Exam 17: Accounting for State and Local Governments,part II

The city operates a public pool where each person is assessed a $2 entrance fee.Which fund is most appropriate to record these revenues?

Marie Todd works for the City of Rochester and volunteered to work the New Years Eve holiday in December,2008.In exchange for working the holiday,the city will grant her 2 vacation days compensated at $500 per day.Marie decided to take these vacation days during January,2009. Assuming that Marie works in an activity reported within the General fund,for Fund-based financial statements,what are the journal entries to record these events?

A five-year lease is signed by the City of Wachovia for equipment with a seven-year life.The asset will be returned to the lessor at the end of the lease.The present value of the lease is $20,000,and annual payments of $5,411.41 are payable beginning on the date the lease is signed.The interest portion of the second payment is $1,604.75.The equipment is to be used in City Hall and was purchased from appropriated funds of the General Fund. What should be recorded in the General Fund one year from the date the lease is signed?

Jones College,a public institution of higher education,must prepare financial statements

The employees of the City of Raymond earn vacation compensation that totals $1,500 per week.During 2008,$30,000 in vacation time was taken and $48,000 is expected to be used during the latter part of next year.On fund-based financial statements,what liability should be reported at the end of 2008?

The town of Wakefield opened a solid waste landfill in 2007 that was at 20% capacity on December 31,2007 and at 50% capacity on December 31,2008.The city initially anticipated closure costs of $2.3 million but in 2008 estimated the closure costs would be $2.7 million.None of these costs will be incurred until the landfill is scheduled to be closed. What is the journal entry that should be recorded on December 31,2008 for Government-wide Financial Statements?

For government-wide financial statements,what account is credited when a piece of equipment is leased on a capital lease?

The city of Kamen collected $17,000 from parking meters that must be transferred to the county government. Required: For fund-based financial statements,prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

Drye Township has received a donation of a rare painting worth $1,000,000.For Drye's government-wide financial statements,three criteria must be met before Drye can opt not to recognize the painting as an asset.Which of the following is not one of the three criteria? (1) )The painting is held for public exhibition,education,or research in furtherance of public service,rather than financial gain. (2) )The painting is scheduled to be sold immediately at auction. (3) )The painting is protected,kept unencumbered,cared for,and preserved.

How is the Statement of Cash Flows for Proprietary Funds similar and dissimilar to a Statement of Cash Flows for a for-profit business?

The town of Wakefield opened a solid waste landfill in 2007 that was at 20% capacity on December 31,2007 and at 50% capacity on December 31,2008.The city initially anticipated closure costs of $2.3 million but in 2008 estimated the closure costs would be $2.7 million.None of these costs will be incurred until the landfill is scheduled to be closed. Assuming the landfill is recorded within the General fund,what is the journal entry that should be recorded in the Fundbased Financial Statements on December 31,2008?

Which one of the following is a criterion for identifying a primary government?

The parking garage and parking lots owned by the city of Danton reported the following balances for 2008: SHAPE \* MERGEFORMAT Required: What amount of net revenue (or expense)should be reported by the fund that was used to account for parking operations assuming the preparation of government-wide financial statements?

Which statement is false regarding the Statement of Revenues,Expenditures,and Changes in Fund Balance when it is included with government-wide financial statements?

The employees of the City of Raymond earn vacation compensation that totals $1,500 per week.During 2008,$30,000 in vacation time was taken and the remainder is expected to be used next year.On the government-wide financial statements,assuming there was no beginning balance,what liability should be reported at the end of 2008?

REFERENCE: Ref.17_01 The Town of Portsmouth has at the beginning of the year a $213,000 Net Asset balance,and a $52,000 Fund Balance. The following information relates to the activities within the town of Portsmouth for the year of 2008. -Prepare a Statement of Revenues,Expenditures and Changes in Fund Balances

A five-year lease is signed by the City of Wachovia for equipment with a seven-year life.The asset will be returned to the lessor at the end of the lease.The present value of the lease is $20,000,and annual payments of $5,411.41 are payable beginning on the date the lease is signed.The interest portion of the second payment is $1,604.75.The equipment is to be used in City Hall and was purchased from appropriated funds of the General Fund. What entry should be made for the government-wide financial statements one year from the date the lease is signed?

Which of the following is a section of the general purpose external financial statements of a state or local government? (1)Management's discussion and analysis (MD&A). (2)Required supplementary information (other than MD&A). (3) )Basic financial statements and notes to financial statements.

Which of the following is a financial statement of a fiduciary fund?

Which criteria must be met to be considered a special purpose government? (1) )Have a separately elected governing body (2) )Be legally independent (3) )Be fiscally independent