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Study Resources (Accounting)

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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9) The following information was taken from the accounts and records of the Helping Hands Foundation, a private, not-for-profit organization classified as a VHWO. All balances are as of June 30, 2011, unless otherwise noted. Unrestricted Support - Contributions$2,000,000 Unrestricted Support - Membership Dues640,000 Unrestricted Revenues - Investment Income80,000 Temporarily restricted gain on sale.
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9) Static City started a department to provide copy, printing and mailing services for all departments and agencies of the city. During the fiscal year from July 1, 2010 through June 30, 2011, the copy services department had the following transactions: 1.Paper and toner inventory was purchased for $58,000, on account. 2.The paper.
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3) Southtown Community Hospital (SCH) shows the following balances on its trial balance at June 30, 2011, their fiscal year end. SCH is a not-for-profit, nongovernmental hospital. $260,000 cash was spent on equipment from donations restricted for that purpose. Debits: Administrative services expense200,000 Contractual allowances1,200,000 Depreciation expense700,000 Employee discounts300,000 General services expense900,000 Loss on sale of fixed.
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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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4) Wilhelman University, a not-for-profit, nongovernmental university, had the following transactions in 2011. 1.Tuition bills were sent amounting to $4,000,000, with tuition waivers granted on that amount of $200,000. 2.State funding was received in the amount of $2,000,000. 3.The bookstore and cafeteria sales amounted to $1,600,000, and their cost of sales was $1,500,000..
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6) Carousel Clothes is a voluntary health and welfare organization that provides gently-used second-hand clothes to those in need. They had the following transactions in 2011. 1.Cash gifts were received in the amount of $60,000, of which $13,000 had been pledged in the prior year. 2.Pledges made in the current year but.
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Exercises 1) Will Wealth made three charitable donations in 2011. Each was for $500,000, however they were made to three different organizations as follows: 1.Will donated to a local voluntary health and welfare organization (VHWO), and indicated that the funds could be used as the VHO wanted. 2.Will donated to a local private,.
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16) Prepare journal entries to record the following grant-related transactions of the municipal swimming pool, which is funded primarily by membership fees. 1.Received an operating grant in cash from the state for $200,000, to be used for life-saving and first-aid training. 2.Incurred and paid qualifying expenses on the state grant program by.
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15) A private, not-for-profit university received donations of $1,000,000 cash in 2011 that were restricted to certain research projects on sustainability, with an emphasis on reducing the campus waste. The university incurred and paid $450,000 of expenses on this research in 2011. In 2011, an alumnus contributed a $700,000 endowment for.
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5) Albatross University, a not-for-profit, nongovernmental university, had the following transactions in 2011. 1.Tuition bills were sent amounting to $8,000,000, with 70% collected before the end of the fiscal year; tuition waivers were granted on the total amount of $400,000, and $220,000 was expected to be uncollectible. 2.Cafeteria sales, all cash, were.
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10) Coats for Kids is a private, not-for-profit organization that provides free coats for children in the suburbs of a large city. Coats for Kids had the following transactions in 2011. 1.Unrestricted cash gifts that were received last year, but designated for use in the current year, totaled $50,000. The cash.
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11) Prepare journal entries in an Internal Service Fund of Union County to record each of the following transactions. 1.Purchased equipment on September 1, 2011 by paying $25,000 down and borrowing $100,000 on a 6%, 2-year note. 2.In 2011, billed General Fund $620,000 for services provided. Billings to the Enterprise Fund totaled.
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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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15) Prepare journal entries to record the following grant-related transactions of an Enterprise Fund. 1.Received an operating grant in cash from the state, $2,500,000. 2.Incurred and paid qualifying operating expenses on the state grant program, $1,600,000. 3.Received a federal grant to finance construction of a plant, $4,500,000 (cash received in advance). 4.Incurred and paid.
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17) A private, not-for-profit university received donations of $800,000 in 2011 that were restricted to capital improvements of the football stadium. The university spent $670,000 on capital improvements for the stadium in 2011 and recorded depreciation of $130,000. In 2011, an alumnus contributed a $1,500,000 endowment for football scholarships with all.
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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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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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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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11) Marshfield Hospital is a private, not-for-profit hospital. The following transactions occurred: 1.Unrestricted cash gifts that were received last year, but designated for use in the current year, totaled $180,000. The cash gifts were used in the current year in accordance with restrictions. 2.Unrestricted pledges of $800,000 were received. Ten percent of.
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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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19) Record the following transactions for Porter Hospital, a private, nonprofit hospital: 1.Gross patient services revenues: $25,000,000. Billed to patients. 2.Included in the above revenues are: charity services, $500,000; contractual adjustments, $11,000,000; and estimated uncollectible amounts, $250,000. 3.Purchased equipment by issuing a 5-year note for $200,000. 4.Received cash donations restricted for a capital building.
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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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Multiple Choice Questions 1) Which of the following is not true? A) A not-for-profit entity operates for purposes other than to provide goods or services at a profit. B) A not-for-profit entity may be governmental or non-governmental. C) A not-for-profit entity may possess ownership interests like a corporation. D) A not-for-profit entity receives resources from.
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8) The following information was taken from the accounts and records of the Community Chest Foundation, a private, not-for-profit VHWO organization. All balances are as of December 31, 2011, unless otherwise noted. Unrestricted Support - Contributions$6,500,000 Unrestricted Support - Membership Dues700,000 Unrestricted Revenues - Investment Income63,000 Temporarily restricted gain on sale of investments20,000 Expenses -.
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13) Journalize the following utility transactions in the Hazzard County Enterprise Fund: 1.The utility sold $4,000,000 of 6.5% revenue bonds at 98 on July 1, 2011 (an interest payment date). The bond proceeds are to be used for new plant construction and the issue will mature in 20 years. Interest is.
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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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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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10) Journalize the following utility transactions in the Quest County Enterprise Fund: 1.Billings to external customers $1,600,000; billings to Quest County governmental funds $130,000. 2.Collected refundable deposits from new customers $10,000. 3.Collected 95% of all billings by fiscal year-end. 4.Refunded $4,000 in deposits to former customers. 5.Unbilled services to outside customers at year-end $14,000. .
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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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14) Prepare journal entries to record the following transactions for a private, not-for-profit university. 1.Tuition and fees assessed total $10,000,000, 80% of which was collected by year-end; tuition scholarships were granted for $1,300,000, and $650,000 was expected to be uncollectible. 2.Revenues collected from sales and services by the university bookstore were $1,450,000. 3.Salaries.
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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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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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16) The following information is available about the operations for a private, not-for-profit university. 1.The university sold $20,000,000 of 5% bonds to finance the construction of a new building for the business school. The bonds were sold on January 1 and pay interest on December 31 of each year. The bonds.
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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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11) Voluntary health and welfare organizations classify fund-raising costs as A) costs of services sold. B) program services. C) auxiliary expenses. D) supporting services. 12) Voluntary health and welfare organizations A) may not have paid executives or staff. B) are governed by separate GASB statements. C) use fund accounting, following the rules for proprietary fund reporting. D) are supported.
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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 $25,000,000 cash to the Enterprise Fund. The note is not interest-bearing. 2.The municipal golf course and tennis club purchased land and constructed the facilities which totaled expenditures of.
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7) An adjusted trial balance is provided below for the Dade County copy services department at June 30, 2011. Cash$ 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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7) The Trasque Hospital is a nongovernmental, not-for-profit hospital. During 2011, they had the following transactions. 1.Trasque's standard charges for services rendered amounted to $550,000. Contractual adjustments on those amounts with third-party payors amounted to $230,000. Bad debts on the remaining balance are estimated to be 10%. 2.The hospital received a cash.
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13) Childrens Hospital is a private, not-for-profit hospital. The following information is available about the operations. 1.Gross patient services charges totaled $6,400,000. 2.Included in the above revenues are: charity services, $210,000; contractual adjustments, $2,400,000; and courtesy allowances, $37,000. 3.Received a donation of marketable securities with a fair value of $165,000 for the purchase.
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18) The four cash flow categories required in an Enterprise Fund's Statement of Cash Flows are listed below and assigned a letter code. A)Cash flows from operating activities B)Cash flows from noncapital financing activities C)Cash flows from capital and related financing activities D)Cash flows from investing activities Required: Use the correct letter code to indicate where.
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12) General Hospital is a private, not-for-profit hospital. The following information is available about the operations. 1.Gross patient services charges totaled $3,700,000. 2.Included in the above revenues are: charity services, $360,000; contractual adjustments, $1,200,000; courtesy allowances, $20,000; and estimated uncollectible amounts, $250,000. 3.Premium fees receipts were $110,000. 4.Purchased $75,000 of hospital supplies on account,.
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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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