Exam 11: Accounting for State and Local Governments Part 1

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 financial statements, prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

Which classifications may be not used for the Fund Balance of governmental funds?

On June 14, 2011, 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 Financial Statements. (B.) Prepare all the required journal entries and identify the type of activity for the Government-Wide Financial Statements.

On January 1, 2011, 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. (Disregard the encumbrance entries.)

On January 1, 2011, 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 consumption method. (Disregard the encumbrance entries.)

What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?

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

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 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 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 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 financial statements are the same as governmental activities in government-wide financial statements but with different titles of the financial statements.

Generally, annual budgets are recorded within the following funds:

When a city received a federal grant for books to be purchased for a library, the money should have been recorded in

Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt?

What account is debited in the general fund when equipment is received by a governmental entity?

In governmental accounting, what term is used for a decrease in financial resources?

Revenue from property taxes should be recorded in the General Fund

Which of the following is a fiduciary fund?

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

Which of the following statements is true about Fund Balance classifications for the governmental funds?

Which of the following statements is true regarding fund financial statements?

What are the five types of governmental funds?

For each of the following transactions, select the area of accounting records in which an entry will be recorded. (A) General Fund only. (B) Governmental Activities only. (C) General Fund and Governmental Activities. (D) General Fund and Debt Service Fund. (E) Capital Projects Fund and Governmental Activities. (F) Debt Service Fund and Governmental Activities. (G) Special Revenue Fund and Governmental Activities. ___ (1.) The city council adopts an annual budget for the General Fund. ___ (2.) Property taxes are levied. ___ (3.) Computers are ordered for the fire department. ___ (4.) A transfer of funds is made from the General Fund to the Debt Service Fund. ___ (5.) The principal and interest of a bond are paid. ___ (6.) A building is acquired for the police department, and renovations begin immediately. ___ (7.) Depreciation on fire trucks is recorded. ___ (8.) Citizens are assessed for a street lighting project that has been legally restricted for those citizens. ___ (9.) A grant is received to landscape tree-lined areas beside city-owned streets. ___ (10.) The city spends grant money received in (9.) above and landscapes the tree-lined areas beside the streets for which the grant money was received.