Exam 8: The Governmental Fund Accounting Cycle--Fiduciary Funds

Which financial statements are prepared for an Agency Fund?

(Preparation of Pension Trust Fund schedule of funding progress) Based on the following data elements (not all of which are relevant to this problem)calculate (a)the funded ratio and (b)the unfunded actuarial accrued liability as a percentage of covered payroll for Elisa County's schedule of funding progress at December 31,2013.

Under which of the following circumstances will a government maintain a Pension Trust Fund?

When a donor makes a gift that is accounted for in a Private Purpose Trust Fund,which account should be credited?

What is the distinction between Private Purpose Trust Funds and Permanent Funds?

On what basis are investments valued in the financial statements of a Pension Trust Fund?

(Journal entries for Private Purpose Trust Fund) Towry School District accepts donations that are used to provide awards to graduating seniors.Record the following transactions in the Towry Private Purpose Trust Fund - Awards Fund.Also,prepare a statement of changes in fiduciary net position for the Fund for the year ended December 31,2013.This is the first year of operation for the Towry Private Purpose Trust Fund - Awards Fund. a.Hannah Banana,noted philanthropist,donates marketable securities worth $600,000 to the District,stipulating that all earnings on the securities be used for awards to graduates. b.The District receives dividends on the securities in the amount of $15,000. c.The District makes various awards to graduating seniors in the amount of $20,000. d.When the District prepares financial statements at the end of the year,the marketable securities have a fair value of $590,000.

Bevo County levies a property tax of $10 million. Of this amount, $6 million pertains to the activities of Bevo County's General Fund, while the other $4 million pertains to and will be remitted to the 10 villages within the County. The County anticipates that it will collect the entire $10 million that has been levied. -If Bevo County prepares an Agency Fund statement of fiduciary net position before it collects the property taxes,how much should it report as property taxes receivable?

Which of the following is not a fiduciary fund?

(Journal entries for an Agency Fund) A state collects sales taxes both for itself and for counties that have elected to "piggy-back" their taxes on the state tax.The state takes several weeks to process returns and determine how much each participating government should receive,so tax collections are temporarily invested.Resulting investment income is distributed to the state to defray processing costs. Prepare entries to record these transactions in the Agency Fund. a.The state collects sales taxes totaling $7,000,000 for itself and participating counties. b.The entire $7,000,000 is temporarily invested. c.The state determines that $4,800,000 of the tax collections belong to the state and that the remaining $2,200,000 should be distributed to the counties. d.The investments are immediately liquidated and $7,003,500 is received in cash. e.Tax collections and the investment income are forwarded to the state and the counties.

A Pension Trust Fund prepares two financial statements and two supplementary schedules.Where does the obligation (calculated by the actuary)for the total benefits earned by employees and retirees,as of a specific point in time,appear?

Based on the GASB's proposed new pension accounting standard,the net pension liability is:

Which of the following type of pension plans results in all the employers participating in the plan being liable for the accumulated liabilities of the plan?

Which of the following is not a characteristic of a defined benefit pension plan?

Wadsworth County maintains an investment pool in which it invests funds both for Wadsworth County and for all legally separate school districts in the county.When it reports assets in the Investment Trust Fund's statement of fiduciary net position,whose assets should be reported?

What can you learn from the "funded ratio" in the financial report of a Pension Trust Fund?

During its fiscal year,a Pension Trust Fund buys 1,000 shares of stock,for which it pays $33,000.At year end,the stock has a fair value of $28,000.How should this fact be reported in the Trust Fund's financial statements?

Which of the following statements is true regarding an agent multi-employer pension plan?

Which of the following resources should be accounted for in a Private Purpose Trust Fund?

Empire State collects personal income taxes both for its own activities and for cities in the state that have elected to "piggy-back" their own income taxes on top of the state taxes.As a fiduciary,the state temporarily invests all tax receipts pending determination of amounts to remit to the cities.The total investment income received by the state is $300,000,of which $100,000 will be sent to the cities.How much of the investment income should be recognized as revenue in the state's Agency Fund?