Exam 16: Accounting for State and Local Governments, Part I

Holloway City issues bonds in the amount of $700,000 to finance the construction of a sidewalk in a specific neighborhood.Repayment of the bonds will be derived from a special assessment on the owners in the neighborhood.The government accepts legal obligation for the construction of the sidewalk.Total interest on the bonds will total $35,000 and will be repaid at the time of repayment of the bonds. Required: Prepare the journal entries to record each of the following in preparation for (A) the government-wide financial statements and (B) the governmental fund financial statements.For the governmental fund financial statements, include the fund type in which the entry is recorded.Prepare all entries for (A) and all entries for (B) separately. Journal entries to record: 1) Issuance of the bonds 2) Payment to the contractor 3) The special assessment by the city on the neighborhood residents 4) The assessment collection by the city 5) Payment of the debt on the special assessment bonds

When should property taxes be recognized under modified accrual accounting?

Bay City received a federal grant to provide health care services to low income mothers and children.When should the revenues be recognized?

Which group of financial statements is prepared using the "modified accrual accounting" approach?

What assets would be included in the accounting records of a city's general fund?

When a city collects admission fees from citizens who use the public swimming pool, the money should be recorded in

Annual budgets must be recorded within:

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

For what is a special revenue fund used to account?

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be recorded in?

Fiduciary funds are

The school system had some brochures printed by a local printing service on September 22, 2018.The school system received an invoice showing an amount of $1,560 for the printing, but the bill is not due until October 15, 2018. Required: (A) Prepare the required journal entry in the general fund for the governmental fund financial statements. (B) Prepare the required journal entry for the government-wide financial statements.

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

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

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

For each of the following transactions, select the area of accounting records in which an entry will be recorded for governmental fund financial statements and for government-wide financial statements. (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.

What is the purpose of government-wide financial statements?

The Trumbull County legislature voted to set aside $500,000 to have new street signs produced for county roads.. Required: For governmental fund financial statements, prepare the journal entry for the adjustment to the fund balance of the general fund.

Shell City makes a transfer of $100,000 from the General fund to the Debt service fund. Required: Prepare the required journal entries and identify the funds in which they are recorded.

For determining revenue recognition, eligibility requirements for government-mandated nonexchange transactions and voluntary nonexchange transactions are categorized into four general classifications including all of the following except: