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Study Resources (Accounting)

13) The following are transactions for the city of Greenville. a.Issued $50,000 10-year bonds. b.Used $30,000 of the cash to buy a truck. c.Sold the truck that was replaced which had cost $28,000, for $2,000. The old truck was fully depreciated. Residual value is zero. d.Computed depreciation on the new truck for the year.
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15) Aqua Corporation filed a petition under Chapter 7 of the bankruptcy act in January, 2011. On February 28, the following information was presented regarding Aqua's financial status. Book ValuesFair Values Cash$50,000$50,000 A/R - net100,00090,000 Inventories80,00060,000 Fixed Assets - net200,000230,000 Priority Claims80,000 A/P100,000 N/P110,000 Mortgage Payable200,000 The Note Payable is secured by Accounts Receivable, and the Mortgage Payable is secured.
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7) The City of Electri entered the following transactions during 2011: 1.Borrowed $120,000 for a six-month term, to be paid upon receipt of property tax payments which were previously billed. 2.Used the funds borrowed to purchase a new fire truck. The truck is expected to have a 15-year useful life, and a.
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8) For each of the following events or transactions, identify the fund or funds that will be affected. 1.A city government provides electricity services to residents for a fee. 2.A printing shop was established to handle the printing needs of a county government. 3.A philanthropist donates $1 million for zoo maintenance, only earnings.
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Multiple Choice Questions 1) What basis of accounting is used by proprietary funds? A) Modified accrual accounting B) Accrual accounting C) Cash basis accounting D) Fair value accounting 2) Enterprise funds are accounted for in a manner similar to A) internal service funds. B) capital project funds. C) special revenue funds. D) debt service funds. 3) On January 1, 2011, the.
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7) The following are transactions for the city of Franklin. a.Borrowed $20,000 by issuing a two-year note. b.Purchased equipment for $6,000 cash. c.Licenses for $700 were billed on account. d.Accrued employee salary costs of $7,000. e.Depreciation expense on equipment for year, $1,000. Required: Analyze the above transactions by using the accounting equation for a proprietary fund. .
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16) Address the following situations separately. 1.For the budgetary year beginning July 1, 2011, Coastal City expected the following cash flow resources: Property taxes, licenses, and fees$3,000,000 Proceeds of debt issue1,000,000 Interfund transfers to debt service fund750,000 In the budgetary entry, what amount did Coastal City record for estimated revenues? 2.During the fiscal year ended June.
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6) The following are transactions for the city of Franklin. a.Borrowed $20,000 by issuing a two-year note. b.Purchased equipment for $6,000 cash. c.Licenses for $700 were billed on account. d.Accrued employee salary costs of $7,000. e.Depreciation expense on equipment for year, $1,000. Required: Analyze the above transactions by using the accounting equation for a governmental fund. .
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2) Jefferson County had the following transactions in 2012. 1.$27,000 in membership fees was collected at the municipal pool. 2.A county collects $130,000 in sales taxes on behalf of the cities within its boundaries. 3.A $500,000 bond offering was issued at 102 to fund the construction of a new city hall. The premium.
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6) Thoroughgood County has a municipal golf course and tennis club which is funded by the membership fees it charges. The club also has 6% bonds outstanding amounting to $20,000,000 on which it pays interest semi-annually. The club had the following transactions. 1.An addition to the golf clubhouse was added for.
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17) Oceana Corporation is being liquidated under Chapter 7 of the Bankruptcy Act. The trustee has determined that the unsecured claims will receive $.35 on the dollar. Loans-R-Us holds a $1,000,000 mortgage note receivable from Oceana that is secured by building and equipment with a $1,200,000 book value and a.
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18) The unadjusted trial balance for the general fund of the City of Nineva at June 30, 2011 is as follows: Debits Accounts receivable$40,000 Cash75,000 Due from agency fund25,000 Encumbrances60,000 Estimated revenues975,000 Expenditures750,000 Taxes receivable250,000 Credits Allowance for doubtful accounts5,000 Allowance for uncollectible taxes50,000 Appropriations785,000 Due to trust fund40,000 Fund balance-unassigned30,000 Reserve for encumbrances60,000 Revenues990,000 Taxes received in advance15,000 Vouchers payable200,000 Supplies on hand at June 30, 2011 totaled.
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15) Middlefield County incurred the following transactions during 2011: 1.The county authorized a new general obligation bond issue of $5 million par to construct an office building with a contract price of $4,975,000. The bonds were issued for $4,980,000. 2.The county levied real property taxes of $10,000,000. Eighty-five percent of the net.
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5) The following transactions relate to a municipal golf course and tennis club, financed with debt secured by membership fees. 1.The General Fund loaned $25,000,000 cash to the Enterprise Fund. The note is not interest-bearing. 2.The municipal golf course and tennis club purchased land and constructed the facilities which totaled expenditures of.
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Exercises 1) Match each of the following fund types to one of the following three fund categories as indicated. Each fund category may be used more than once. A.Governmental Fund B.Proprietary Fund C.Fiduciary Fund _____1.Debt Service Fund _____2.Internal Service Fund _____3.Agency Fund _____4.General Fund _____5.Permanent Fund _____6.Enterprise Fund _____7.Capital Projects Fund _____8.Trust Fund _____9.Special Revenue Fund _____10.Pension Fund .
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5) Bounty County had the following transactions in 2011. 1.The budget for the county was approved, showing estimated revenues of $320,000 from local income taxes, and total estimated expenditures of $316,000. 2.Tax bills were mailed amounting to $326,000, which are due in 60 days. All but 2% was expected to be collectible. 3.Taxes.
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12) The general fund trial balance for Lakeview City held the following balances at September 30, 2011, just before closing entries were made: Due from other funds$8,000 Fund balance - unassigned50,000 Estimated revenues180,000 Revenues177,000 Appropriations176,000 Expenditures - current year169,000 Expenditures - prior year16,000 Other financing sources - transfer in from Capital Projects Fund62,000 Required: Prepare the necessary closing entries for.
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17) The following information regarding the fiscal year ended September 30, 2011, was drawn from the accounts and records of the Mayberry County general fund: Revenues and other asset inflows: Taxes$12,000,000 Licenses and permits2,500,000 Intergovernmental revenues1,000,000 Capital lease for fixed asset1,200,000 Receipt of cash from terminated fund1,800,000 Expenditures and other asset outflows: General government expenditures7,500,000 Public safety expenditures2,000,000 Judicial system.
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Multiple Choice Questions 1) When a capital lease is used to lease fixed assets for the general government, the governmental fund acquiring the fixed assets debits ________ at the ________. A) expenditures; future value of the minimum lease payments B) fixed assets; future value of the minimum lease payments C) expenditures, present value of.
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7) An adjusted trial balance is provided below for the Dade County copy services department at June 30, 2011. Cash$ 21,000 Due from Enterprise Fund6,000 Due from Debt Service Fund2,000 Supplies inventory5,000 Supplies used3,000 Equipment32,000 Salary expense25,000 Utility expense9,000 Depreciation expense6,000 Operating transfer to General Fund   4,000  $113,000 Accumulated depreciation $ 24,000 Accounts payable2,000 Advance from General Fund (not for capital assets)10,000 Capital Contribution from General.
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4) The following are transactions for the city of Springfield. a.Borrowed $20,000 by issuing a three-month, 5% note. b.Paid $4,000 for equipment. c.Services for $1,000 were billed and collected. d.Year-end accrual of 3 months interest on note in (a). Required: Analyze the above transactions by using the accounting equation for a governmental fund. .
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Exercises 1) Match the following fund balance descriptions for a General Fund with the proper classification for a fund balance. Each classification may be used more than once. A.Nonspendable Fund Balance B.Restricted Fund Balance C.Committed Fund Balance D.Assigned Fund Balance E.Unassigned Fund Balance _____1. Amounts can only be spent for the specific purposes determined by a formal.
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19) The unadjusted trial balance for the general fund of the City of Jordan at June 30, 2011 is as follows: Debits Accounts receivable$90,000 Cash110,000 Due from agency fund19,000 Encumbrances18,000 Estimated revenues1,250,000 Expenditures1,090,000 Taxes receivable175,000 Credits Allowance for doubtful accounts15,000 Allowance for uncollectible taxes35,000 Appropriations1,180,000 Due to internal service fund51,000 Fund balance - unassigned52,000 Reserve for encumbrances18,000 Revenues1,130,000 Taxes received in advance22,000 Vouchers payable249,000 Supplies on hand at June.
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Exercises 1) The City's municipal golf course had the following transactions. 1.Received a beautification(operating) grant from the state for $600,000. Received cash of $600,000. 2.Incurred and paid qualifying expenses under the state grant program in (1) above of $280,000. 3.Incurred and paid construction costs on an uncompleted clubhouse for $1,200,000. 4.Received $1,000,000 cash from a.
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19) Hilfmir Corporation filed for Chapter 11 bankruptcy on January 1, 2011. A summary of their financial status is shown below on June 30, 2011, at the date of the approved reorganization, along with the fair value of their assets. Per BooksFair Value Cash$134,000$134,000 A/R - net20,00020,000 Inventory32,00040,000 Plant Assets - net114,000106,000 Patent  80,0000 $380,000 A/P$60,000 Wages Payable20,000 Prepetition liab.250,000 Common Stock140,000 Deficit (90,000) $380,000 Under.
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3) Willborough County had the following transactions in 2012. 1.A central motor pool was established with a $200,000 nonreciprocal transfer from the General Fund. 2.The water and sewer authority, which provides services to residents for a fee, issued a bond offering at $750,000 par. Bonds proceeds are restricted to renovating the treatment.
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Multiple Choice Questions 1) Which pronouncements have the highest level of authority for state and local governments? A) Financial Accounting Standards Board Statements B) GASB Statements C) Consensus Positions of GASB Emerging Issues Task Force D) GASB Technical Bulletins 2) The key focus of government fund accounting concerns A) capital expenditures. B) intergovernmental transfers from the general fund. C).
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11) The proper sequence of events is A) purchase order, appropriation, encumbrance, expenditure. B) purchase order, encumbrance, expenditure, appropriation. C) appropriation, encumbrance, purchase order, expenditure. D) appropriation, purchase order, encumbrance, expenditure. 12) Governments must record a liability for uncollected taxes instead of revenues for uncollected taxes if the taxes are going to be collected A) 30.
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11) At December 31, 2011, an Enterprise Fund has the following adjusted accounts outstanding: Insurance Expense$2,000 Depreciation Expense3,000 Supplies Expense10,000 Salaries Expense100,000 Service Revenues123,000 When preparing the closing entry for the temporary accounts at December 31, 2011, the Enterprise Fund's accountant will A) credit Retained Earnings $8,000. B) credit Net Cash, $8,000. C) credit Net Assets, Unrestricted $8,000. D) credit.
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14) Gargantuan Bank has loaned money in two separate loans to Little Company, which is now in Chapter 7 bankruptcy. Little Company has the following assets and liabilities, stated at fair value in liquidation. Assets pledged with secured creditors$190,000 Assets pledged with partially secured creditors70,000 Other assets30,000 Secured debt to Gargantuan130,000 Partially secured debt to.
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14) Peking County incurred the following transactions during 2011: 1.Marketable securities were donated to support the county's bike and nature trails. The donor acquired the securities for $35,000 ten years earlier; however, their current market value was $200,000. The donor specified that all income from the securities be used for the.
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6) Old West City had the following transactions in fiscal 2011. Assume that all expenditures were properly appropriated in the fiscal 2011 budget. 1.A six-month loan was made to the special revenue fund from the general fund amounting to $28,000. 2.A purchase order for landscaping maintenance services was issued in the amount.
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13) The trial balance for the General Fund for Golden City held the following balances at June 30, 2011, just before closing entries were made: Due from other funds$2,700 Fund balance - unassigned51,000 Estimated revenues208,000 Revenues198,900 Appropriations196,500 Expenditures - current year193,800 Expenditures - prior year4,500 Other Financing Sources - Transfer from Debt Service Fund6,000 Required: Prepare the necessary closing entries. .
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11) The following are transactions for the city of Clinton. a.Borrowed $100,000 by issuing a one-year, 5% note, three months before year-end. b.Accrued interest at year end, but did not pay the interest at year end. c.Charges for services rendered of $2,500 were billed and collected immediately. d.Incurred salary costs of $5,000, unpaid. Required: Analyze the.
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4) A pre-closing trial balance included the following account balances for Simpli City: Due from other funds$ 3,500 Fund balance - unassigned14,000 Estimated revenues20,000 Revenues22,000 Appropriations18,000 Expenditures - current year19,000 Expenditures - prior year1,500 Other Financing Source - Nonreciprocal transfer in1,000 Required: Prepare the necessary closing entries for the General Fund. .
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16) Match the following definitions to the appropriate government accounting terms (numbered below). A.Legally separate organization for which primary government is financially accountable B.The use of governmental fund working capital C.Appropriation for a specific time period D.Governmental and Proprietary fund revenues and expenses presented using full accrual accounting E.Approved or authorized expenditures F.Revenues recognized when available.
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11) Prepare journal entries to record the following grant-related transactions for a municipality special revenue fund. 1.Special Revenue Fund awarded an operating grant from the state, $2,500,000 (cash will be received after qualified expenditures are made). 2.Special Revenue Fund received funds of $1,600,000, temporarily transferred from the General Fund. 3.Incurred qualifying expenditures on.
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15) Using the revenue types shown below, match each of the revenue sources to a revenue type. Each revenue type may be used more than once. A.Derived Tax Revenues B.Imposed Nonexchange Revenues C.Government-Mandated Nonexchange Transactions D.Voluntary Nonexchange Transactions _____1. Corporate income tax _____2. Sales taxes _____3. Liquor taxes _____4. Fines and penalties paid to a government entity _____5. Cigarette.
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2) Goodwill County had the following transactions for their General Fund in the first month of their fiscal 2012 year, which ends June 30, 2012. 1.The budget was approved, with $1,200,000 expected from property taxes, and another $5,000,000 expected from sales taxes. The budget showed these funds were expected to be.
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5) The following are transactions for the city of Springfield. a.Borrowed $20,000 by issuing a three-month, 5% note. b.Paid $4,000 for equipment. c.Services for $1,000 were billed and collected. d.Year-end accrual of 3 months interest on note in (a). Required: Analyze the above transactions by using the accounting equation for a proprietary fund. .
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