(TCOs A and B) Fiduciary funds are to use which of the following measurement and basis of accounting? (Points : 5) 2. (TCOs A and B) Which of the following is included in the Required Supplementary Information Section of the Comprehensive Annual Financial Report? (Points : 5)
3. (TCOs A and B) Proprietary funds use which of the following measurement focus and basis of accounting? (Points : 5)
4. (TCOs B and C) Governmental Fund Balance is required to be displayed in which of the categories? (Points : 5)
5. (TCOs B and C) Which of the following is a true statement regarding modified accrual accounting? (Points : 5)
6. (TCOs B and C)) Capital assets that are used by an enterprise fund should be accounted for in the following fund? (Points : 5)
7. (TCO E) General Fixed Assets that are acquired with governmental fund resources should be recorded in the (Points : 5)
8. (TCO E) Which of the following items described below is not a source of funding for capital projects? (Points : 5)
9. (TCO E) Which of the following funds or activities general journals would it be inappropriate to record depreciation of capital assets? (Points : 5)
| 10. (TCO D) When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected, what type of short-term is desirable and secured by a government’s power of tax? (Points : 5) |
1. (TCO E) The City of Holland issued bonds on August 1, 2012. The interest on its bonds is paid from City of Holland Debt Service Fund on February 1 and August 1. Should the interest payable be accrued at December 31, the end of the city’s fiscal year? Why? Would you have a different answer if the interest payment dates were July 15 and January 15? Please explain. (Points : 30) 2. (TCOs A and B) What are fiduciary funds? Please identify and explain the two main types and what is the main difference between the funds? (Points : 30) |
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3. (TCO D) The City of Melvin received a gift of $2,500,000 from a local resident on April 1, 2012 and signed an agreement that the funds would be invested on a permanent basis and the income would be used to purchase books for the city library. The following transactions took place during the fiscal year ended Dec 31, 2012.
a. The gift was recorded on the books on April 1.
b. On April 1, 2012, the PRZ Co. bonds were purchased in the amount of $2,500,000, at par. The bonds carry an annual interest rate of 5 percent, payable semiannually on October 1 and April 1.
c. On October 1, the semiannual interest was received.
d. From October 1 through December 1, payments were made totaling $35,000 to purchase books for the city library.
e. On December 31, an accrual was made for interest.
f. After a review of the bond market on December 31, 2012, the bonds had a market value of $2,511,000, exclusive of accrued interest.
g. The books were closed on December 31.
Required
a. Record the transactions on the books for Library Book Permanent Fund.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Library Book Permanent Fund for the year ended December 31, 2012.
c. Prepare the Balance Sheet for the Library Book Permanent Fund for the year ended December 31, 2012. (Points : 40)
Waqas Ahmed
11 years ago
