Exam 8: Government-Wide Statements: Capital Assets; Long-Term Debt

The reconciliations required to be presented on the face of the governmental fund financial statements or in separate schedule immediately after the fund financial statements include:

When preparing the government-wide statements, worksheet entries are booked to provide the trial balance amounts used to prepare the financial statements.

Governments must report infrastructure assets in the government-wide statement of net position.

Governmental fund-basis statements reflect modified accrual accounting and must be adjusted to the accrual basis when preparing the government-wide statements.

The difference between assets and liabilities in the government-wide statements is called fund balance.

A local government issued bonds and recorded the event by debiting Cash and crediting Other Financing Source - Proceeds of Bonds and Other Financing Source - Premium on Bonds. What is the worksheet entry when preparing the government-wide statements?

When preparing government-wide financial statements, the modified accrual based governments funds are adjusted. List 4 items involving capital assets that are likely to require adjustments.

A government reported expenditures for infrastructure as follows: $18 million for improvements and additions; $20 million to extend the life of existing infrastructure; $17 million for general repairs. The cost of its infrastructure, excluding land, is $750 million, and the infrastructure has an estimated life of 50 years, on average. Which of the following would be the reported expense in millions) under each of the following options?

A government reported an other financing source in the amount of $900,000 related to the sale of land in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. The land had a cost of $400,000. The amount that would be reported in the government-wide Statement of Activities would be:

Fiduciary activities are included in the government-wide statements.

What would be the appropriate journal entry to adjust to the accrual basis of accounting for depreciation on general capital assets related to prior years?

In its Statement of Net Position, a government reported: assets of $110 million, including $30 million in capital assets net), and liabilities of $40 million, including long-term debt of $15 million, all related to capital asset acquisition. The government also reported $10 million of net assets were restricted for payment of debt service. The government's Unrestricted Net Position would be reported as:

Which of the following situations would be unlikely to result in the recognition of an asset impairment?

Governmental fund-basis statements are prepared using the________, and must be converted to the ________ to be incorporated in the government-wide statements.

When preparing government-wide statements, depreciation expense must be eliminated.

A government's Statement of Revenues, Expenditures, and Changes in Fund Balances reported proceeds of bonds in the amount of $2,000,000. It also reported expenditures for bond principal in the amount of $500,000. The last interest payment was on the last day of the fiscal year. The reconciliation from the governmental funds changes in fund balances to the governmental activities change in Net Position would reflect aan):

The following entries were in the governmental funds. $12 / 31 / 2016$ Capital Projects Fund Cash 2,800,000 Other Financing Sources - Proceeds sales of General Obligation Bonds 2,800,000 Other Financing Sources -Bond Premium 28,000 to reflect issuance of 10 year general obligation bond) 12/31/2017 \begin{array}{llcc} \text { Debt Service Fund } & \\ \text { Expenditures: Bond Principal } &280,000\\ \text {Expenditures: Bond Interest } &168,000\\ \text { Cash } &&448,000\\ \text { to reflect payment of 1 / 10^{\text {th }} principal and \( 1^{\text {st }} \) year's interest)} &\\\end{array} Required: Part A. What is the worksheet entry required to adjust beginning or Position) in the 12/31/2017 government-wide financial statements for long term debt? Part B. What are the worksheet entries to adjust for current year activity in long-term debt for the year ended 12/31/2017? Assume interest for the year is due on 12/31 and the bond premium is amortized on the straight line basis.

An example of a program revenue in the government-wide Statement of Activities would be parks and recreation fees.

The difference between assets and liabilities in the government-wide statements is called_________.

Which of the following is true regarding the government-wide Statement of Net Position?