ACCT 567 WEEK 3
Question 1 Question TCO A Which of the following items are considered Required Supplementary Information (RSI)?
Student Answer: Management- Discussion and Analysis
Budgetary Comparison Schedule
Schedule of Risk Management Activities
All of the above
Instructor Explanation: Chapters 1 and 2
Points Received: 5 of 5
Comments:
Question 2. Question : (TCO B) Expenditures are generally recorded and fund liabilities are recognized under which of the following?
Student Answer: When goods and services are received, but only if resources are available in the fund.
When purchases orders are issued, regardless of whether or not resources are available in the fund.
When goods and services are received, regardless of whether or not resources are available in the fund.
When the invoices are paid.
Instructor Explanation: Chapters 2 and 4
Points Received: 5 of 5
Comments:
Question 3. Question : (TCO C) The County Commission of Hunter County adopted its General Fund budget for the year ending June 30, comprising of estimated revenues of $3,750,000 and appropriations of $3,150,000. Hunter County utilizes the budgetary accounts required by GASB standards. The budgeted excess of estimated revenues over appropriations will be recorded as
Student Answer: a credit to Surplus Revenues, $600,000.
a debit to Estimated Excess Revenues, $600,000.
a credit to Budgetary Fund Balance, $600,000.
a memorandum entry only.
Instructor Explanation: Chapter 3
Points Received: 5 of 5
Comments:
Question 4. Question : (TCO D) Which of the following would be considered an internal exchange transaction that has taken place during a fiscal year?
Student Answer: The General Fund transfers $139,000 to the Debt Service Fund for payment of currently due bond interest payments.
The General Fund transfers $13,000 to the Central Supplies Fund for supplies it received from the Central Supplies Fund.
The Capital Projects Fund completes a library building project and transfers the remaining cash to the Debt Service Fund.
The General Fund transfers $400,000 to establish a Central Supplies Fund in which the amount will not be repaid.
Instructor Explanation: Chapter 4
Points Received: 5 of 5
Comments:
Question 5. Question : (TCO B) Which of the following is true regarding the government-wide Statement of Activities?
Student Answer: Taxes levied for specific functions may be reported as program revenue.
The Statement of Activities includes depreciation expense.
In the government-wide Statement of Activities, “special items†are those items that are both unusual and infrequent and are not under the control of management.
Transfers between governmental and business-type activities are eliminated and do not appear on the government-wide Statement of Activities.
Instructor Explanation: Chapter 2
Points Received: 5 of 5
Comments:
Question 6. Question : (TCO D) Which of the following is not correct with respect to accounting for supplies inventories in a governmental fund?
Student Answer: Typically, supplies inventory is a significant portion of a governmental fund balances.
An amount equal to the ending balance of supplies is reported as Nonspendable Fund Balance.
Supplies inventories may be recorded using either the purchase method or the consumption method.
None of the above
Instructor Explanation: Chapter 4
Points Received: 5 of 5
Comments:
Question 7. Question : (TCOs A and B) Identify at least three items that are found in the Required Supplementary Information section of the Comprehensive Annual Financial Report.
Question 8. Question : (TCO D) The City of Davenport adopted the following budget for fiscal year 2012:
Anticipated Revenues:
Property Taxes $5,340,000
Licenses and Permits 523,000
Fines and Forfeits 425,000
Total $6,288,000
Approved Expenditures:
General Government $2,160,000
Public Safety 2,450,000
Public Works 1,560,000
Total $6,170,000
In addition, the City reported the following actual amounts for the same fiscal year:
Revenues:
Property Taxes $5,375,000
Licenses and Permits 519,000
Fines and Forfeits 437,000
Total $6,331,000
Expenditures-Current Year:
General Government 2,175,000
Public Safety 2,490,000
Public Works 1,542,000
Total 6,207,000
Required: Prepare a budgetary comparison schedule for the city ended June 30, 2012 assuming the fund balance of the General Fund (Budgetary Basis) was $598,000 on July 1, 2011. No “original budget†column will be required. Please include a “variance†column.
Please arrange your budget utilizing the appropriate format.
Question 9. Question : (TCO D) The City of Martinville had the following pre-closing account balances in its General Fund as of June 30, 2012. Debits and credits are not separated; each account had its “normal†balance. Among the expenditures that are recorded this year is an amount that has been expended on supplies ordered at the end of the previous year. Assume that the encumbrances do not lapse and that the city failed to make the proper journal entry or entries necessary to re-establish the encumbrance in the current year.
Pre-closing Trial Balance of the City of Martinville as of June 30, 2012:
Cash $80,000
Estimated Revenues 6,300,000
Revenues 6,380,000
Appropriations 5,890,000
Estimated Other Financing Sources 79,000
Estimated Other Financing Uses 320,000
Expenditures 5,920,000
Taxes Receivable-Delinquent 45,000
Fund Balance - July 1, 2011 380,000
Vouchers Payable 140,000
Encumbrances 280,000
Transfer Out to Debt Service Fund 150,000
Transfer In from Enterprise Fund 100,000
Fund Balance-Reserve for Encumbrances 300,000
Required:
(A) Prepare the necessary entries to close the General Fund of the City of Martinville.
(B) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the City of Martinville for the year ended June 30, 2012. Please make sure you end with the Fund Balance for the year ending June 30, 2012.
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