Exam 18: Introduction to Accounting for State and Local Governmental Units

The following events take place: 1.Interest payments in the amount of $20,000 that are the responsibility of the Debt Service Fund are paid by the General Fund. 2.The Internal Service Fund bills the Special Revenue Fund $25,000 for services performed. 3.The Special Revenue Fund transfers $10,000 to the Internal Service Fund as a temporary loan. 4.The General Fund transfers $150,000 to start an Internal Service Fund. Required: Identify the interfund activity as a loan,services provided and used,interfund transfer,or interfund reimbursement and prepare entries in general journal form to record the transactions on the records of the fund involved.

For state and local government units,the full accrual basis of accounting should be used for what type of fund?

One of the differences between accounting for a governmental unit and a commercial unit is that a governmental unit should:

Which of the following funds frequently does NOT have a fund balance?

The following transactions take place: 1.On January 1,the city issued 9% general obligation bonds with a face value of $4,000,000 payable in 10 years to finance the construction of city offices.Total proceeds were $4,500,000. 2.On December 20,construction was completed and occupancy taken of the city offices.The full cost of $3,900,000 was paid to the contractor,and appropriate closing entries were made with regard to the project. 3.The General Fund repaid the Special Revenue Fund a loan of $15,000 plus $900 in interest on the loan. Required: Prepare entries in general journal form to record these transactions in the proper fund(s).Designate the fund in which each entry is recorded.

The general fund trial balance for Model City held the following balances at June 30,2014,just before closing entries were made: Required: Prepare the necessary closing entries.

Part of the general obligation bond proceeds from a new issuance was used to pay for the cost of a new city hall as soon as construction was completed.The remainder of the proceeds was transferred to repay the debt.Entries are needed to record these transactions in the:

Which of the following funds of a governmental unit recognizes revenues and expenditures under the same basis of accounting as the general fund?

When a truck is received by a governmental unit,it should be recorded in the General Fund as a(n):

A nonrecurring contribution from the General Fund to the Enterprise Fund is an example of an interfund:

Which of the following funds would account for operations that are financed and operated in a manner similar to private business enterprises?

There are eleven categories of government fund entities that fall under three subheadings.What are the subheadings of government fund entities? What are the main characteristics that set these three subheadings apart?

Encumbrances would NOT appear in which fund?

Repayments from the funds responsible for a particular expenditure to the funds that initially paid for them are interfund:

Fixed assets and noncurrent liabilities are accounted for in the records of:

Which of the following is NOT a budgetary account?

Revenues of a special revenue fund of a governmental unit should be recognized in the period in which the:

The activities of a central computer facility should be accounted for in the:

All of the following are Governmental (Expendable)Fund Entities EXCEPT the:

An interfund transfer should be reported in a governmental fund operating statement as a(n):