Exam 17: Accounting for State and Local Governments

For government-wide financial statements, what account is credited when a piece of equipment is leased on a capital lease?

How is the Statement of Cash Flows for Proprietary Funds similar and dissimilar to a Statement of Cash Flows for a for-profit business?

Which item is not included on the government-wide Statement of Activities?

What three criteria must be met before a governmental unit can elect to not capitalize and therefore report a work of art or historical treasure as an asset?

Which statement is false regarding the government-wide Statement of Net Assets?

What are the three broad sections of a state or local government's CAFR?

A five-year lease is signed by the City of Wachovia for equipment with a seven-year life. The asset will be returned to the lessor at the end of the lease. The present value of the lease is $20,000, and annual payments of $5,411.41 are payable beginning on the date the lease is signed. The interest portion of the second payment is $1,604.75. The equipment is to be used in City Hall and was purchased from appropriated funds of the General Fund. What entry should be made for the government-wide financial statements one year from the date the lease is signed?

Marie Todd works for the City of Rochester and volunteered to work the New Years Eve holiday in December, 2010. In exchange for working the holiday, the city will grant her 2 vacation days compensated at $500 per day. Marie decided to take these vacation days during January, 2011. Assuming that Marie works in an activity reported within the General fund, for Fund financial statements, what are the journal entries to record these events?

For the purpose of government-wide financial statements, the cost of cleaning up a government-owned landfill and closing the landfill

The City of Kamen maintains a collection of paintings of a former citizen in its City Hall building. During the year, one painting was purchased by the city for $2,000 at an auction using appropriated funds in the General Fund. Also during the year, a donation of a painting valued at $3,000 was made to the city. Required: Prepare the journal entry/entries for the two transactions for the purposes of preparing the fund financial statements.

The Town of Portsmouth has at the beginning of the year a $213,000 Net Asset balance, and a $52,000 Fund Balance. The following information relates to the activities within the Town of Portsmouth for the year of 2011. Prepare a Statement of Activities

GASB Codification Section 2200.106-107 makes which of the following statements regarding Management's Discussion and Analysis?

A local government's basic financial statements would include a statement of cash flows for all

What information is required in the introductory section of a state or local government's CAFR?

The Town of Conway opened a solid waste landfill in 2001 that is now filled to capacity. The city initially anticipated closure costs of $2 million. These costs were not expected to be incurred until the landfill is closed. What is the final journal entry to record these costs assuming the estimated $2 million closure costs were properly recorded and the landfill is accounted for in an enterprise fund?

Which of the following is a financial statement of a proprietary fund?

What are the three broad sections of a state or local government's CAFR?

The Town of Wakefield opened a solid waste landfill in 2010 that was at 20% capacity on December 31, 2010 and at 50% capacity on December 31, 2011. The city initially anticipated closure costs of $2.3 million but in 2011 revised the estimate of the closure costs to be $2.7 million. None of these costs will be incurred until the landfill is scheduled to be closed. What is the journal entry that should be recorded on December 31, 2011 for Government-wide Financial Statements?

Jones College, a public institution of higher education, must prepare financial statements

The parking garage and parking lots owned by the City of Danton reported the following balances for 2011: Required: What amount of net revenue (or expense) should be reported by the fund that was used to account for parking operations assuming the preparation of government-wide financial statements?