Module 4 Quiz Prep

10 Part 1 of 2 Required information [The following information applies to the questions displayed below.] The City of Lynnwood was recently incorporated and had the following transactions for the fiscal year ended December 31. 8. During the year, the internal service fund billed the city's general government function $15,700 for duplicating services and it billed the city's utility fund $8,100 for services. 9. The city council decided to build a city hall at an estimated cost of $5,000,000. To finance the construction, 6 percent bonds were sold at the face value of $5,000,000. A contract for $4,500,000 has been signed for the project; however, no expenditures have been incurred as of December 31. 10. The general government function issued a purchase order for $32,000 for computer equipment. When the equipment was received, a voucher for $31,900 was approved for payment and payment was made. Required a. For each transaction number, identify all of the fund and/or government-wide…

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Question 1 The City of Denton uses encumbrance accounting to control expenditures. It charges the cost of outstanding purchase commitments to expenditures in the year they are received, not in the year they are ordered. If the City had $7,000 of purchase commitments outstanding at the end of Year 1 and received those goods during Year 2 at a cost of $7,800, what would be the impact on total Fund Balance for Year 2? a. Total Fund Balance at the end of Year 2 would be $7,800 less than at the end of Year 1. b. Total Fund Balance at the end of Year 2 would be $800 less than at the end of Year 1. c. Total Fund Balance at the end of Year 2 would be $800 greater than at the end of Year 1. d. Total Fund Balance at the end of Year 2 would be same as it was at the end of Year 1. Question 2 To close Encumbrances at the end of the year which of the following entries should be made?   a. Debit Encumbrances; Credit Fund Balance.   b. Debit Reserve for Encumbrances; Credit…

Please answer question 1 [Para. 5-a-1]

8 Part 1 of 2 Skipped Required information [The following information applies to the questions displayed below.] The City of Lynnwood was recently incorporated and had the following transactions for the fiscal year ended December 31. 8. During the year, the internal service fund billed the city's general government function $19,200 for duplicating services and it billed the city's utility fund $11,600 for services. 9. The city council decided to build a city hall at an estimated cost of $5,070,000. To finance the construction, 5 percent bonds were sold at the face value of $5,070,000. A contract for $4,570,000 has been signed for the project; however, no expenditures have been incurred as of December 31. 10. The general government function issued a purchase order for $35,500 for computer equipment. When the equipment was received, a voucher for $32,600 was approved for payment and payment was made. 2. Required a. For each transaction number, identify all of the fund and/or…

5–3 General Capital Assets. Make all necessary entries in the appropriate governmentalfund general journal and the government-wide governmental activities generaljournal for each of the following transactions entered into by the City of Fordache.1. The city received a donation of land that is to be used by Parks and Recre-ation for a park. At the time of the donation, the land had a fair value of$5,200,000 and was recorded on the donor’s books at a historical cost of$4,500,000.2. The Public Works Department sold machinery with a historical cost of$35,100 and accumulated depreciation of $28,700 for $6,400. The machin-ery had originally been purchased with special revenue funds.3. A car was leased for the mayor’s use. Since the term of the lease exceeded75 percent of the useful life of the car, the lease was capitalized. The firstpayment was $550 and the present value of the remaining lease paymentswas $30,000.4. During the current year, a capital projects fund completed a new public…

Exercise 5-18 (Algo) General Capital Assets (LO 5-2, 5-4] Prepare journal entries for each of the following transactions entered into by the City of Loveland. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest whole dollar.) Fund / Governmental Activties Transaction General Journal Debit Credit 1. The city received a donation of land that is to be used by Parks and Recreation to develop a public park. At the time of the donation, the land had an acquisition value of $4,300,000 and was recorded on the donor's books at a historical cost of $3,600,000. 1 General Fund Governmental Activities 2. The Public Works Department sold machinery with a historical cost of $34,200 and accumulated depreciation of $28,250 for $5,525. The machinery had originally been purchased with special revenue funds. 2 General Fund Governmental Activities 3. A car was leased for the mayor's use. The first payment…

5–3 General Capital Assets. Make all necessary entries in the appropriate governmental fund general journal and the government-wide governmental activities general journal for each of the following transactions entered into by the City of Fordache. 1. The city received a donation of land that is to be used by Parks and Recre￾ation for a park. At the time of the donation, the land had a fair value of $5,200,000 and was recorded on the donor’s books at a historical cost of $4,500,000. 2. The Public Works Department sold machinery with a historical cost of $35,100 and accumulated depreciation of $28,700 for $6,400. The machin￾ery had originally been purchased with special revenue funds. 3. A car was leased for the mayor’s use. Since the term of the lease exceeded 75 percent of the useful life of the car, the lease was capitalized. The first payment was $550 and the present value of the remaining lease payments was $30,000. 4. During the current year, a capital projects fund…

Identification of activities with particular governmental-type funds Using only the governmental-type funds, indicate which would be used to record each of the following transactions and events.  GF     General Fund  SRF    Special Revenue Fund  DSF   Debt Service Fund  CPF   Capital Projects Fund PF Permanent Fund 1.The city paid a contractor who had completed a report on the potential for improving police deployment as a way to reduce the crime rate.  2.  The city retired some of its outstanding bonds, using money accumulated for that purpose.  3. The city received a grant from the state to build an addition to the city hall.  4. A federal grant was received to help pay for the cost of constructing the new city hall.

Ch5 5 Four new computers, for which the cost exceeded the city’s capitalization threshold, were purchased for use in the city clerk’s office using General Fund resources. Which of the following entries would be required to completely record this transaction? Multiple Choice General Journal Debit CreditGeneral Fund: Expenditures 8,000 Vouchers Payable 8,000 General Journal Debit CreditGovernmental Activities: Expenses 8,000 Vouchers Payable 8,000 General Journal Debit CreditGeneral Fund: Expenditures 8,000 Vouchers Payable 8,000 Governmental Activities: Expenses 8,000 Vouchers Payable 8,000 General Journal Debit CreditGeneral Fund: Expenditures 8,000 Vouchers Payable 8,000 Governmental Activities: Equipment 8,000 Vouchers Payable 8,000

Please answer question 5 [Para. 5-a-5]. I included all supporting information.

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A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should these transactions be recorded in an agency fund? Choose the correct.a. Never; the work is reported in the capital projects funds.b. Only if the city is secondarily liable for any debt incurred to finance construction costs.c. Only if the city is in no way liable for the costs of the construction.d. In all cases.

Problem 3 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 20X3. Image included Compensated absences are legally owed to general government workers. Required: Prepare a Statement of Revenues, Expenditures, and Other Changes in Fund Balances for the year ended December 31, 20X3.

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6 The City of Townsend's city council authorized the establishment of an internal service fund to provide human resource services to city departments. The following transactions took place in the inaugural month of Townsend's Human Resource internal service fund: 1. The General Fund transferred $100,000 to cover initial expenses. The transfer is not expected to be repaid. 2. The Human Resources Fund entered into a 2-year computer lease with an initial $5,000 payment. The present value of the remaining payments is $82,218. 3. Salaries and wages paid to employees totaled $15,000. 4. Office supplies were purchased on account for $2,500. 5. Billings totaling $3,000 were received from the enterprise fund for utility charges. 6. Billings to other departments for services provided to them were as follows: General Fund Special Revenue Fund. $16,000 4,700 7. Closing entries were prepared. Required a-1. Assume all expenses at the government-wide level are charged to the General Government…

Problem 5: Comparing the measurement focus and basis of accounting of governmental funds with the measurement focus and basis of accounting of proprietary funds The information below pertains to the Village of Brexitville for the year ended December 31, 2022. Purchased 10 HP printers at the beginning of 2022 for $11,000; the printers are expected to last 4 years and have a salvage value of $1,000; Paid $42,000 to the federal government representing the Village’s share of payroll taxes for FICA and Medicare; Paid $50,000 to retire bonds payable; paid interest on outstanding bonds of $1,000; Received a bill for $2,000 on January 2, 2023, from Peoples Gas for natural gas used to heat government facilities in November and December, 2022. Required: Compute total expenditures for the local government assuming transactions A, B, and D are recorded in the general fund, and transaction C is recorded in a debt service fund. Compute total expenses for the government assuming all transactions…

Question Two: Choose the best answer 1. Which of the following capital assets would not be depreciated? a) The city's streetlights. b) Purchased computer software. c) The partially completed city hall. d) The artwork owned and displayed in the city parks. 2. Goods for which a purchase order had been placed at an estimated cos were received at an actual cost of $985. The journal entry in the Gener: record the receipt of the goods will include a: a) Debit to Reserve for Encumbrances for $1,000. b) Credit to Vouchers Payable for $985. c) Debit to Expenditures for $985. d) All of the above are correct. W 直

Ch3 9.   The Encumbrances account is properly termed a   Multiple Choice   Long-term liability.   Reservation of unassigned fund balance.   Budgetary account.   Current liability if paid within a year; otherwise, long-term debt.   10.   When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to:   Multiple Choice   Encumbrances.   Equipment.   Expenditures.   Appropriations.

Question 8 When a city holds pension monies for city employees, the monies should be recorded in: O The general Fund. O A private purpose trust fund. A fiduciary Fund. An agency Fund. OA special Revenue Fund. @ 76 12 80 F3 #3 F4 4 MacBook Air % S 7 S

A city constructs a special assessment project (a sidewalk) for which it is secondarily liable. The city issues bonds of $90,000. It authorizes another $10,000 that is transferred out of the general fund. The sidewalk is built for $100,000. The citizens are billed for $90,000. They pay this amount and the debt is paid off. Where is the $100,000 expenditure for construction recorded?  Choose the correct.a. It is not recorded by the city.b. It is recorded in the agency fund.c. It is recorded in the general fund.d. It is recorded in the capital projects fund.

A capital projects fund would probably not be used for which of the following assets? A. Construction and installation of new shelving in the mayor's office. B, Replacing a bridge. C. Financing and construction of three new fire substations. D. Purchase and installation of an entity-wide integrated computer system.

A city acquires a new police car accounted for in the general fund. How should the city report the acquisition of the new police car in its governmental fund statement of revenues, expenditures, and changes in fund balances?a. Expenditureb. Noncurrent assetc. Expensed. Property, plant, and equipment

Revenue bonds to fund improvements to the town-owned electric utility $50 million，Conduit bonds issued to assist a fast‐food franchisee to construct a restaurant for $7 million, The amount that the city should report as an obligation in its government‐wide statement of net position and its proprietary funds balance sheet is A.) Government‐Wide $57 million, Proprietary Fund $57 million B.) Government‐Wide $50 million, Proprietary Fund $50 million C.) Government‐Wide $ 0, Proprietary Fund $ 0 D.) Government‐Wide $57 million , Proprietary Fund $

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The City of Kastle purchased a vehicle for the parks department. If the operations of the parks department are financed by general revenues, an asset would be recorded in which journal(s)? General Governmental Fund Activities A) B) Yes No No No No Yes Yes Yes Multiple Choice Choice A

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