Exam 17: Governmental Entities: Introduction and General Fund Accounting

Accounting processes differ between a for-profit entity and a governmental entity.Discuss three differences between a governmental entity and a for-profit entity.

The general fund of the Town of Dean levied property taxes of $3,000,000 for the fiscal year beginning on January 1,20X8.It was estimated that 1% of the levy would be uncollectible.During the period January 1,20X8,through December 31,20X8,$2,960,000 of the property tax levy was collected.At December 31,20X8,Dean estimated that $10,000 of property taxes levied in 20X8 would be collected during the first 60 days of 20X9.What amount of property tax revenue should be reported by the general fund for the year ended December 31,20X8?

The general fund of Loveland ordered a new fire truck on November 12,20X8,for $150,000.The order was appropriately encumbered on this date.Loveland received the fire truck on January 15,20X9,and issued a voucher to the manufacturer for $148,600.Loveland uses the calendar year for reporting,and outstanding encumbrances at December 31,20X8,are lapsing.On January 15,20X9,the general fund of Loveland should debit:

Which of the following characteristics are emphasized in the accounting for state and local government entities? I.Revenues should be matched with expenditures to measure success or failure of the government entity. II.There is an emphasis on expendability of resources to accomplish objectives of the governmental entity.

Briefly discuss the various types of governmental funds and proprietary funds.

What is the correct sequence in the expenditure process in governmental accounting?

The general fund of Gillette levied property taxes of $400,000 on November 1,20X8.However,the property taxes are not collectible until May and August of 20X9.Assume Gillette reports on the calendar year.On Gillette's general fund balance sheet at December 31,20X8,the property taxes levied on November 1 should:

Assuming there is a budget surplus,which of the following accounts are credited when the general fund records its operating budget at the beginning of the year?

The general fund of the City of Columbia transferred money to establish an internal service fund for the city's data processing needs.The general fund of Columbia should account for this transaction as a(n):

Goshen City acquires $36,000 of inventory on November 1,20X5,having held no inventory previously.On December 31,20X5,the end of Goshen City's fiscal year,a physical count shows $7,000 still in stock.During 20X6,$5,000 of this inventory is used,resulting in a $2,000 remaining balance of supplies on December 31,20X6. -Based on the preceding information,which of the following would be the correct account balances for 20X5 if Goshen City used the purchase method of accounting for inventories?

The following information was obtained from the general fund balance sheet of Lima Village on June 30,20X9,the close of its fiscal year: On June 30,20X9,what was Lima's unassigned fund balance in its general fund?

Which governmental fund includes resources that are legally restricted so that the governmental entity must maintain the principal and can use only the earnings from the fund's resources to benefit the government's programs for all of its citizens?

What amount should be reported as expenditures for the current fiscal year when accounting for inventories of supplies under the purchase method and under the consumption method?

On July 25,20X8,the city of Pullman,which reports on a calendar-year basis,ordered five police cars at an estimated cost of $200,000.On August 26,20X8,the police cars were received,and the actual cost amounted to $197,000.Pullman encumbered the appropriation for police cars in its general fund when the cars were ordered.When the police cars were received,the general fund of Pullman should:

In accounting for governmental funds,which of the following items could appear only on governmentwide financial statements? I.Fixed assets II.Long-term debt III.Investments

Works of art and historical treasures purchased by the general fund should be reported as: I.an expenditure in the general fund. II.assets in the government-wide financial statements.

The general ledger of Covington contains the following selected account balances: Covington wants to order additional goods and services before the fiscal year end.What is the unencumbered balance of the budget that may be expended by Covington?

The general fund of Richmond was billed $22,000 on August 15,20X8,for using the services of one of its internal service funds (ISF).What accounts should be debited and credited,respectively,in the general fund on August 15,20X8,to record this transaction?

The general fund of Athens ordered computer equipment on December 1,20X8,for $32,000.The order was appropriately encumbered on this date.Athens received the computer equipment on January 25,20X9,and issued a voucher to pay the vendor $32,400.Athens uses the calendar year for reporting,and all outstanding encumbrances lapse at year-end.Athens' governing board honors all outstanding encumbrances by including them in the following year's appropriations.On January 25,20X9,the general fund of Athens should debit:

The following information pertains to property taxes levied by Sycamore City for 20X7: What amount should Sycamore report for 20X7 net property tax revenues?