ending June 30, 2018, which indicated tax levy revenues of $1,300,000, bond proceeds of $520,000, appropriations for government operations of $1,170,000, and operating transfers out of $390,000. Required: If this budget was formally integrated into the accounting records used to produce the governmental fund financial statements, what was the required journal entry at the beginning of the year?

The Trumbull County legislature voted to set aside $500,000 to have new street signs produced for county roads.. Required: For governmental fund financial statements, prepare the journal entry for the adjustment to the fund balance of the general fund.

Proprietary funds are

On June 14, 2018, Fred City agreed to transfer cash of $52,000 from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund.The cash was transferred on June 30, 2018. Required: (A) Prepare all the required journal entries and identify the fund in which each entry was recorded for the fund financial statements. (B) Prepare all the required journal entries and identify the type of activity for the government-wide financial statements.

What assets would be included in the accounting records of a city's general fund?

Bay City received a federal grant to provide health care services to low income mothers and children.When should the revenues be recognized?

Under modified accrual accounting, revenues should be recognized when they are

The reporting of the fund balance of governmental funds will result in a maximum of how many categories:

Which group of government financial statements reports all revenues and all costs as well as all assets and liabilities of the governmental entity?

In May of 2018, the Town of Anthrop receives a $60,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2018. Required: Prepare the journal entry, and identify the fund in which it is recorded, to record the receipt of the grant.

What are the two proprietary fund types?

Governmental funds are

Which type of account would you assign a gift of $1.5 million dollars with restriction indicating that only the future income generated from this balance can be used by the government?