Exam 19: An Introduction to Accounting for State and Local Governmental Units

The modified accrual basis of accounting is used for

Identify the fund type of the fund being described. 1.A fund used to account for the external portion of investment pools reported by the sponsoring government. 2.A fund used to account for resources that are legally restricted to use of the earnings only for government programs or activities. 3.A fund used to account for resources used to pay for a new stadium. 4.A fund used to account for local taxes withheld on behalf of another county. 5.A fund used to account for resources used to pay interest on a long-term bond issue. 6.A fund used to account for specific revenues that are restricted in use. 7.A fund used to account for the local swimming pool that is owned by the city and used by residents for a membership fee. 8.A fund used to account for the centralized data processing services of the state government. 9.A fund used to account for all funds except those required to be accounted for in another fund. 10.A fund that accounts for government pension plans if the government is the trustee

The following are transactions for the city of Greenville. a.Issued $50,000 10-year bonds. b.Used $30,000 of the cash to buy a truck. c.Sold the truck that was replaced which had cost $28,000, for $2,000.The old truck was fully depreciated.Residual value is zero. d.Computed depreciation on the new truck for the year of $6,000. Required: Analyze the above transactions by using the accounting equation for a governmental fund.

Because a fund is an accounting entity, each fund has I.its own accounting equation. II)its own journals, ledgers, and other accounting records. III)its own separate auditor.

The following are transactions for the city of Springfield. a.Borrowed $20,000 by issuing a three-month, 5% note. b.Paid $4,000 for equipment. c.Services for $1,000 were billed and collected. d.Year-end accrual of 3 months interest on note in (a). Required: Analyze the above transactions by using the accounting equation for a governmental fund.

Match each of the following fund types to one of the following three fund categories as indicated.Each fund category may be used more than once.

Governmental fund financial statements are prepared on the ________ basis of accounting.Proprietary fund financial statements are prepared on the ________ basis of accounting.

When examining revenue transactions, which of the following transactions is classified as an exchange transaction?

For each of the following events or transactions, identify the fund or funds that will be affected. 1.A city government charges a fee for the use of the municipal golf course. 2.Interest is paid on state government revenue bonds. 3.A motor pool was established to handle the vehicle needs of a county government. 4.Paid salaries for general governmental employees. 5.Accrued salaries for general governmental employees.

The following are transactions for the city of Springfield. a.Borrowed $20,000 by issuing a three-month, 5% note. b.Paid $4,000 for equipment. c.Services for $1,000 were billed and collected. d.Year-end accrual of 3 months interest on note in (a). Required: Analyze the above transactions by using the accounting equation for a proprietary fund.

Using the revenue types shown below, match each of the revenue sources to a revenue type.Each revenue type may be used more than once.

The following are transactions for the city of Clinton. a.Borrowed $100,000 by issuing a one-year, 5% note, three months before year-end. b.Accrued interest at year end, but did not pay the interest at year end. c.Charges for services rendered of $2,500 were billed and collected immediately. d.Incurred salary costs of $5,000, unpaid. Required: Analyze the above transactions by using the accounting equation for a governmental fund.

What basis of accounting is used to prepare Government-wide financial statements?

Which type of fund is used to account for a government activity that sells goods or services either solely or almost solely to external customers?

The accounting equation for an agency fund is

The accounting equation for a governmental fund is

For each of the following events or transactions, identify the fund or funds that will be affected. 1.A city government provides electricity services to residents for a fee. 2.A printing shop was established to handle the printing needs of a county government. 3.A philanthropist donates $1 million for zoo maintenance, only earnings can be used. 4.A city government collects sales taxes on behalf of the state and for some of its counties and municipalities. 5.Interest is paid on a state government's general obligation bonds.

The following are transactions for the city of Clinton. a.Borrowed $100,000 by issuing a one-year, 5% note, three months before year-end. b.Accrued interest at year end, but did not pay the interest at year end. c.Charges for services rendered of $2,500 were billed and collected immediately. d.Incurred salary costs of $5,000, unpaid. Required: Analyze the above transactions by using the accounting equation for a proprietary fund.