Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 6, Problem 22EP
Debt Service Fund
Required
Using information provided by the trial balance, answer the following.
- a. Assuming the budget was not amended, what was the budgetary
journal entry recorded at the beginning of the fiscal year? - b. What is the budgetary fund balance?
- c. Did the debt service fund pay debt obligations related to lease agreements? Explain.
- d. Did the debt service fund perform a debt refunding? Explain.
- e. Prepare a statement of revenues, expenditures, and changes in fund balances for the debt service fund for the year ended June 30.
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The unadjusted trial balance for the General Fund of the City of Allensville at June 30, 2019 is as follows:
Debits
Accounts Receivable $40,000
Cash 75,000
Due from Agency Fund 25,000
Encumbrances 60,000
Estimated Revenues 975,000
Expenditures 750,000
Taxes Receivable 250,000
$2,175,000
Credits
Allowance for Doubtful Accounts $ 5,000
Allowance for Uncollectible Taxes 50,000
Appropriations 785,000
Due to a Utility Fund 40,000
Unassigned Fund Balance (160,000)
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Armstrong County established a COuty Office Building Construction Fund to account for a project that was exoected to take less then one year to complete. The County's fiscal year ends in June 30.
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The City of Castleton’s General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year:
Debits
Credits
Cash
$
476,000
Taxes Receivable—Delinquent
601,000
Allowance for Uncollectible Delinquent Taxes
$
189,120
Interest and Penalties Receivable
28,080
Allowance for Uncollectible Interest and Penalties
12,960
Inventory of Supplies
17,900
Vouchers Payable
166,500
Due to Federal Government
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Deferred Inflows of Resources—Unavailable Revenues
427,000
Fund Balance—Nonspendable—Inventory of Supplies
17,900
Fund Balance—Unassigned
232,010
$
1,122,980
$
1,122,980
Prepare a General Fund balance sheet as of June 30, 2020.
Chapter 6 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 6 - Prob. 1QCh. 6 - What disclosures about long-term liabilities are...Ch. 6 - Prob. 3QCh. 6 - Prob. 4QCh. 6 - Although the most common type of general long-term...Ch. 6 - What is overlapping debt? Why would a citizen care...Ch. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - How are debt issuance costs accounted for at the...Ch. 6 - Under what circumstances might a government...
Ch. 6 - Prob. 11CCh. 6 - A citizens group in your state has placed an...Ch. 6 - A county government and a legally separate...Ch. 6 - Prob. 14CCh. 6 - Evaluating Legal Debt Margins. (LO6-2) Youll be...Ch. 6 - Prob. 17.1EPCh. 6 - Proceeds from bonds issued to construct a new city...Ch. 6 - The liability for long-term debt issued to finance...Ch. 6 - Which one of the following statements regarding...Ch. 6 - Prob. 17.5EPCh. 6 - On March 2, 2020, 20-year, 6 percent, general...Ch. 6 - Prob. 17.7EPCh. 6 - Prob. 17.8EPCh. 6 - The liability for special assessment bonds for...Ch. 6 - Total general long-term indebtedness subject to...Ch. 6 - Payment of general obligation bond interest would...Ch. 6 - Debt issuance costs a. Include legal and...Ch. 6 - If bonds are sold at a premium: a. The premium is...Ch. 6 - Prob. 17.14EPCh. 6 - Prob. 17.15EPCh. 6 - Prob. 18EPCh. 6 - Budgeted and Actual Debt Service Transactions....Ch. 6 - Lease Agreement. (LO6-5) McCormick County agreed...Ch. 6 - Legal Debt Margin and Direct and Overlapping Debt....Ch. 6 - Debt Service Fund Trial Balance. (LO6-5) Following...Ch. 6 - Prob. 23EPCh. 6 - Term Bond Debt Service Fund Transactions. (LO6-5)...Ch. 6 - Prob. 25EP
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