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

The accounting equation for the Proprietary fund is

What basis of accounting is used by fiduciary funds?

On January 1, 2014, the General Fund contributes $200,000 cash to the Internal Service Fund. On January 1, 2014, the General Fund also loans $100,000 cash to the Internal Service Fund. On January 1, 2014, what journal entry does the Internal Service Fund prepare?

At December 31, 2014, an Enterprise Fund has the following adjusted accounts outstanding: When preparing the closing entry for the temporary accounts at December 31, 2014, the Enterprise Fund's accountant will

On January 1, 2014, the Enterprise Fund for a local city receives an intergovernmental capital grant of $100,000 from the state government. Upon receipt of the cash on February 1, 2014, qualifying expenses of $100,000 for the operating grant will be incurred. What journal entry did the Enterprise Fund prepare on January 1, 2014?

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

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

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, 2014 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, 2015) except for $80,000 charged to the General Fund. 3. Accrued year-end adjustments at June 30, 2015 for interest expense and depreciation. The useful life of the equipment is 5 years with no salvage value.

Journalize the following utility transactions in the Hazzard County Enterprise Fund: 1. The utility sold $4,000,000 of 6.5% revenue bonds at 98 on July 1, 2014 (an interest payment date). The bond proceeds are to be used for new plant construction and the issue will mature in 20 years. Interest is paid semi-annually on July 1 and January 1. 2. Depreciation for the year-ended December 31, 2014 included $300,000 for buildings and $190,000 for equipment. 3. The utility paid $600,000 in construction costs for the new plant. The plant is still under construction. 4. Interest on the revenue bonds was accrued at year-end, December 31, 2014. Straight-line amortization is used for bond discounts and premiums.

Willborough County had the following transactions in 2014. 1. A central motor pool was established with a $200,000 nonreciprocal transfer from the General Fund. 2. The water and sewer authority, which provides services to residents for a fee, issued a bond offering at $750,000 par. Bonds proceeds are restricted to renovating the treatment facility. 3. Willborough received a grant from the state to be used for renovation of the courthouse amounting to $800,000. The General Fund will temporarily provide $100,000 cash, because the grant is set up on a reimbursement basis and will not be distributed until proper expenditures are documented. 4. Willborough's central motor pool bills out automobile usage to various government agencies amounting to $42,000. 5. The General Fund transfers $67,000 out of the operating budget to fund the county employees' pension plan. 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.

Static City started a department to provide copy, printing and mailing services for all departments and agencies of the city. During the fiscal year from July 1, 2013 through June 30, 2014, the copy services department had the following transactions: 1. Paper and toner inventory was purchased for $58,000, on account. 2. The paper and toner inventory physical count showed only $8,000 on hand at June 30, 2014. 3. The department billed other departments for services rendered to them amounting to: General Fund, $43,000; Enterprise Fund, $24,000; Debt Service Fund, $21,000; and Trust Fund, $16,000. All receivables were collected with the exception of $6,000 from the Trust Fund which is expected to be collected in July, 2014. 4. The department incurred and paid the following expenses: salaries and wages, $23,000; Electric, $8,000; Other operating expenses, $6,000. Also, $63,000 of the Accounts Payable were paid during the year. 5. Depreciation Expense on Equipment amounted to $6,000 for the year ending June 30, 2014. 6. The department prepared the closing entries on June 30, 2014. Required: For the fiscal year ended June 30, 2014, prepare the journal entries to record the transactions for the Internal Service Fund.

What basis of accounting is used by proprietary funds?

The financial statements of a proprietary fund are similar to those of a business enterprise except for

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

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.

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

Based upon the flow information provided below for the year ending December 31, 2014, prepare a cash flow statement for the Downtown City Motor Pool, an internal service fund.

Jefferson County had the following transactions in 2014. 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.

Prepare journal entries to record the following grant-related transactions of an Enterprise Fund. 1. Received an operating grant in cash from the state, $2,500,000. 2. Incurred and paid qualifying operating expenses on the state grant program, $1,600,000. 3. Received a federal grant to finance construction of a plant, $4,500,000 (cash received in advance). 4. Incurred and paid construction costs on the plant, $3,000,000. The plant is not completed.