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

Which of the following is not a criterion of a capital lease?

What is meant by the term fiscally independent?

The city of Kamen maintains a collection of paintings of a former citizen in its City Hall building.During the year,one painting was purchased by the city for $2,000 at an auction using appropriated funds in the General Fund.Also during the year,a donation of a painting valued at $3,000 was made to the city and the city has appropriately decided to record this painting as an asset. Required: Prepare the journal entry(ies)for the two transactions for the purposes of preparing the government-wide financial statements.

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. For Government-wide financial statements,what are the journal entries to record these events in 2008 and in 2009?

The city of Nextville operates a motor pool serving all city-owned vehicles.The motor pool bought a new garage by paying $29,000 in cash and signing a note with the local bank for $280,000.Subsequently,the motor pool performed work for the police department at a cost of $17,000,which had not yet been paid.Depreciation on the garage amounted to $20,000.The first $12,000 payment made on the note included $4,800 in interest. Required: Prepare all of the journal entries for these transactions that are necessary to prepare government-wide financial statements.

The city of Kamen transferred $27,000 into a Pension Trust Fund.Of this amount,$19,000 was contributed by the city with the remainder coming from the employees. 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.

A local government's basic financial statements would include a statement of cash flows for all

What three criteria must be met to identify a governmental unit as a primary government?

A city starts a solid waste landfill during 2007.When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed.At the end of 2007,the facility was 20% full,and at the end of 2008 the facility was 45% full.If the landfill is judged to be a governmental fund,what liability is reported on the fund-based financial statements at the end of 2008?

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

According to the GASB (Governmental Accounting Standards Board),which one of the following is not a criterion for determining whether a government is legally separate?

A city starts a solid waste landfill during 2007.When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed.At the end of 2007,the facility was 20% full,and at the end of 2008 the facility was 45% full.On government-wide financial statements,which of the following are the appropriate amounts to present in the financial statements for 2008?

The City of Wetteville has a fiscal year ending June 30.Examine the following transactions for Wetteville: (A. )On 6/1/08,Wetteville enters into a 5-year lease on a copying machine.The lease meets the criteria of a capital lease and carries an implied interest rate of 10%.The copier has a present value of $2,300.Wetteville has to put a $300 down payment on the lease at the beginning of the lease with monthly payments thereafter of $42.49. (B. )On 6/5/08,Wetteville opens a new landfill.The engineers estimate that at the end of 10 years the landfill will be full.Estimated costs to close the landfill are currently at $3,500,000. (C. )On 6/15/08,the end of the two-week pay period,Wetteville has $20,000 in accrued vacation pay related to the payroll for the period.The city estimates that $5,000 of this pay will be taken by the end of this summer and the rest will be used next summer. (D. )On 6/18/08,Wetteville receives a donation of a vintage railroad steam engine.The engine will be put on display at the local town park.A fee will be charged to actually climb up into the engine.The engine has been valued at $500,000. (E. )On 6/30/08,Wetteville makes its first payment on the leased copier.The $42.49 payment includes $16.68 interest. (F. )On 6/30/08,Wetteville estimates that the landfill is 2% filled. Required: Prepare the journal entries for the above transactions in the general fund,on the dates mentioned for each lettered item,for the purposes of preparing the fund-based financial statements.

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 Net Assets

Which statement is false regarding the Balance Sheet for Fund-Based Statements?

What information is required in the financial section of a state or local government's CAFR?

Which of the following must be presented in the MD&A of a government?

What are the three broad sections of a state or local government's CAFR?

The city of Kamen maintains a collection of paintings of a former citizen in its City Hall building.During the year,one painting was purchased by the city for $2,000 at an auction using appropriated funds in the General Fund.Also during the year,a donation of a painting valued at $3,000 was made to the city. Required: Prepare the journal entry(ies)for the two transactions for the purposes of preparing the fund-based financial statements.

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 Activities