Exam 5: Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

At the inception of a capital lease agreement for a piece of equipment used in governmental operations,

Which of the following statements is false?

Fund balances of debt service funds are classified among the categories identified in GASB Statement 54 as Restricted and Unrestricted.

General fixed assets that are acquired with governmental fund resources are reported as assets in the:

What amount would be reported as debt service expenditures in the year ended June 30,2015?

When a payment is due to a contractor from capital projects fund resources,the debit would be to:

Capital assets are not reported in governmental funds.

The General Fund is always considered to be a major fund. When are other governmental funds considered major?

The following are sources of funds for the debt service fund except:

Use the following to answer the next six questions: During the fiscal year ended December 31, 2015, the City of Johnstown issued 6% general obligation serial bonds in the amount of $2,000,000 at 102 ($2,040,000) and used $1,980,000 of the proceeds to construct a fire station. The $40,000 premium was transferred to a debt service fund. The $20,000 left in the capital projects fund at the end of the project was later transferred to the debt service fund. The bonds were dated April 1, 2015 and paid interest on October 1 and April 1. The first of 10 equal annual principal payments was due on April 1, 2016. -What would be the amount of expenditures recorded by the debt service fund for the fiscal year ended December 31,2015?

If a sinking fund is required by creditors or law,the unexpended resources would be classified as Restricted Fund Balance.

Use the following to answer the next four questions: On April 1, 2015, the City of Southern Ponds issued $3,500,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $3,490,000 was used to construct the police station, which was completed before December 31, 2015, the end of the fiscal year. The remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2015, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $175,000 is due April 1, 2016. -What amount would be reported as debt service expenditures for 2016?

When a government acquires general fixed assets under a capital lease agreement,the asset should be recorded in the General Fund's fund basis financial statements:

Write yes or no in each box to indicate whether each property applies to the following funds:

Premiums generated from the issuance of bonds for a capital projects fund are generally transferred to the Debt Service Fund.

Which of the following fund(s)should be used if resources are provided by a donor with the stipulation that they be used for the benefit of the citizenry?

If taxes are levied specifically for payment of interest and principal on long-term debt,those taxes are:

Which of the following is not true regarding permanent funds?

Debt service funds are used to account for the payment of principal and interest of both general and enterprise related long-term debt of a state or local governmental unit.

A transfer from the General Fund to a debt service fund to make annual payments on principal and interest would be recorded in the debt service fund as a (an):