Exam 17: Governmental Entities: Introduction and General Fund Accounting

The Town of Baker reported the following items on the June 30,20X9,balance sheet of its general fund: At June 30,20X9,what amount should be reported for Fund Balance-Unassigned?

Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. During 20X8, $6,500 of this inventory is used, resulting in a $1,500 remaining balance of supplies on December 31, 20X8. -Based on the preceding information,which of the following would be the correct account balances for 20X8 if Gotham City used the purchase method of accounting for inventories?

Due to an error,the general fund of Pueblo did not record an encumbrance for police equipment which had been ordered but not received on June 30,20X9,the end of its fiscal year.Pueblo's outstanding encumbrances at year-end are nonlapsing.What was the effect of this error on the balance sheet of Pueblo's general fund?

The general ledger of Broadway contains the following selected account balances: Broadway wants to order additional goods and services before the fiscal year end.What is the unencumbered balance of the budget that may be expended by Broadway?

In a town's general fund operating budget for the year,the amount of its estimated revenues exceeded the amount of its appropriations.This excess should be:

When the budget of a governmental unit,for which the estimated revenues exceed the appropriations,is adopted and recorded in the general ledger at the beginning of the year,the budgetary fund balance account is

According to the latest GASB exposure draft,which of the following is the only governmental fund type that may report an unassigned fund balance?

Briefly discuss the various types of governmental funds and proprietary funds.

Which of the following funds are classified as fiduciary funds?

When an internal service fund (ISF)enters into a capital lease the transaction is recorded in the: I.fixed assets of the ISF. II.long-term debt of the ISF.

Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. During 20X8, $6,500 of this inventory is used, resulting in a $1,500 remaining balance of supplies on December 31, 20X8. -Based on the preceding information,which of the following would be the correct account balances for 20X8 if Gotham City used the consumption method of accounting for inventories?

What amount should be reported as expenditures for the current fiscal year when accounting for inventories of supplies under the purchase method and under the consumption method?

Which of the following funds are classified as governmental funds?

The general fund of Gillette levied property taxes of $400,000 on November 1,20X8.However,the property taxes are not collectible until May and August of 20X9.Assume Gillette reports on the calendar year.On Gillette's general fund balance sheet at December 31,20X8,the property taxes levied on November 1 should:

Pine City's year end is June 30.Pine levies property taxes in January of each year for the calendar year.One-half of the levy is due in May and one-half is due in October.Property tax revenue is budgeted for the period in which payment is due.The following information pertains to Pine's property taxes for the period from July 1,20X4,to June 30,20X5: Calendar Year The $40,000 balance due for the May 20X5 installments was expected to be collected in August 20X5.What amount should Pine recognize for property tax revenue for the year ended June 30,20X5?

The general fund of Wold Township ordered office furniture for the mayor's office on August 1,20X8.The office furniture was estimated to cost $12,000.The office furniture was received on September 1,20X8,with the actual cost being $11,800.Which of the following accounts decreased on September 1,20X8?

The general fund of Athens ordered computer equipment on December 1,20X8,for $32,000.The order was appropriately encumbered on this date.Athens received the computer equipment on January 25,20X9,and issued a voucher to pay the vendor $32,400.Athens uses the calendar year for reporting,and all outstanding encumbrances lapse at year-end.Athens' governing board honors all outstanding encumbrances by including them in the following year's appropriations.On January 25,20X9,the general fund of Athens should debit:

The general fund of Sun City was billed $7,000 for using the services of one of its internal service funds.The general fund should account for this transaction as a(n)

Blue Ridge Township uses the consumption method of accounting for its inventory of supplies.On the December 31,20X7 balance sheet for the general fund,the township reported $10,000 of supplies inventory.During 20X8,expenditures for supplies amounted to $40,000,and,at December 31,20X8,unused supplies totaled $7,000.In the adjusting entry for supplies at December 31,20X8,

The general fund of Battle Creek budgeted a transfer to its capital projects fund for $110,000 to be used in operations during the year ended June 20,20X9.On September 15,20X8,the general fund transferred $110,000 to the capital projects fund.What account should be debited in the general fund on September 15 to record this transfer?