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Question: On January 1, 2017, the first day


On January 1, 2017, the first day of its fiscal year, Carter City received notification that a federal grant in the amount of $560,000 was approved. The grant was restricted for the payment of wages to teenagers for summer employment. The terms of the grant permitted reimbursement only after qualified expenditures have been made; the grant could be used over a two-year period. The following data pertain to operations of the SUMMER EMPLOYMENT GRANT FUND, a special revenue fund of Carter City, during the year ended December 31, 2017. Show entries in general journal form to record the following events and transactions in the accounts of the Summer Employment Grant Fund:
1. The budget was recorded. It provided for Estimated Revenues for the year in the amount of $280,000, and for Appropriations in the amount of $280,000.
2. A temporary loan of $280,000 was received from the General Fund.
3. During the year, teenagers earned and were paid $270,000 under terms of the Summer Employment program. An additional $8,000 is accrued as payable on December 31. Recognize the receivable and revenue (include the $8,000 of wages payable).
4. Each month a properly documented request for reimbursement was sent to the federal government; checks for $274,000 were received.
5. $250,000 was repaid to the General Fund.
6. Necessary closing entries were made.


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> What are the required financial statements for a pension trust fund? What are the required supplementary information schedules?

> The following is a Statement of Cash Flows for the risk management internal service fund of the City of Wrightville. An inexperienced accountant prepared the statement using the FASB format rather than the format required by GASB. All long-term debt was

> Accounting and financial reporting for state and local governments use, in different places, either the economic resources measurement focus and the accrual basis of accounting or the current financial resources measurement focus and the modified accrual

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> The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year: During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility F

> Using the information provided in exercise 6–4, prepare the reconciliation of operating income to net cash provided by operating activities that would appear at the bottom of the December 31 Statement of Cash Flows. Recall that the beginning balance of a

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> Why might it be desirable to operate enterprise funds at a profit?

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> The Town of Thomaston has a Solid Waste Landfill Enterprise Fund with the following trial balance as of January 1, 2017, the first day of the fiscal year. During the year, the following transactions and events occurred: 1. Citizens and trash companies

> The City of Evansville operated a summer camp program for at-risk youth. Businesses and nonprofit organizations sponsor one or more youth by paying the registration fee for program participants. The following Schedule of Cash Receipts and Disbursements s

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> Describe the “hierarchy of GAAP” for state and local governments.

> The Village of Burksville, which has a fiscal year July 1 to June 30, sold $2,000,000 in 5 percent tax-supported bonds at par to construct an addition to its police station. The bonds were dated and issued on July 1, 2016. Interest is payable semiannuall

> The Village of Hawksbill issued $4,000,000 in 5 percent general obligation, tax-supported bonds on July 1, 2016, at 101. A fiscal agent is not used. Resources for principal and interest payments are to come from the General Fund. Interest payment dates a

> a. Armstrong County established a County Office Building Construction Fund to account for a project that was expected to take less than one year to complete. The County’s fiscal year ends on June 30. 1. On July 1, 2016, bonds were sold at par in the amo

> A citizen group raised funds to establish an endowment for the Eastville City Library. Under the terms of the trust agreement, the principal must be maintained, but the earnings of the fund are to be used to purchase database and periodical subscriptions

> The citizens of Spencer County approved the issuance of $2,000,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the cour

> A government has outstanding bonds payable. Interest is payable on a date other than the fiscal year-end. What is the appropriate method of accounting for interest accruals by debt service funds?

> What are the major sources of funds for capital project and debt service funds, and how are the sources classified in the Statement of Revenues, Expenditures, and Changes in Fund Balance?

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> The following transactions relate to Newport City’s special revenue fund. 1. In 2017, Newport City created a special revenue fund to help fund the 911 emergency call center. The center is to be funded through a legally restricted tax on cellular phones.

> What is the definition of a government as agreed upon by the FASB and GASB?

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> Rural County is an agricultural community located hundreds of miles from any metropolitan center. The County established a Television Reception Improvement Fund to serve the public interest by constructing and operating television translator stations. TV

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> Using the information from Exercise 14–6, prepare a schedule showing the status of the appropriation at the end of the first quarter. Data from Exercise 14-6: Assume a federal agency has the following events: 1. Receives a warrant from the Treasury n

> Distinguish between private and public sector organization.

> What bodies are responsible for establishing accounting standards for the federal government and its agencies?

> What are the required financial statements of a federal agency?

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> How should rainy day funds be reported?

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> The town council of Riverside estimated revenues for 2017 to be $685,000 from property taxes and $165,000 from business licenses. The appropriations budget from the council was as follows: General government…………...$370,000 Parks and recreation……………..11

> Following are transactions and events of the General Fund of the City of Springfield for the fiscal year ended December 31, 2017. 1. Estimated revenues (legally budgeted) Property taxes………&aci

> The Budgetary Comparison Schedule for the City of Vienna appears below. Several items of information are missing (denoted with “?”). Required: a. Determine the missing amounts. b. During the year, the City made a

> Appearing below is the subsidiary ledger for the public safety department of the City of Boone. After the first month of the year, five entries have been made to the ledger. Describe the most likely event that led to each of the postings (items 1&acirc

> The following General Fund information is available for the preparation of the financial statements for the city of Eastern Shores for the year ended September 30, 2017: Revenues: Property taxes………………………………..…$27,020

> The following information is available for the preparation of the governmentwide financial statements for the city of Northern Pines for the year ended June 30, 2017: Expenses: General government………………………………………………………. $ 9,700,000 Pu

> The City of Grafton’s records reflected the following budget and actual data for the General Fund for the fiscal year ended June 30, 2017. 1. Estimated revenues: Taxes (Property)……………………………$3,213,000 Licenses and permits…………………………. 790,000 Intergovernm

> Describe the net position classification appearing on the government-wide Statement of Net Position.

> Describe how the cash flow statement of an enterprise fund differs in format from the cash flow statements of private sector organizations such as commercial businesses.

> Describe the test for determining whether a governmental fund is a major fund. Describe the test for determining whether an enterprise fund is a major fund.

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> With regard to GASB rules for the financial reporting entity, answer the following: a. Define the financial reporting entity. b. Define and give an example of a primary government. c. Define and give an example of a component unit. d. Define and des

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> Assume the Federal Interstate Commission began the fiscal year with the following account balances: 1. Congress passed a spending bill providing $16,000,000 to fund the agency’s operations for the year. 2. During the first quarter th

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> The 2012 financial statements of the Internal Revenue Service are available at: http://www.gao.gov/products/GAO-16-146 Use these to answer the following questions: a. Statement of Net Cost 1. What are the IRS’s two largest programs based on net cost?

> The 2015 financial statements of the U.S. government are available at: https://www.fiscal.treasury.gov/fsreports/rpt/finrep/fr/fr_index.htm Use these to answer the following questions: a. Statement of Net Cost 1. What are the three largest government

> What are the required financial statements of the U.S. government?

2.99

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