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

On January 1, 2018, Wakefield City purchased office supplies for $40,000.During the year, $35,000 of these supplies were used. Required: Record the journal entries for these transactions using the consumption method.(Disregard the encumbrance entries.)

Property taxes of 1,500,000 are levied for Miner County.All except 5% of the taxes are expected to be collected within 60 days of year-end. Required: Prepare the required journal entry and identify the fund in which it is recorded.

What are the two sets of financial statements mandated by GASB for state and local governments? For each set, what are the names of the individual statements that must be produced?

Holloway City issues bonds in the amount of $700,000 to finance the construction of a sidewalk in a specific neighborhood.Repayment of the bonds will be derived from a special assessment on the owners in the neighborhood.The government accepts legal obligation for the construction of the sidewalk.Total interest on the bonds will total $35,000 and will be repaid at the time of repayment of the bonds. Required: Prepare the journal entries to record each of the following in preparation for (A) the government-wide financial statements and (B) the governmental fund financial statements.For the governmental fund financial statements, include the fund type in which the entry is recorded.Prepare all entries for (A) and all entries for (B) separately. Journal entries to record: 1) Issuance of the bonds 2) Payment to the contractor 3) The special assessment by the city on the neighborhood residents 4) The assessment collection by the city 5) Payment of the debt on the special assessment bonds

Which organization is responsible for establishing accounting principles for governmental entities? By whom was this organization established?

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be recorded in?

When a city holds pension monies for city employees, the monies should be recorded in

For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.

Which of the following is a fiduciary fund?

According to GASB Concepts Statement No.1, what are the three groups of primary users of external state and local governmental financial reports?

Which of the following statements is false regarding government-wide financial statements?

A $5,000,000 bond is issued by Northern City to build a new hospital and the proceeds of the bond are received directly by the fund that will be disbursing the monies for the hospital construction. Required: Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt?

What account is debited in the general fund when equipment is received by a governmental entity?

What is the purpose of government-wide financial statements?

A city received a grant of $5,000,000 from a private agency.The money was to be used to build a new city library.In which fund should the money be recorded for the governmental fund financial statements?

What is the purpose of fund financial statements?

For what is a special revenue fund used to account?

What are the broad classifications of funds for a governmental entity such as a city?

Revenue from property taxes should be recorded in the General Fund