Exam 19: An Introduction to Accounting for State and Local Governmental Units

The following are transactions for the city of Salem. a.Incurred salaries of $44,000 to be paid next month. b.Tax bills totaling $500,000 mailed to city residents. c.Paid salaries above. d.Computer equipment received in the amount of $11,000,to be paid in 30 days. Required: Analyze the above transactions by using the accounting equation for a governmental fund.

The following are transactions for the city of Franklin. a.Borrowed $20,000 by issuing a two-year note. b.Purchased equipment for $6,000 cash. c.Licenses for $700 were billed on account. d.Accrued employee salary costs of $7,000. e.Depreciation expense on equipment for year,$1,000. Required: Analyze the above transactions by using the accounting equation for a proprietary fund.

Which type of fund is used to account for a government activity that sells goods or services either solely or almost solely to external customers?

The following are transactions for the city of Springfield. a.Borrowed $20,000 by issuing a three-month,5% note. b.Paid $4,000 for equipment. c.Services for $1,000 were billed and collected. d.Year-end accrual of 3 months interest on note in (a). Required: Analyze the above transactions by using the accounting equation for a proprietary fund.

The accounting equation for a governmental fund is

Internal Service Funds differ from Enterprise Funds because Internal Service Funds

The following are transactions for the city of Greenville. a.Issued $50,000 10-year bonds. b.Used $30,000 of the cash to buy a truck. c.Sold the truck that was replaced which had cost $28,000,for $2,000.The old truck was fully depreciated.Residual value is zero. d.Computed depreciation on the new truck for the year of $6,000. Required: Analyze the above transactions by using the accounting equation for a governmental fund.

The following are transactions for the city of Salem. a.Incurred salaries of $44,000 to be paid next month. b.Tax bills totaling $500,000 mailed to city residents. c.Paid salaries above. d.Computer equipment received in the amount of $11,000,to be paid in 30 days. Required: Analyze the above transactions by using the accounting equation for a proprietary fund.

Which pronouncements have the highest level of authority for state and local governments?

The accounting equation for an agency fund is

When examining revenue transactions,which of the following transactions is classified as an exchange transaction?

For each of the following events or transactions,identify the fund or funds that will be affected. 1.A city government provides electricity services to residents for a fee. 2.A printing shop was established to handle the printing needs of a county government. 3.A philanthropist donates $1 million for zoo maintenance,only earnings can be used. 4.A city government collects sales taxes on behalf of the state and for some of its counties and municipalities. 5.Interest is paid on a state government's general obligation bonds.

Governmental fund financial statements are prepared on the ________ basis of accounting.Proprietary fund financial statements are prepared on the ________ basis of accounting.

Government-wide financial statements include a

What funds are reported in Government-wide financial statements?

Government-wide financial statements exclude the

Identify the fund type of the fund being described. 1.A fund used to account for the external portion of investment pools reported by the sponsoring government. 2.A fund used to account for resources that are legally restricted to use of the earnings only for government programs or activities. 3.A fund used to account for resources used to pay for a new stadium. 4.A fund used to account for local taxes withheld on behalf of another county. 5.A fund used to account for resources used to pay interest on a long-term bond issue. 6.A fund used to account for specific revenues that are restricted in use. 7.A fund used to account for the local swimming pool that is owned by the city and used by residents for a membership fee. 8.A fund used to account for the centralized data processing services of the state government. 9.A fund used to account for all funds except those required to be accounted for in another fund. 10.A fund that accounts for government pension plans if the government is the trustee

The following are transactions for the city of Franklin. a.Borrowed $20,000 by issuing a two-year note. b.Purchased equipment for $6,000 cash. c.Licenses for $700 were billed on account. d.Accrued employee salary costs of $7,000. e.Depreciation expense on equipment for year,$1,000. Required: Analyze the above transactions by using the accounting equation for a governmental fund.

Match each of the following fund types to one of the following three fund categories as indicated.Each fund category may be used more than once. A.Governmental Fund B.Proprietary Fund C.Fiduciary Fund ________ 1.Debt Service Fund ________ 2.Internal Service Fund ________ 3.Agency Fund ________ 4.General Fund ________ 5.Permanent Fund ________ 6.Enterprise Fund ________ 7.Capital Projects Fund ________ 8.Trust Fund ________ 9.Special Revenue Fund ________ 10.Pension Fund

The following are transactions for the city of Clinton. a.Borrowed $100,000 by issuing a one-year,5% note,three months before year-end. b.Accrued interest at year end,but did not pay the interest at year end. c.Charges for services rendered of $2,500 were billed and collected immediately. d.Incurred salary costs of $5,000,unpaid. Required: Analyze the above transactions by using the accounting equation for a governmental fund.