Exam 11: Accounting for State and Local Governments, Part I

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.

The Town of Anthrop receives a $10,000 grant to make the Town Hall handicapped-accessible. Required: Prepare the journal entry, and identify the fund in which it is recorded, to record the receipt of the grant.

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

What are the two proprietary fund types?

The reporting of the fund balance of governmental funds will result in a maximum of ___________ categories:

Trapper City issued 30-year bonds for the purpose of building a new City Hall. The proceeds of the bonds are deposited in the General Fund. For the Fund Financial Statements, in what fund will Bonds Payable appear?

Simple City has recorded the purchase order of two trucks for a total of $100,000. Prepare the journal entries to reflect that the two trucks have been received with a voucher price of $105,000. This amount has been approved but not yet paid. Identify the fund in which the entries are recorded.

What are the five types of governmental funds?

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

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.

What is the definition of the term fund?

On June 14, 2013, 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.

The town council adopted an annual budget estimating general revenues of $2,000,000, approved expenditures of $1,700,000 and other financing for other funds of $130,000. Required: Record the journal entry to record the budget and identify the fund in which it is recorded.

A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the Fund Financial Statements?

Generally, annual budgets are recorded within the following funds:

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

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?