Question 1

On January 1, 2011, Wakefield City purchased $40,000 office supplies. During the year $35,000 of these supplies were used.
Required:
Record the journal entries for these transactions using the consumption method. (Disregard the encumbrance entries)

Accepted Answer

The answer of On January 1, 2011, Wakefield City purchased...

Question 2

The town council adopted an annual budget estimating general revenues of $2,000,000, approved expenditures of $1,700,000 and other financing for other funds of $130,000.
Required:
Record the journal entry to record the budget and identify the fund in which it is recorded.

Accepted Answer

The answer of The town council adopted an annual budget...

Question 3

The city of Kamen transferred $27,000 into a Pension Trust Fund. Of this amount, $19,000 was contributed by the city with the remainder coming from the employees.
Required:
For fund-based financial statements, prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

Accepted Answer

The answer of The city of Kamen transferred $27,000 into...

Question 4

On June 14, 2011, Fred City agreed to transfer cash of $52,000 from the General Fund to provide permanent financing for a municipal swimming pool that will be viewed as an Enterprise Fund. The cash was transferred on June 30.
Required:
(A) Prepare all the required journal entries and identify the fund in which each entry was recorded for the Fund-Based Financial Statements.
(B) Prepare all the required journal entries and identify the type of activity for the Government-Wide Financial Statements.

Accepted Answer

The answer of On June 14, 2011, Fred City agreed...

Question 5

On January 1, 2011, Wakefield City purchased $40,000 office supplies. During the year $35,000 of these supplies were used.
Required:
Record the journal entries for these transactions using the purchases method. (Disregard the encumbrance entries)

Accepted Answer

The answer of On January 1, 2011, Wakefield City purchased...

Question 6

The Town of Anthrop has recorded the receipt of a $10,000 grant to make its Town Hall handicapped-accessible. The town now spends $10,000 to make the Town Hall handicapped-accessible.
Required:
Prepare the journal entry (or entries), and identify the fund for recording, to record that the town spends $10,000 of a grant it received to make the Town Hall handicapped-accessible.

Accepted Answer

The answer of The Town of Anthrop has recorded the...

Question 7

On July 12, 2011, Fred City ordered a new computer at an anticipated cost of $114,400. The computer was received on July 16 with an actual cost of $116,220. Payment was subsequently made on August 15, 2011.
Required:
(A) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Fund-Based Financial Statements.
(B) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Government-Wide Financial Statements.

Accepted Answer

The answer of On July 12, 2011, Fred City ordered...

Question 8

Property taxes of 1,500,000 are levied for Miner County. The county expects that 5% will be uncollectible.
Required:
Prepare the required journal entry and identify the fund in which it is recorded.

Accepted Answer

The answer of Property taxes of 1,500,000 are levied for...

Question 9

A $5,000,000 bond is issued by Northern City to build a new hospital.
Required:
Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

Accepted Answer

The answer of A $5,000,000 bond is issued by Northern...

Question 10

On August 21, 2011, Fred City transferred $100,000 to the School System to cover repairs to a school building.
Required:
Prepare all the required journal entries and identify the fund in which each entry was recorded for the Fund-Based Financial Statements.

Accepted Answer

The answer of On August 21, 2011, Fred City transferred...

Question 11

Shell City transfers $100,000 from the General Fund to the Debt Service fund.
Required:
Prepare the required journal entries and identify the funds in which they are recorded.

Accepted Answer

The answer of Shell City transfers $100,000 from the General...

Question 12

A $910,000 bond was issued on October 1, 2011 to build a new road. The bonds carried a 6% interest rate and are due in 10 years.
Required:
(A) Prepare the required journal entry in the Capital Projects Fund on October 1 for the Fund-Based Financial Statements.
(B) Prepare the required journal entry for the Government-Wide Financial Statements.

Accepted Answer

The answer of A $910,000 bond was issued on October...

Question 13

Simple City has recorded the purchase order of two trucks for a total of $100,000.
Prepare the journal entries to reflect that the two trucks have been received with a voucher price of $105,000. This amount has been approved but not yet paid. Identify the fund in which the entries are recorded.

Accepted Answer

The answer of Simple City has recorded the purchase order...

Question 14

The Town of Anthrop receives a $10,000 grant to make the Town Hall handicapped-accessible.
Required:
Prepare the journal entry, and identify the fund in which it is recorded, to record the receipt of the grant.

Accepted Answer

The answer of The Town of Anthrop receives a $10,000...

Question 15

The city of Kamen collected $17,000 from parking meters that must be transferred to the county government.
Required:
For fund-based financial statements, prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

Accepted Answer

The answer of The city of Kamen collected $17,000 from...

Question 16

A new truck was ordered for the sanitation department at a cost of $122,200 on September 3, 2011.
Required:
(A) Prepare the required journal entry in the General Fund for the Fund-Based Financial Statements.
(B) Prepare the required journal entry for the Government-Wide Financial Statements.

Accepted Answer

The answer of A new truck was ordered for the...

Question 17

The school system had some booklets printed by a local print shop on September 22, 2011. The school system was charged $1,560 for the printing, but the bill is not due until October.
Required:
(A) Prepare the required journal entry in the General Fund for the Fund-Based Financial Statements.
(B) Prepare the required journal entry for the Government-Wide Financial Statements.

Accepted Answer

The answer of The school system had some booklets printed...

Question 18

Prepare the journal entry and identify the fund to record the purchase order of two trucks owned by Simple City for $100,000. Identify the fund in which the entry is recorded.

Accepted Answer

The answer of Prepare the journal entry and identify the...

Quiz 16: Accounting for State and Local Governments

On January 1, 2011, Wakefield City purchased $40,000 office supplies. During the year $35,000 of these supplies were used. Required: Record the journal entries for these transactions using the consumption method. (Disregard the encumbrance entries)

The town council adopted an annual budget estimating general revenues of $2,000,000, approved expenditures of $1,700,000 and other financing for other funds of $130,000. Required: Record the journal entry to record the budget and identify the fund in which it is recorded.

On January 1, 2011, Wakefield City purchased $40,000 office supplies. During the year $35,000 of these supplies were used. Required: Record the journal entries for these transactions using the purchases method. (Disregard the encumbrance entries)

Property taxes of 1,500,000 are levied for Miner County. The county expects that 5% will be uncollectible. Required: Prepare the required journal entry and identify the fund in which it is recorded.

A $5,000,000 bond is issued by Northern City to build a new hospital. Required: Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

On August 21, 2011, Fred City transferred $100,000 to the School System to cover repairs to a school building. Required: Prepare all the required journal entries and identify the fund in which each entry was recorded for the Fund-Based Financial Statements.

Shell City transfers $100,000 from the General Fund to the Debt Service fund. Required: Prepare the required journal entries and identify the funds in which they are recorded.

Simple City has recorded the purchase order of two trucks for a total of $100,000. Prepare the journal entries to reflect that the two trucks have been received with a voucher price of $105,000. This amount has been approved but not yet paid. Identify the fund in which the entries are recorded.

The Town of Anthrop receives a $10,000 grant to make the Town Hall handicapped-accessible. Required: Prepare the journal entry, and identify the fund in which it is recorded, to record the receipt of the grant.

The city of Kamen collected $17,000 from parking meters that must be transferred to the county government. Required: For fund-based financial statements, prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

A new truck was ordered for the sanitation department at a cost of $122,200 on September 3, 2011. Required: (A) Prepare the required journal entry in the General Fund for the Fund-Based Financial Statements. (B) Prepare the required journal entry for the Government-Wide Financial Statements.

Prepare the journal entry and identify the fund to record the purchase order of two trucks owned by Simple City for $100,000. Identify the fund in which the entry is recorded.