Exam 8: Government-Wide Statements, Capital Assets, Long-Term Debt

A government reported an other financing source in the amount of $900,000 related to the sale of land in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances.The land had a cost of $340,000.The amount that would be reported in the government-wide Statement of Activities would be:

A governmental fund's Statement of Revenues,Expenditures,and Changes in Fund Balances reported expenditures of $40 million,including capital outlay expenditures of $11 million.Capital assets for that government cost $80 million,including land in the amount of $10 million.Depreciable assets are amortized over 10 years,on average.The reconciliation from governmental fund changes in fund balances to governmental activities change in net assets would reflect a(an):

Which of the following is true regarding the government-wide Statement of Net Assets?

GASB does not require that "collections" be capitalized and depreciated.

The government-wide statements include a government-wide Statement of Cash Flows.

The City of Madison,a general purpose government,reported fund balances in the amount of $18,700,000 in the governmental funds balance sheet dated December 31,2014.In addition,the following information is relevant: A.General government capital assets amounted to $28,000,000.Accumulated depreciation of those capital assets amounted to $12,000,000.Enterprise fund capital assets amounted to $ 17,000,000 with accumulated depreciation of $ 8,400,000. B.Internal service fund's net assets amounted to $2,500,000.These were reported in the proprietary funds fund basis statements but serve departments in the General Fund. C.Deferred Property Taxes,which should be recognized as revenue in the government-wide statements,amounted to $ 200,000.The balance of deferred property taxes from the previous year was $ 170,000. D.Liabilities,in addition to the amount reported in the governmental funds balance sheet included accrued interest payable,$300,000; E.General long-term liabilities of the government amounted to (1)general obligation bonds of $ 6,000,000 and (2)compensated absences payable of $1,500,000.Revenue Bonds Payable in the enterprise fund totaled $ 2,000,000. Required: Prepare a reconciliation from the fund balances recognized in the governmental funds balance sheet to the net assets recognized in the governmental funds column of the government-wide statement of net assets.

The City of Odessa maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements.As such,the City's internal service fund,a print shop fund,is included in the proprietary funds statements.Required: Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities: A.Balance sheet accounts include: Cash,$150,000; Inventories,$425,000; Capital Assets,$1,200,000; Accumulated Depreciation,$600,000; Accounts Payable,$150,000; and Bonds Payable,$500,000. B.The only transaction in the internal service fund that is external to the government is interest expense in the amount of $15,000. C.Exclusive of the interest expense,the internal service fund reported operating income of $40,000.An examination of the records indicates that services were provided as follows: one half to general government,one fourth to public safety,one fourth to culture and recreation.

The following information is available for the preparation of the government-wide financial statements for the City of Fishersville for the year ended June 30,2014: Required: From the information given above,prepare,in good form,a Statement of Activities for the City of Fishersville for the year ended June 30,2014.Fishersville has no component units. Chapter 08 - Government-Wide Statements,Capital Assets,Long-Term Debt 8-PAGE 40

A government recorded transfers out of the General Fund to the debt service fund in the amount of $ 300,000 and to the enterprise fund in the amount of $ 600,000.The amount that would be shown as a transfer in the governmental activities column of the Statement of Activities would be:

Where in the basic financial statements would one find fiduciary activities reported?

Balances from enterprise fund statements,Statement of Net Assets and Statement of Revenues,Expenses,and Changes in Fund Net Assets,are reported in the business-type activities sections of government-wide statements.

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

The governmental funds follow __________ where the government-wide statements follow ___________.

The City of Thomasville maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide financial statements.Required: You are to prepare,in journal form,worksheet adjustments for each of the following situations. A.General fixed assets,as of the beginning of the year,which had not been recorded,were as follows: B.During the year,expenditures for capital outlays amounted to $14,250,000.Of that amount,$11,900,000 was for buildings; $1,950,000 was for improvements other than buildings,$ 10,000 was capitalized interest and the remainder was for land. C.The capital outlay expenditures outlined in (B)were completed at the end of the year (no depreciation until next year).For purposes of financial statement presentation,all capital assets are depreciated using the straight-line method,with no estimated salvage value.Estimated lives are as follows: buildings,50 years; improvements other than buildings,20 years; equipment,10 years. D.Equipment with a cost of $ 86,600 and accumulated depreciation at the time of sale of $56,600 was sold for $35,000.

When using the modified approach to account for infrastructures,expenditures to extend the life of the infrastructure assets are:

When using the modified approach to account for infrastructures,expenditures to extend the life of the infrastructure assets are expensed.

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

Which of the following funds would not be included in the government-wide financial statements

For the depreciation of infrastructure…

When preparing the government-wide statements,worksheet entries are never booked; they are only used on the worksheets.