ACCT GOV.+NFP ENTITIES LOOSELEAF W/CONN.
18th Edition
ISBN: 9781260949766
Author: RECK
Publisher: MCG
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Textbook Question
Chapter 2, Problem 19EP
Matching Funds with Transactions. (LO2-3) Choose the letter of the sample transaction in the right-hand column that would most likely be reported in the fund listed in the left-hand column.
| Fund | Example |
| 1. Custodial | a. Construction of public buildings. |
| 2. Capital projects | b. Costs of a central purchasing and warehouse function. |
| 3. Debt service | c. Gifts in which the principal must be invested and preserved, while the investment earnings must be used to provide scholarships to children of police officers who died in the line of duty. |
| 4. Enterprise | d. Administrative expenses of the city manager’s office. |
| 5. General | e. Assets held for external government participants in the government’s investment pool for the purpose of earning investment income. |
| 6. Internal service | f. Gifts in which the principal must be invested and preserved but the investment earnings can be used for public purposes. |
| 7. Investment trust | g. Costs of operating a municipal swimming pool. |
| 8. Pension (and other employee benefit) trust | h. Taxes collected on behalf of another government unit. |
| 9. Permanent | i. Assets held in trust to provide retirement benefits for municipal workers. |
| 10. Private-purpose trust | j. Principal and interest payments on general long-term debt. |
| 11. Special revenue | k. Grant revenues restricted for particular operating purposes. |
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This problem has two parts, part a and part b. Answer each part separately using the same information. Do not mix answers to a and b; they are answered separately.
Problem a: Using the list of transactions below, provide all necessary journal entries for the Fund statements. You also need to identify which funds are involved in the transaction, such as the Capital projects fund, Debt service fund Special revenue fund, or Permanent fund.
Problem b: Using the same list of transactions, provide all necessary journal entries for the Governmental Activities section in the Government-wide statements. Write “no entry” if no entry is needed.
Dunellen City, covered in this problem, issues a $10,000,000 bond at face value. The cash is to be used for the construction of a fire station.
Previously undesignated cash of $100,000 from the General Fund is set aside to begin paying the bonds issued in item (1).
A state cash grant of $300,000 is received that must be spent in the future for…
Identify the letter that best describes the accounting and reporting by the following funds and account groups:1. Enterprise fund fixed assets.2. Capital projects fund.3. General fixed assets.4. Infrastructure fixed assets.5. Enterprise fund cash.6. General fund.7. Agency fund cash.8. General long-term debt.9. Special revenue fund.10. Debt service fund.a. Accounted for in a fiduciary fund.b. Accounted for in a proprietary fund.c. Accounted for in a quasi-endowment fund.d. Accounted for in a self-balancing account group and included in financial statements.e. Accounted for in a special assessment fund.f. Accounts for major construction activities.g. Accounts for property tax revenues.h. Accounts for payment of interest and principal on tax-supported debt.i. Accounts for revenues from earmarked sources to finance designated activities.j. Reporting is optional.
Which of the following is an example of an interactivity transaction?a. Money is transferred from the general fund to the debt service fund.b. Money is transferred from the capital projects fund to the general fund.c. Money is transferred from the special revenue fund to the debt service fund.d. Money is transferred from the general fund to the enterprise fund.
Chapter 2 Solutions
ACCT GOV.+NFP ENTITIES LOOSELEAF W/CONN.
Ch. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Explain the modified accrual basis of accounting....Ch. 2 - Prob. 5QCh. 2 - What is the primary reason government entities use...Ch. 2 - What is meant by the terms deferred outflows of...Ch. 2 - How do expenses and expenditures differ?Ch. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Accounting and Reporting Principles. (LO2-3) The...Ch. 2 - Prob. 12CCh. 2 - Which of the following statements is true...Ch. 2 - Prob. 16.2EPCh. 2 - Prob. 16.3EPCh. 2 - The measurement focus and basis of accounting that...Ch. 2 - Which of the following amounts that are identified...Ch. 2 - Prob. 16.6EPCh. 2 - Prob. 16.7EPCh. 2 - Under the modified accrual basis of accounting a....Ch. 2 - Prob. 16.9EPCh. 2 - A certain city reports the following year-end...Ch. 2 - Prob. 16.11EPCh. 2 - Prob. 16.12EPCh. 2 - Prob. 16.13EPCh. 2 - Prob. 16.14EPCh. 2 - Which of the following fund(s) will generally be...Ch. 2 - Prob. 17EPCh. 2 - Prob. 18EPCh. 2 - Matching Funds with Transactions. (LO2-3) Choose...Ch. 2 - Fund Balance Classifications. (LO2-3) Section A...Ch. 2 - Prob. 21EPCh. 2 - Major Funds. (LO2-4) At the end of the fiscal...
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