Major Fund Tests The City of Somerset has the following fund information: Required Apply the criteria specified in GASB 34 to determine which of these funds meets the major fund reporting criteria.

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Answer 1

Textbook Question

Chapter 18, Problem 18.22P

Major Fund Tests
The City of Somerset has the following fund information:

Chapter 18, Problem 18.22P, Major Fund Tests The City of Somerset has the following fund information: Required Apply the

Required
Apply the criteria specified in GASB 34 to determine which of these funds meets the major fund reporting criteria.

Expert Solution & Answer

To determine

Introduction: GASB statement 34 requires governmental agencies to furnish two financial statements, governmental statements of revenues, expenditures, and changes in fund balance, and the governmental fund balance sheet. The fund based governmental entities only report major funds, to determine major funds, 10 percent criteria is used which says total assets, liabilities, revenues, or expenditures of the individual fund must be at least 10 percent, and 5 percent test which says that the total assets, liabilities, revenues or expenditures of the individual fund must be at least 5 percent of the corresponding total for all governmental plus enterprise funds combined.

The major fund for reporting using criteria specified in GASB 34.

Explanation of Solution

10 percent criterion test

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	1.3	19,000	2	327,000	5.65	328,000	5.8
Library	450,000	21.3	38,000	3.99	460,000	7.94	418,000	7.39
Arena	28,000	1.33	16,000	1.68	41,000	0.71	55,800	0.99
Debt service	41,000	1.94	0	0	331,000	5.72	290,000	5.12
Permanent	246,000	11.65	0	0	11,000	0.19	18,000	0.32
Total	2,112,400	100	951,300	100	5,790,000	100	5,659,800	100

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Enterprise fund
Enterprise − Electric	2,640,000	66.1	1,800,700	62.1	289,000	47.8	245,000	45.1
Enterprise − water	1,355,000	33.9	1,100,000	37.9	329,000	53.2	298,000	54.9
Total	3,996,000	100	2,900,700	100	618,000	100	543,000	100

General fund is always major fund.
Funds percentage above 10 percent are major funds:

Capital project fund − library and permanent fund is above 10 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 10 percent test

5 percent test:

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	0.44	19,000	0.5	327,000	5	328,000	5
Library	450,000	7.37	38,000	0.99	460,000	7.18	418,000	6.74
Arena	28,000	0.45	16,000	0.4	41,000	0.6	55,800	0.9
Debt service	41,000	0.7	0	0	331,000	5.16	290,000	4.7
Permanent	246,000	4.03	0	0	11,000	0.17	18,000	0.29
Enterprise − Electric	2,640,000	43.22	1,800,700	46.7	289,000	4.51	245,000	3.95
Enterprise − water	1,355,000	22.2	1,100,000	28.6	329,000	5.13	298,000	4.8
Total	6,108,400	100	3852,000	100	6,408,000	100	6,202,800	100

General fund is always major fund.
Funds percentage above 5 percent are major funds:

Capital project fund − library and permanent fund is above 5 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 5 percent test

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Answer 2

Textbook Question

Chapter 18, Problem 18.22P

Major Fund Tests
The City of Somerset has the following fund information:

Chapter 18, Problem 18.22P, Major Fund Tests The City of Somerset has the following fund information: Required Apply the

Required
Apply the criteria specified in GASB 34 to determine which of these funds meets the major fund reporting criteria.

Expert Solution & Answer

To determine

Introduction: GASB statement 34 requires governmental agencies to furnish two financial statements, governmental statements of revenues, expenditures, and changes in fund balance, and the governmental fund balance sheet. The fund based governmental entities only report major funds, to determine major funds, 10 percent criteria is used which says total assets, liabilities, revenues, or expenditures of the individual fund must be at least 10 percent, and 5 percent test which says that the total assets, liabilities, revenues or expenditures of the individual fund must be at least 5 percent of the corresponding total for all governmental plus enterprise funds combined.

The major fund for reporting using criteria specified in GASB 34.

Explanation of Solution

10 percent criterion test

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	1.3	19,000	2	327,000	5.65	328,000	5.8
Library	450,000	21.3	38,000	3.99	460,000	7.94	418,000	7.39
Arena	28,000	1.33	16,000	1.68	41,000	0.71	55,800	0.99
Debt service	41,000	1.94	0	0	331,000	5.72	290,000	5.12
Permanent	246,000	11.65	0	0	11,000	0.19	18,000	0.32
Total	2,112,400	100	951,300	100	5,790,000	100	5,659,800	100

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Enterprise fund
Enterprise − Electric	2,640,000	66.1	1,800,700	62.1	289,000	47.8	245,000	45.1
Enterprise − water	1,355,000	33.9	1,100,000	37.9	329,000	53.2	298,000	54.9
Total	3,996,000	100	2,900,700	100	618,000	100	543,000	100

General fund is always major fund.
Funds percentage above 10 percent are major funds:

Capital project fund − library and permanent fund is above 10 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 10 percent test

5 percent test:

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	0.44	19,000	0.5	327,000	5	328,000	5
Library	450,000	7.37	38,000	0.99	460,000	7.18	418,000	6.74
Arena	28,000	0.45	16,000	0.4	41,000	0.6	55,800	0.9
Debt service	41,000	0.7	0	0	331,000	5.16	290,000	4.7
Permanent	246,000	4.03	0	0	11,000	0.17	18,000	0.29
Enterprise − Electric	2,640,000	43.22	1,800,700	46.7	289,000	4.51	245,000	3.95
Enterprise − water	1,355,000	22.2	1,100,000	28.6	329,000	5.13	298,000	4.8
Total	6,108,400	100	3852,000	100	6,408,000	100	6,202,800	100

General fund is always major fund.
Funds percentage above 5 percent are major funds:

Capital project fund − library and permanent fund is above 5 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 5 percent test

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Answer 3

Textbook Question

Chapter 18, Problem 18.22P

Major Fund Tests
The City of Somerset has the following fund information:

Chapter 18, Problem 18.22P, Major Fund Tests The City of Somerset has the following fund information: Required Apply the

Required
Apply the criteria specified in GASB 34 to determine which of these funds meets the major fund reporting criteria.

Expert Solution & Answer

To determine

Introduction: GASB statement 34 requires governmental agencies to furnish two financial statements, governmental statements of revenues, expenditures, and changes in fund balance, and the governmental fund balance sheet. The fund based governmental entities only report major funds, to determine major funds, 10 percent criteria is used which says total assets, liabilities, revenues, or expenditures of the individual fund must be at least 10 percent, and 5 percent test which says that the total assets, liabilities, revenues or expenditures of the individual fund must be at least 5 percent of the corresponding total for all governmental plus enterprise funds combined.

The major fund for reporting using criteria specified in GASB 34.

Explanation of Solution

10 percent criterion test

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	1.3	19,000	2	327,000	5.65	328,000	5.8
Library	450,000	21.3	38,000	3.99	460,000	7.94	418,000	7.39
Arena	28,000	1.33	16,000	1.68	41,000	0.71	55,800	0.99
Debt service	41,000	1.94	0	0	331,000	5.72	290,000	5.12
Permanent	246,000	11.65	0	0	11,000	0.19	18,000	0.32
Total	2,112,400	100	951,300	100	5,790,000	100	5,659,800	100

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Enterprise fund
Enterprise − Electric	2,640,000	66.1	1,800,700	62.1	289,000	47.8	245,000	45.1
Enterprise − water	1,355,000	33.9	1,100,000	37.9	329,000	53.2	298,000	54.9
Total	3,996,000	100	2,900,700	100	618,000	100	543,000	100

General fund is always major fund.
Funds percentage above 10 percent are major funds:

Capital project fund − library and permanent fund is above 10 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 10 percent test

5 percent test:

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	0.44	19,000	0.5	327,000	5	328,000	5
Library	450,000	7.37	38,000	0.99	460,000	7.18	418,000	6.74
Arena	28,000	0.45	16,000	0.4	41,000	0.6	55,800	0.9
Debt service	41,000	0.7	0	0	331,000	5.16	290,000	4.7
Permanent	246,000	4.03	0	0	11,000	0.17	18,000	0.29
Enterprise − Electric	2,640,000	43.22	1,800,700	46.7	289,000	4.51	245,000	3.95
Enterprise − water	1,355,000	22.2	1,100,000	28.6	329,000	5.13	298,000	4.8
Total	6,108,400	100	3852,000	100	6,408,000	100	6,202,800	100

General fund is always major fund.
Funds percentage above 5 percent are major funds:

Capital project fund − library and permanent fund is above 5 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 5 percent test

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Answer 4

Textbook Question

Chapter 18, Problem 18.22P

Major Fund Tests
The City of Somerset has the following fund information:

Chapter 18, Problem 18.22P, Major Fund Tests The City of Somerset has the following fund information: Required Apply the

Required
Apply the criteria specified in GASB 34 to determine which of these funds meets the major fund reporting criteria.

Expert Solution & Answer

To determine

Introduction: GASB statement 34 requires governmental agencies to furnish two financial statements, governmental statements of revenues, expenditures, and changes in fund balance, and the governmental fund balance sheet. The fund based governmental entities only report major funds, to determine major funds, 10 percent criteria is used which says total assets, liabilities, revenues, or expenditures of the individual fund must be at least 10 percent, and 5 percent test which says that the total assets, liabilities, revenues or expenditures of the individual fund must be at least 5 percent of the corresponding total for all governmental plus enterprise funds combined.

The major fund for reporting using criteria specified in GASB 34.

Explanation of Solution

10 percent criterion test

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	1.3	19,000	2	327,000	5.65	328,000	5.8
Library	450,000	21.3	38,000	3.99	460,000	7.94	418,000	7.39
Arena	28,000	1.33	16,000	1.68	41,000	0.71	55,800	0.99
Debt service	41,000	1.94	0	0	331,000	5.72	290,000	5.12
Permanent	246,000	11.65	0	0	11,000	0.19	18,000	0.32
Total	2,112,400	100	951,300	100	5,790,000	100	5,659,800	100

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Enterprise fund
Enterprise − Electric	2,640,000	66.1	1,800,700	62.1	289,000	47.8	245,000	45.1
Enterprise − water	1,355,000	33.9	1,100,000	37.9	329,000	53.2	298,000	54.9
Total	3,996,000	100	2,900,700	100	618,000	100	543,000	100

General fund is always major fund.
Funds percentage above 10 percent are major funds:

Capital project fund − library and permanent fund is above 10 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 10 percent test

5 percent test:

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	0.44	19,000	0.5	327,000	5	328,000	5
Library	450,000	7.37	38,000	0.99	460,000	7.18	418,000	6.74
Arena	28,000	0.45	16,000	0.4	41,000	0.6	55,800	0.9
Debt service	41,000	0.7	0	0	331,000	5.16	290,000	4.7
Permanent	246,000	4.03	0	0	11,000	0.17	18,000	0.29
Enterprise − Electric	2,640,000	43.22	1,800,700	46.7	289,000	4.51	245,000	3.95
Enterprise − water	1,355,000	22.2	1,100,000	28.6	329,000	5.13	298,000	4.8
Total	6,108,400	100	3852,000	100	6,408,000	100	6,202,800	100

General fund is always major fund.
Funds percentage above 5 percent are major funds:

Capital project fund − library and permanent fund is above 5 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 5 percent test

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Introduction: GASB statement 34 requires governmental agencies to furnish two financial statements, governmental statements of revenues, expenditures, and changes in fund balance, and the governmental fund balance sheet. The fund based governmental entities only report major funds, to determine major funds, 10 percent criteria is used which says total assets, liabilities, revenues, or expenditures of the individual fund must be at least 10 percent, and 5 percent test which says that the total assets, liabilities, revenues or expenditures of the individual fund must be at least 5 percent of the corresponding total for all governmental plus enterprise funds combined.

The major fund for reporting using criteria specified in GASB 34.

Explanation of Solution

10 percent criterion test

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	1.3	19,000	2	327,000	5.65	328,000	5.8
Library	450,000	21.3	38,000	3.99	460,000	7.94	418,000	7.39
Arena	28,000	1.33	16,000	1.68	41,000	0.71	55,800	0.99
Debt service	41,000	1.94	0	0	331,000	5.72	290,000	5.12
Permanent	246,000	11.65	0	0	11,000	0.19	18,000	0.32
Total	2,112,400	100	951,300	100	5,790,000	100	5,659,800	100

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Enterprise fund
Enterprise − Electric	2,640,000	66.1	1,800,700	62.1	289,000	47.8	245,000	45.1
Enterprise − water	1,355,000	33.9	1,100,000	37.9	329,000	53.2	298,000	54.9
Total	3,996,000	100	2,900,700	100	618,000	100	543,000	100

General fund is always major fund.
Funds percentage above 10 percent are major funds:

Capital project fund − library and permanent fund is above 10 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 10 percent test

5 percent test:

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	0.44	19,000	0.5	327,000	5	328,000	5
Library	450,000	7.37	38,000	0.99	460,000	7.18	418,000	6.74
Arena	28,000	0.45	16,000	0.4	41,000	0.6	55,800	0.9
Debt service	41,000	0.7	0	0	331,000	5.16	290,000	4.7
Permanent	246,000	4.03	0	0	11,000	0.17	18,000	0.29
Enterprise − Electric	2,640,000	43.22	1,800,700	46.7	289,000	4.51	245,000	3.95
Enterprise − water	1,355,000	22.2	1,100,000	28.6	329,000	5.13	298,000	4.8
Total	6,108,400	100	3852,000	100	6,408,000	100	6,202,800	100

General fund is always major fund.
Funds percentage above 5 percent are major funds:

Capital project fund − library and permanent fund is above 5 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 5 percent test

Answer 8

Expert Solution & Answer

To determine

Introduction: GASB statement 34 requires governmental agencies to furnish two financial statements, governmental statements of revenues, expenditures, and changes in fund balance, and the governmental fund balance sheet. The fund based governmental entities only report major funds, to determine major funds, 10 percent criteria is used which says total assets, liabilities, revenues, or expenditures of the individual fund must be at least 10 percent, and 5 percent test which says that the total assets, liabilities, revenues or expenditures of the individual fund must be at least 5 percent of the corresponding total for all governmental plus enterprise funds combined.

The major fund for reporting using criteria specified in GASB 34.

Explanation of Solution

10 percent criterion test

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	1.3	19,000	2	327,000	5.65	328,000	5.8
Library	450,000	21.3	38,000	3.99	460,000	7.94	418,000	7.39
Arena	28,000	1.33	16,000	1.68	41,000	0.71	55,800	0.99
Debt service	41,000	1.94	0	0	331,000	5.72	290,000	5.12
Permanent	246,000	11.65	0	0	11,000	0.19	18,000	0.32
Total	2,112,400	100	951,300	100	5,790,000	100	5,659,800	100

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Enterprise fund
Enterprise − Electric	2,640,000	66.1	1,800,700	62.1	289,000	47.8	245,000	45.1
Enterprise − water	1,355,000	33.9	1,100,000	37.9	329,000	53.2	298,000	54.9
Total	3,996,000	100	2,900,700	100	618,000	100	543,000	100

General fund is always major fund.
Funds percentage above 10 percent are major funds:

Capital project fund − library and permanent fund is above 10 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 10 percent test

5 percent test:

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	0.44	19,000	0.5	327,000	5	328,000	5
Library	450,000	7.37	38,000	0.99	460,000	7.18	418,000	6.74
Arena	28,000	0.45	16,000	0.4	41,000	0.6	55,800	0.9
Debt service	41,000	0.7	0	0	331,000	5.16	290,000	4.7
Permanent	246,000	4.03	0	0	11,000	0.17	18,000	0.29
Enterprise − Electric	2,640,000	43.22	1,800,700	46.7	289,000	4.51	245,000	3.95
Enterprise − water	1,355,000	22.2	1,100,000	28.6	329,000	5.13	298,000	4.8
Total	6,108,400	100	3852,000	100	6,408,000	100	6,202,800	100

General fund is always major fund.
Funds percentage above 5 percent are major funds:

Capital project fund − library and permanent fund is above 5 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 5 percent test

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Introduction: GASB statement 34 requires governmental agencies to furnish two financial statements, governmental statements of revenues, expenditures, and changes in fund balance, and the governmental fund balance sheet. The fund based governmental entities only report major funds, to determine major funds, 10 percent criteria is used which says total assets, liabilities, revenues, or expenditures of the individual fund must be at least 10 percent, and 5 percent test which says that the total assets, liabilities, revenues or expenditures of the individual fund must be at least 5 percent of the corresponding total for all governmental plus enterprise funds combined.

The major fund for reporting using criteria specified in GASB 34.

Answer 12

Explanation of Solution

10 percent criterion test

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	1.3	19,000	2	327,000	5.65	328,000	5.8
Library	450,000	21.3	38,000	3.99	460,000	7.94	418,000	7.39
Arena	28,000	1.33	16,000	1.68	41,000	0.71	55,800	0.99
Debt service	41,000	1.94	0	0	331,000	5.72	290,000	5.12
Permanent	246,000	11.65	0	0	11,000	0.19	18,000	0.32
Total	2,112,400	100	951,300	100	5,790,000	100	5,659,800	100

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Enterprise fund
Enterprise − Electric	2,640,000	66.1	1,800,700	62.1	289,000	47.8	245,000	45.1
Enterprise − water	1,355,000	33.9	1,100,000	37.9	329,000	53.2	298,000	54.9
Total	3,996,000	100	2,900,700	100	618,000	100	543,000	100

General fund is always major fund.
Funds percentage above 10 percent are major funds:

Capital project fund − library and permanent fund is above 10 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 10 percent test

5 percent test:

Funds	Assets $	%	Liabilities$	%	Revenues$	%	Expenditures$	%
Governmental fund
General fund	1,320,400		878,300		4,620,000		4,550,000
Special revenue	27,000	0.44	19,000	0.5	327,000	5	328,000	5
Library	450,000	7.37	38,000	0.99	460,000	7.18	418,000	6.74
Arena	28,000	0.45	16,000	0.4	41,000	0.6	55,800	0.9
Debt service	41,000	0.7	0	0	331,000	5.16	290,000	4.7
Permanent	246,000	4.03	0	0	11,000	0.17	18,000	0.29
Enterprise − Electric	2,640,000	43.22	1,800,700	46.7	289,000	4.51	245,000	3.95
Enterprise − water	1,355,000	22.2	1,100,000	28.6	329,000	5.13	298,000	4.8
Total	6,108,400	100	3852,000	100	6,408,000	100	6,202,800	100

General fund is always major fund.
Funds percentage above 5 percent are major funds:

Capital project fund − library and permanent fund is above 5 percent hence a major fund
Both enterprise funds, electric and water are major funds as both the funds qualify 5 percent test

Answer 13

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Major Fund Tests The City of Somerset has the following fund information: Required Apply the criteria specified in GASB 34 to determine which of these funds meets the major fund reporting criteria.

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