Exam 16: Accounting for State and Local Governments

On July 1, 2013, Fred City ordered $1,500 of office supplies. They were to be paid for out of the General Fund. Required: (A.) What journal entry was required for the Fund Financial Statements? (B.) What journal entry was required for the Government-Wide Statements?

Which group of governmental financial statements reports all revenues and all costs of providing services each year?

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?

What are the two groups of financial statements mandated by GASB Statement No. 34? For each group, what are the names of the individual statements that must be produced?

On July 12, 2013, Fred City ordered a new computer at an anticipated cost of $114,400. The computer was received on July 16 with an actual cost of $116,220. Payment was subsequently made on August 15, 2013. Required: (A.) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Fund Financial Statements. (B.) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Government-Wide Financial Statements.

What account is debited in the general fund when equipment is received by a governmental entity?

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?

Which of the following statements is true about Fund Balance classifications for the governmental funds?

Property taxes of 1,500,000 are levied for Miner County. The county expects that 5% will be uncollectible. Required: Prepare the required journal entry and identify the fund in which it is recorded.

Under modified accrual accounting, when are expenditures recorded?

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

On January 1, 2013, Wakefield City purchased $40,000 office supplies. During the year $35,000 of these supplies were used. Required: Record the journal entries for these transactions using the consumption method. (Disregard the encumbrance entries.)

The City of Kamen collected $17,000 from parking meters that must be transferred to the county government. Required: For fund financial statements, prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

What are the broad types or classifications of funds for a governmental entity such as a city?

The school system had some booklets printed by a local print shop on September 22, 2013. The school system was charged $1,560 for the printing, but the bill is not due until October. Required: (A.) Prepare the required journal entry in the General Fund for the Fund Financial Statements. (B.) Prepare the required journal entry for the Government-Wide Financial Statements.

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

A $910,000 bond was issued on October 1, 2013 to build a new road. The bonds carried a 6% interest rate and are due in 10 years. Required: (A.) Prepare the required journal entry in the Capital Projects Fund on October 1 for the Fund Financial Statements. (B.) Prepare the required journal entry for the Government-Wide Financial Statements.

Which type of fund is not included in the Government-Wide Financial Statements?

Prepare the journal entry and identify the fund to record the purchase order of two trucks owned by Simple City for $100,000. Identify the fund in which the entry is recorded.

Shell City transfers $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.