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

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

Carson County had the following transactions for their General Fund relating to the levy and collection of property taxes. 1.Property tax bills for $1,000,000 are sent to property tax owners.Taxes are due in 45 days.History shows that Carson County should expect 1.5% of the property taxes to be uncollectible. 2.$850,000 in property taxes is collected.The remaining receivables are past due. 3.An additional $80,000 of the delinquent taxes is collected. 4.Wrote off $10,000 of delinquent taxes determined to be uncollectible. Required: Prepare the journal entries in the General Fund for the transactions.

The trial balance for the General Fund for Golden City held the following balances at June 30,2014,just before closing entries were made: Required: Prepare the necessary closing entries.

Government enter the annual budget in the journal by recording a debit to the appropriations account and a credit to estimated revenues.

The unadjusted trial balance for the general fund of the City of Nineva at June 30,2014 is as follows: Debits Credits Supplies on hand at June 30,2014 totaled $8,000.The $60,000 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 Nineva at June 30,2014.

Goodwill County had the following transactions for their General Fund in the first month of their fiscal 2014 year,which ends June 30,2014. 1.The budget was approved,with $1,200,000 expected from property taxes,and another $5,000,000 expected from sales taxes.The budget showed these funds were expected to be spent on Salaries and Wages,$3,100,000; Utilities,$1,800,000; Rent,$900,000; and Supplies,$200,000. 2.Supplies were ordered in the amount of $33,000. 3.The electric bill was paid upon receipt in the amount of $75,000. 4.Property taxes were billed in the amount of $1,200,000,due on December 31.Bad debts are estimated at 1% of receivables. 5.Supplies were received,but the invoice amount was $35,000 and will be paid in 35 days.Supplies are used quickly and are not inventoried. 6.Property tax payments were received amounting to $100,000. 7.Payment was received from merchants for sales tax collections amounting to $400,000. Required: Prepare the journal entries for the General Fund that would be required for these transactions.

Encumbrance accounting records commitments made for goods on order and for unperformed contracts.

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?

The unadjusted trial balance for the general fund of the City of Jordan at June 30,2014 is as follows: Debits Credits 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.

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

Which of the following funds has similar accounting and reporting to the special revenue fund?

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.

The general fund trial balance for Lakeview City held the following balances at September 30,2014,just before closing entries were made: Required: Prepare the necessary closing entries for the General Fund.

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

Prepare journal entries to record the following grant-related transactions for a municipality's special revenue fund. 1.Special Revenue Fund awarded an operating grant from the state,$2,500,000 (cash will be received after qualified expenditures are made). 2.Special Revenue Fund received funds of $1,600,000,temporarily transferred from the General Fund. 3.Incurred qualifying expenditures on the state grant program of $1,600,000 and paid them with funds temporarily transferred from the General Fund. 4.Received a federal grant to finance planting of trees in city,$4,500,000 (cash received in advance). 5.Incurred and paid cost of $3,000,000 for planting 10,000 trees in city.

When recording an approved budget into the accounts of the general fund,which of the following accounts would be credited?

A capital lease used by the government to acquire general fixed assets requires a credit to other financing sources - capital lease.

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

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.