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

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

The Deferred Revenue account in government accounting is frequently used for

Use the following information to answer the question(s) below. The town of Mayberry receives a gift of $500,000 in bonds. The contributor instructs that the principal should remain intact, but the annual interest income of $50,000 can be used for the maintenance of the zoo animals. -When the donation of bonds is received, what account should be debited?

The following information regarding the fiscal year ended September 30, 2011, was drawn from the accounts and records of the Mayberry County general fund: Required: Prepare a statement of revenues, expenditures, and changes in fund balance for the Mayberry County general fund for the year ended September 30, 2011.

The trial balance for the General Fund for Golden City held the following balances at June 30, 2011, just before closing entries were made: Required: Prepare the necessary closing entries.

When a city enters into a capital lease for a fixed asset for the general government,

The estimated revenues control account of Metro City's general fund is created when

The general fund trial balance for Lakeview City held the following balances at September 30, 2011, just before closing entries were made: Required:

The unadjusted trial balance for the general fund of the City of Nineva at June 30, 2011 is as follows: Supplies on hand at June 30, 2011 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, 2011.

Governments must record a liability for uncollected taxes instead of revenues for uncollected taxes if the taxes are going to be collected

For each of the following transactions relating to the startup of a community pool, determine the fund(s)being affected and prepare the appropriate journal entry for each.Be sure to note the fund type with each journal entry prepared. 1.General obligation bonds are issued at face value of $500,000 to construct a new community pool. 2.Cash of $100,000 is received from a state grant.Grant is set up to support the construction of the community pool. 3.A community fund-raiser by a citizens' group raises $50,000 which is donated to the pool fund, with the restriction placed on it that only earnings are to be used for lifeguard wages, and the principal may not be used until such time as the pool ceases to operate, at which time the principal will revert to the general fund. 4.Construction is completed and the contractors invoices received, totaling $578,000.The invoices are paid within 60 days. 5.The balance of funds from the general obligation bonds and state grant that was not used is transferred to the General Fund.

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

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

Prepare journal entries to record the following grant-related transactions for a municipality 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.

The proceeds from a bond issuance for the construction of a new public school should be recorded in the ________ fund at the time the bonds are sold.At the time of the bond issue, the debit is to cash and the credit is to ________.

What statements are required for Government-wide financial statements?

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

1.Urban City issued $6 million of general obligation bonds at par to finance the construction of a city building.The bonds are 6%, 10-year bonds, and interest is paid on June 30 and December 31. 2.The city transferred $3,600,000 from its General Fund to its Debt Service Fund to provide a portion of the resources needed to service the bonds. 3.The city paid the first interest payment to the bondholders. Required: Prepare journal entries for each of the above transactions.Identify the appropriate fund or funds used by the city of Urban.

Peking County incurred the following transactions during 2011: 1.Marketable securities were donated to support the county's bike and nature trails.The donor acquired the securities for $35,000 ten years earlier; however, their current market value was $200,000.The donor specified that all income from the securities be used for the trails.The principal is to be held intact for an indefinite period of time. 2.Computer equipment was ordered for general fund departments.The estimated cost was $48,000. 3.The county received the computer equipment.The actual cost was $47,750, of which $42,000 was paid to the vendor before year-end. 4.The county sold a (general government)dump truck that originally cost $55,000.The county sold the truck at auction for $3,300.The book value of the truck at the time of sale was $0. 5.The government leased equipment for the general government under a capital lease agreement.The present value of the minimum lease payments was $120,000.The county made an initial down payment of $10,000. Required: Prepare journal entries for each of the above transactions.Identify the appropriate fund or funds used by Peking County.

Address the following situations separately. 1.For the budgetary year beginning July 1, 2011, Coastal City expected the following cash flow resources: In the budgetary entry, what amount did Coastal City record for estimated revenues? 2.During the fiscal year ended June 30, 2011, Western County issued purchase orders totaling $7,000,000.Western County received $6,500,000 of invoiced goods at the encumbered amounts and paid $6,100,000 toward them before year-end. How much were Western County's encumbrances on July 1, 2011? 3.The following information pertains to property taxes levied ($1,035,000 total)by Southern Township for the calendar year 2011: What amount did Southern Township report for property tax revenues in 2011? 4.The following information pertains to Northern City's general fund for 2011: At what amount will Northern City's total fund balance increase (decrease)in 2011?