Exam 4: Accounting for the General and Special Revenue Funds

When establishing funds,governments should never attempt to minimize the number of special revenue and other funds,instead using functional classification to record transaction detail.

Which of the following is correct with respect to accounting for supplies inventories in a governmental fund?

The following items were included in the City of Wilson's General Fund expenditures for the year ended June 30,2015: How much should be classified as capital assets in Wilson's General Fund balance sheet at June 30,2015?

What is the different accounting treatment with respect to supplies inventory using the Consumption versus the Purchases method?

Under the modified accrual basis of accounting,GASB standards for property tax revenue recognition provide that revenue should not be recognized for property taxes collected:

Which of the following accounts of a governmental unit's General Fund is credited to close it at the end of the fiscal year?

A common use of special revenue funds is to account for (noncapital)intergovernmental grants when federal or state governments provide resources to local governments

A local government was awarded a federal grant in the amount of $950,000 to provide for a summer youth employment program for young people.The grant was a reimbursement grant,and a notification of the grant award was received on Apri1 30,2015.The local government expended the resources as follows: •June 2015: $400,000; •July 2015: $300,000; •August 2015: $250,000. The federal government sent the funds in the month following the expenditure.The local government would recognize revenues for the fiscal year ended June 30,2015 in which amount?

The following information was available for the General Fund of the City of Thomasville for the Year Ended December 31,2015: (a)Revenues for the year included property taxes in the amount of $6,612,000,fines and forfeits in the amount of $ 700,000,and miscellaneous in the amount of $400,000. (b)Expenditures from current appropriations included: general government,$4,847,000; public safety,$1,924,000; culture and recreation,812,000. (c)In addition to (b)above,expenditures related to prior year appropriations (encumbered last year)amounted to $40,000 (public safety).Encumbrances issued this year but not filled amounted to $60,000 (general government). (d)A transfer was made from the General Fund to a debt service fund in the amount of $500,000.A transfer was made from an enterprise fund to the General Fund in the amount of $450,000. (e)A sale of park land was made during the year,which was considered infrequent but not unusual and under the control of management.The proceeds amounted to $126,000,and the land had a basis of $90,000 reported in the government-wide Statement of Net Position the year before. (f)Beginning balances included Fund Balance in the amount of $222,000. Required: Prepare a Statement of Revenues,Expenditures,and Changes in Fund Balances for the General Fund for the City of Thomasville for the Year Ended December 31,2015.

Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2015. Use modified accrual accounting. (a)The legal budget for the year provided for $5,000,000 of estimated revenues and $4,960,000 appropriations. (b)Assume there are $ 210,000 of purchase orders outstanding at the end of last year and that these will be honored in the current year. Prepare the entries to re-establish the encumbrance. (c)Property taxes were levied in the amount of $3,300,000. It is estimated that 2 percent of the taxes will never be collected. (d)Purchase orders were issued for equipment and supplies in the amount of $4,000,000. (e)Supplies,relating to all of the prior year purchase orders ($210,000),were received along with invoices amounting to $207,000. (f)Collections of current property taxes amounted to $2,950,000. The uncollected taxes recorded as delinquent. (g)It was estimated that $210,000 in property taxes would be collected in the first 60 days of 2015 and that $160,000 would be collected in later periods.

Which of the following is not likely to be recorded in a special revenue fund?

When establishing funds,governments should attempt to have a large number of special revenue and other funds to provide the user with maximum detail to understand the transactions.

After closing entries,a special revenue fund's Fund Balance account represents the net amount of resources available for future appropriation

The Town of Little River expects to collect $90,000 in sales tax from the state government within 30 days of the end of fiscal year 2015 for retail sales taking place in fiscal year 2015. What entry,if any,would Little River make at the end of 2015?

Expenditures for claims and judgments and landfill post-closure care costs of governmental funds should be recognized to the extent that the liabilities are going to be paid with available resources.

When closing the General Fund and Special Revenue Funds of a state or local governmental unit,the balance of the operating statement accounts and the balances of the budgetary accounts are closed

The journal entry to record the prior year's deferred Inflows: property taxes (those expected to be collected more than 60 days beyond year-end)as revenue in the current year would include:

In February,X City ordered $550,000 of supplies.On March 17^th it received all of the ordered supplies and an invoice of $551,000.Which of the following would be recorded upon receipt of the supplies and invoice?

Interfund Transfers are flows of cash or other assets that:

A donor pledged $200,000 to the fund raising drive of a local government to assist its police officers in obtaining the latest technology. The pledge was made on July 16,2014,but was conditioned on the government raising an additional $200,000 from other donors. By the fiscal year-end of June 30,2015,the local government had raised only $5,000 from other donors. What entry would be made for the initial pledge by the local government during the year ended June 30,2015?