Exam 16: Accounting for State and Local Governments

On January 1, 2011, 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 purchases method. (Disregard the encumbrance entries.)

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.

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.

The board of commissioners of the city of Jarmaine adopted a General Fund budget for the year ending June 30, 2011, which indicated revenues of $1,300,000, bond proceeds of $520,000, appropriations of $1,170,000, and operating transfers out of $390,000. Required: If this budget was formally integrated into the accounting records used to produce the Fund Financial Statements, what was the required journal entry at the beginning of the year?

For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.

Revenue from property taxes should be recorded in the General Fund

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?

Special Revenue funds are

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.

Governmental funds are

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

In governmental accounting, what term is used for a decrease in financial resources?

What is the purpose of government-wide financial statements?

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?

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

What is the purpose of fund financial statements?

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

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

Fiduciary funds are

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.