Exam 20: Accounting for State and Local Governmental Units - Governmental Funds

Which statement below is incorrect with respect to the Government-wide financial statements?

Taxes which were billed,but are not paid by the due date,require which of the following entries at the fiscal close?

The General Fund transfers $50,000 cash to the Debt Service Fund to meet annual interest payments.What entry did the Debt Service Fund prepare?

Use the following information to answer the question(s)below. The town of Mayberry receives a gift of $500,000 in bonds.The contributor instructs that the principal should remain intact,but the annual interest income of $50,000 can be used for the maintenance of the zoo animals. -When the donation of bonds is received,what account should be debited?

Assume you are preparing journal entries for the General Fund under the consumption method.What account should be debited when office supplies are ordered?

Middlefield County incurred the following transactions during 2014: 1.The county authorized a new general obligation bond issue of $5 million par to construct an office building with a contract price of $4,975,000.The bonds were issued for $4,980,000. 2.The county levied real property taxes of $10,000,000.Eighty-five percent of the net taxes were collected immediately.Two percent of the total levy was estimated to be uncollectible. 3.The office building was completed and the county paid the contract price to the contractor. 4.The General Fund transferred $500,000 to the Debt Service Fund. 5.The county paid $200,000 for interest on the bonds from the Debt Service Fund. Required: Prepare journal entries for each of the above transactions.Identify the appropriate fund or funds used by Middlefield County.

The unadjusted trial balance for the general fund of the City of Jordan at June 30,2014 is as follows: Supplies on hand at June 30,2014 totaled $17,000.The $18,000 encumbrance relates to equipment ordered but not received by fiscal year-end. Required: Prepare a balance sheet for the general fund of the City of Jordan at June 30,2014.

What statements are required for Government-wide financial statements?

Use the following information to answer the question(s)below. The town of Mayberry receives a gift of $500,000 in bonds.The contributor instructs that the principal should remain intact,but the annual interest income of $50,000 can be used for the maintenance of the zoo animals. -What type of fund should be used to account for the gift of bonds and the interest income?

When a capital lease is used to lease fixed assets for the general government,the governmental fund acquiring the fixed assets debits ________ at the ________.

Old West City had the following transactions in fiscal 2014.Assume that all expenditures were properly appropriated in the fiscal 2014 budget. 1.A six-month loan was made to the special revenue fund from the general fund amounting to $28,000. 2.A purchase order for landscaping maintenance services was issued in the amount of $43,000. 3.A $10,000 nonreciprocal transfer was made to the debt service fund to pay interest amounts outstanding. 4.The final invoice for landscaping maintenance was received in the amount of $39,000,and it was scheduled to be paid in 30 days. 5.The city enters into a capital lease of fixed assets for the general government.The present value of the minimum lease payments equals $70,000. Required: Prepare the journal entries for the General Fund.

Use the following information to answer the question(s)below. The town of Mayberry receives a gift of $500,000 in bonds.The contributor instructs that the principal should remain intact,but the annual interest income of $50,000 can be used for the maintenance of the zoo animals. -When the interest income of $50,000 is received,what account should be credited?

Use the following information to answer the question(s)below. The town of Mayberry receives a gift of $500,000 in bonds.The contributor instructs that the principal should remain intact,but the annual interest income of $50,000 can be used for the maintenance of the zoo animals. -Which of the following represents the recording of a budget in the accounts of the General Fund?

1.Urban City issued $6 million of general obligation bonds at par to finance the construction of a city building.The bonds are 6%,10-year bonds,and interest is paid on June 30 and December 31. 2.The city transferred $3,600,000 from its General Fund to its Debt Service Fund to provide a portion of the resources needed to service the bonds. 3.The city paid the first interest payment to the bondholders. Required: Prepare journal entries for each of the above transactions.Identify the appropriate fund or funds used by the city of Urban.