Exam 4: Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

On May 1,Vacca City was notified of approval of a $300,000 federal operating grant,payable on a reimbursement basis as the city expends resources for the intended purpose of the grant.As of May 1,no expenditures had been made for grant purposes.The journal entry to record approval of this grant will include

If the actual liability for goods or services ordered in the current year differs from the estimated liability,the Encumbrances account should be credited in the amount of the estimated liability when the goods or services were ordered.

Which of the following items would properly be reported on the year-end balance sheet of the General Fund?

Which of the following would properly be reported in the operating statement of a governmental fund?

Interfund loans and amounts due to or from other funds should be eliminated from the accounts of the affected funds so that the annual financial statements of the government will show only receivables from and payables to external individuals or organizations.

The City of Tipton received 100 acres of land located in the city limits as a gift from a local property owner for use as a city park.The debit for the entry to record this event in the General Fund should be to

The City of Newton purchased a vehicle for the police department.If the operations of the police department are financed by general revenues,the purchase would be recorded in which funds and/or activities?

The fund balance of the General Fund will be increased by the closing entry when

Although a governmentally owned utility may receive police and fire protection and other services from governmental departments financed by "governmental" funds,such a utility is exempt from taxes and should not pay the General Fund anything for services received.

A government that uses the encumbrance method for purchases of goods and services is not required to use encumbrance accounting for its payrolls.

When a fire truck purchased from General Fund revenues is received,what account,if any,should have been credited in the General Fund?

As a general rule,revenues,expenditures,and expenses should be reported as such only once in the funds of a government.

The General Fund recorded a liability to the city-owned electric utility (an enterprise fund of the city)for electricity used during the prior month.The journal entry for the General Fund will include

How many general funds may a government have?

Proceeds from general obligation bonds for capital construction should generally be recorded in the

If property taxes are not collected by the date specified by law,additional revenue is generally earned by the fund of the government for which the taxes were levied.

Which of the following is properly reported as an other financing source by the General Fund?

Under the dual-track accounting approach used in the text,which of the following transactions or events would be recorded in the general journal for governmental activities at the government-wide level?

Assuming all legal requirements have been met,the revenues budget total should be debited to the Estimated Revenues control account; the appropriations budget total should be credited to Appropriations and the difference should be debited or credited to Budgetary Fund Balance.

The following is a pre-closing trial balance for Sun City's General Fund as of June 30,2011: What is the fund balance as of June 30,2011,after all closing entries have been made? Show your work.