Exam 16: Accounting for State and Local Governments, Part I

The Town of Anthrop receives a $10,000 grant to make the Town Hall handicapped-accessible. Required: Prepare the journal entry,and identify the fund in which it is recorded,to record the receipt of the grant.

GASB Statement Number 33 divides all eligibility requirements into four general classifications including all of the following except:

How do the balance sheet and statement of revenues,expenditures,and changes in fund balances of governmental funds differ from the financial statement presentation for the governmental activities in the government-wide statement of net assets and statement of activities? (1)Internal service funds are not included in the fund-based financial statements of governmental funds but could be reported in the governmental activities of government-wide financial statements. (2)The economic resources measurement basis is used for fund-based financial statements of governmental funds and the current financial resources measurement basis is used for governmental activities in the government-wide financial statements. (3)Modified accrual accounting is used for fund-based financial statements of governmental funds to time revenues and expenditures and accrual accounting is used for governmental activities of government=wide financial statements. (4)The financial statements of governmental funds for fund-based financial statements are the same as governmental activities in government-wide financial statements but with different titles of the financial statements.

When a city holds pension monies for city employees,the monies should be recorded in

Bay City received a federal grant to provide health care services to low income mothers and children.When should the revenues be recognized?

A $910,000 bond was issued on October 1,2008 to build a new road.The bonds carried a 6% interest rate and are due in 10 years. Required: (A. )Prepare the required journal entry in the Capital Projects Fund on October 1 for the Fund-Based Financial Statements. (B. )Prepare the required journal entry for the Government-Wide Financial Statements.

What organization is responsible for establishing accounting principles for governmental entities? By whom was this organization established?

When a city collects fees from citizens who use the public swimming pool,the money should be recorded in

Under modified accrual accounting,revenues should be recognized when they are

When a city received a federal grant for providing food and other assistance to the homeless,the money should have been recorded in

The town council adopted an annual budget estimating general revenues of $2,000,000,approved expenditures of $1,700,000 and other financing for other funds of $130,000. Required: Record the journal entry to record the budget and identify the fund in which it is recorded.

What are the two groups of financial statements mandated by GASB Statement No.34? For each group,what are the names of the individual statements that must be produced?

Governmental funds are

A city enacted a special tax levy to provide medical services at the municipal hospital.What kind of fund should have been used to record the revenues generated by the tax?

On June 14,2008,Fred City agreed to transfer cash of $52,000 from the General Fund to provide permanent financing for a municipal swimming pool that will be viewed as an Enterprise Fund.The cash was transferred on June 30. Required: (A. )Prepare all the required journal entries and identify the fund in which each entry was recorded for the Fund-Based Financial Statements. (B. )Prepare all the required journal entries and identify the type of activity for the Government-Wide Financial Statements.

On August 21,2008,Fred City transferred $100,000 to the School System to cover repairs to a school building. Required: Prepare all the required journal entries and identify the fund in which each entry was recorded for the Fund-Based Financial Statements.

Which of the following statements is false regarding government-wide financial statements?

Which type of fund is not included in the Government-Wide Financial Statements?

A city received a grant of $5,000,000 from a private agency.The money was to be used to build a new city library.In which fund should the money be recorded for the Fund-Based Financial Statements?

On January 1,2008,Wakefield City purchased $40,000 office supplies.During the year $35,000 of these supplies were used. Required: Record the journal entries for these transactions using the purchases method.