Exam 21: Accounting for State and Local Governmental Units - Proprietary and Fiduciary Funds

On January 1,2011,the Enterprise Fund for a local city receives an operating grant of $100,000 cash from the state government.Upon receipt of the cash,qualifying expenses of $200,000 for the operating grant have been incurred.What journal entry did the Enterprise Fund prepare on January 1,2011?

The trust fund for a school library is required to prepare financial statements that include

Interest payments on loans outstanding that do not relate to acquiring,constructing or improving capital assets are classified as ________ on the cash flow statement for an Enterprise Fund.

Proprietary funds are required to prepare financial statements that include: a)Statement of Activities b)Statement of Revenues,Expenditures and Changes in Fund Balance c)Balance Sheet d)Statement of Cash Flows e)Statement of Net Assets f)Statement of Revenues,Expenses and Changes in Net Assets

Jefferson County had the following transactions in 2012. 1.$27,000 in membership fees was collected at the municipal pool. 2.A county collects $130,000 in sales taxes on behalf of the cities within its boundaries. 3.A $500,000 bond offering was issued at 102 to fund the construction of a new city hall.The premium on the bonds was transferred to the Debt Service Fund(nonreciprocal). 4.A private foundation contributes a stock portfolio with a fair value of $100,000 to the county.A trust agreement specifies the earnings on the fund is to be used by the local park which is owned and operated by a private foundation,and the principal is to be held intact indefinitely. 5.The county sends bills out for water and sewer provided to residents,amounting to $340,000. Required: Prepare the necessary journal entries for each of the above transactions for all funds affected.Be sure to identify the fund type for each entry.

The four cash flow categories required in an Enterprise Fund's Statement of Cash Flows are listed below and assigned a letter code. A)Cash flows from operating activities B)Cash flows from noncapital financing activities C)Cash flows from capital and related financing activities D)Cash flows from investing activities Required: Use the correct letter code to indicate where each of the following ten items associated with an Enterprise Fund should be reported in the Statement of Cash Flows. 1.An enterprise fund's fixed asset was sold for cash. 2.Cash paid to suppliers for goods. 3.Paid principal,$100,000,and interest,$5,000,on a mortgage. 4.Cash proceeds from sale of investments,$65,000. 5.Cash paid for new equipment,$18,000. 6.Cash received from the general fund;restricted to cover part of the cost of plant expansion,$900,000. 7.Cash received from another fund as a 6-month loan for the sole purpose of financing purchase of equipment,$47,000. 8.Cash proceeds from issuing bonds for an enterprise fund's construction project. 9.Cash paid to employees for salaries. 10.Cash received from interest earned on investments.

On the Statement of Net Assets,in place of stockholders' equity,proprietary funds report

Prepare journal entries in an Internal Service Fund of Union County to record each of the following transactions. 1.Purchased equipment on September 1,2011 by paying $25,000 down and borrowing $100,000 on a 6%,2-year note. 2.In 2011,billed General Fund $620,000 for services provided.Billings to the Enterprise Fund totaled $165,000.All billings were collected by December 31,2011 except for $100,000 charged to the General Fund. 3.Accrued year-end adjustments at December 31,2011 for interest expense and depreciation.The useful life of the equipment is 5 years with no salvage value.

Prepare journal entries in the motor pool department of Hill County to record each of the following transactions. 1.The General Fund contributed $50,000 cash to the motor pool department.The motor pool department purchased four vehicles on July 1,2011 by paying $50,000 down and borrowing $70,000 on a 5%,3-year note. 2.Billed General Fund departments $430,000 for services provided to those departments.Billings to the Enterprise Fund totaled $210,000.All billings were collected by year-end(June 30,2012)except for $80,000 charged to the General Fund. 3.Accrued year-end adjustments at June 30,2012 for interest expense and depreciation.The useful life of the equipment is 5 years with no salvage value.

Thoroughgood County has a municipal golf course and tennis club which is funded by the membership fees it charges.The club also has 6% bonds outstanding amounting to $20,000,000 on which it pays interest semi-annually.The club had the following transactions. 1.An addition to the golf clubhouse was added for $2,000,000,funded out of operations. 2.The following expenses were incurred and paid: $80,000 wages;$10,000 payroll taxes;$45,000 water bill;and $12,000 equipment repair. 3.Interest on the bonds was paid amounting to $600,000. 4.$5,000,000 of operating cash excess was repaid to the general fund for a previous loan. 5.Depreciation of $500,000 was recorded for the buildings. Required: Prepare the necessary journal entries for each of the above transactions for the Enterprise Fund.

Based upon the cash flow information provided below for the year ended December 31,2011,prepare a cash flow statement for the Bloomfield Municipal Golf Course,an enterprise fund.

Prepare journal entries to record the following grant-related transactions of the municipal swimming pool,which is funded primarily by membership fees. 1.Received an operating grant in cash from the state for $200,000,to be used for life-saving and first-aid training. 2.Incurred and paid qualifying expenses on the state grant program by providing training,$165,000. 3.Received a federal grant to finance purchase of an energy efficient heating system for the pool,$120,000 (cash received in advance). 4.New heating system installed and paid,$115,000.

The financial statements of proprietary funds are similar to business enterprises with the exception that proprietary funds do not

An enterprise fund collects $100,000 cash for customer deposits to insure timely payment for services.What journal entry did the enterprise fund prepare?

Platinum City collects state sales taxes quarterly from local businesses and then gives the state revenue department the money at the end of the year.The sales taxes would go in Platinum City's

At December 31,2011,an Enterprise Fund has the following adjusted accounts outstanding: When preparing the closing entry for the temporary accounts at December 31,2011,the Enterprise Fund's accountant will

What is a significant difference for agency funds when compared to governmental funds?

Proceeds from bonds issued for the construction of capital assets are classified on the Statement of Cash Flows for an Enterprise Fund as

On January 1,2011,the General Fund contributes $200,000 cash to the Internal Service Fund.On January 1,2011,the General Fund also loans $100,000 cash to the Internal Service Fund.On January 1,2011,what journal entry does the Internal Service Fund prepare?