Exam 17: Governmental Entities: Introduction and General Fund Accounting

Which of the financial statements described below is prepared by the general fund of a state or local government?

The Board of Commissioners of the City of Rockton adopted its budget for the year ending July 31,20X2,which indicated revenues of $1,000,000 and appropriations of $900,000.If the budget is formally integrated into the accounting records,what is the required journal entry?

The general fund of the City of Atlanta received a check for $10,000 from an Atlanta resident on July 1,20X8.Of the amount received,$4,800 represented full payment of property taxes for 20X8,and the remaining $5,200 represented an advance payment for property taxes of 20X9.On July 1,20X8,the general fund should record the receipt by debiting Cash for $10,000 and by crediting

Which combination of fund and measurement basis is correct?

The town of Stow was incorporated and began governmental operations on July 1,20X8.Stow's transactions and events for the fiscal year ended June 30,20X9,are listed below.Stow uses the consumption method of accounting for purchases of supplies.Encumbrances do not lapse at year end. Required: Prepare the journal entry (ies)required in the general fund for each of the following transactions or events. a.The town budget was approved,providing for revenues of $800,000,a $40,000 transfer to establish an internal service fund (ISF),and expenditures of $750,000. b.Property taxes were levied in the amount of $700,000,with 4 percent of the total estimated to be uncollectible. c.Purchase orders were issued in the amount of $90,000 for equipment,and $635,000 for other goods and services. d.Collections for fines and licenses totaled $99,000 for the year. e.Property taxes collected amounted to $680,000; the balance was reclassified as delinquent,and the allowance for uncollectible taxes was reduced to $15,000. f.The equipment ordered was received,and a voucher was issued for the final invoice cost of $91,000. g.All but $12,000 of the other goods and services ordered was received.Vouchers were issued for the invoice cost of $622,000. h.All but $10,000 of the vouchers issued during the year was paid. i.A transfer in the amount of $40,000 was made to establish an internal service fund for the town.The general fund received services of $7,000 from the internal service fund during the year,with $2,000 remaining unpaid at year end. j.Expenditures recorded for the year included the purchase of supplies.The estimated balance of supplies on hand at year end was $2,000. k.A reserve was established at year end for the outstanding encumbrances,all of which will be honored in the next fiscal year. l.Closing entries were made. Problem 86 (continued):

Assuming there is a budget surplus,which of the following accounts are credited when the general fund records its operating budget at the beginning of the year?

The general fund of Loveland ordered a new fire truck on November 12,20X8,for $150,000.The order was appropriately encumbered on this date.Loveland received the fire truck on January 15,20X9,and issued a voucher to the manufacturer for $148,600.Loveland uses the calendar year for reporting,and outstanding encumbrances at December 31,20X8,are lapsing.On January 15,20X9,the general fund of Loveland should debit:

The general fund of Caldwell had the following operating budget for the fiscal year beginning July 1,20X9: When the general fund records its operating budget on July 1,20X9,Budgetary Fund Balance-Unassigned should be

The general fund of Richmond was billed $22,000 on August 15,20X8,for using the services of one of its internal service funds (ISF).What accounts should be debited and credited,respectively,in the general fund on August 15,20X8,to record this transaction?

Which of the following statements best describes the reporting process for profit seeking and governmental entities?

Goshen City acquires $36,000 of inventory on November 1, 20X5, having held no inventory previously. On December 31, 20X5, the end of Goshen City's fiscal year, a physical count shows $7,000 still in stock. During 20X6, $5,000 of this inventory is used, resulting in a $2,000 remaining balance of supplies on December 31, 20X6. -Based on the preceding information,which of the following would be the correct account balances for 20X5 if Goshen City used the consumption method of accounting for inventories?

The general fund of Park City acquired computer equipment at a cost of $50,000 on May 18,20X9.To record acquisition of this equipment,the general fund of Park City should debit:

Which organization has the authority to establish generally accepted accounting principles for state and local government entities?

Which of the following characteristics are emphasized in the accounting for state and local government entities? I.Revenues should be matched with expenditures to measure success or failure of the government entity. II.There is an emphasis on expendability of resources to accomplish objectives of the governmental entity.

Revenues from parking meters and parking fines should be reported in the general fund when:

Which of the following accounts are debited when closing entries are made for the general fund (assume outstanding encumbrances lapse at year-end)?

The following information pertains to property taxes levied by Oak City for 20X4: What amount should Oak report for 20X4 net property tax revenues?

Which accounts described below would have non-zero balances after the accounts are closed in the general fund of a state or local government?

At the end of the fiscal year,uncollected property taxes in the general fund should be:

In accounting for governmental funds,which of the following items could appear only on government-wide financial statements?