Q1. Explain Financial Reporting Objectives of federal government

Q1. Explain Financial Reporting Objectives of federal government

Q.2 Martin Township decides to construct a new city hall. Based on the following data, prepare a statement of revenues, expenditures, and changes in fund balance for Martin Township's Capital Projects Fund. All transactions occur within the calendar year 2013.

a.The Fund starts and ends the year with a zero fund balance.

b.The Fund's financing sources for the city hall project were: long-term bond proceeds - $5 million; operating transfer from the General Fund - $2 million; state grant - $1 million; interest from the temporary investment of cash - $70,000.

c.Total outlays for constructing the new city hall were: construction costs - $7,200,000; design and construction supervision fees - $600,000.

d.City laws require that, whenever bonds are used, any remaining difference between total financing sources and construction costs must be transferred to the Debt Service Fund.  Therefore, $270,000 was transferred to the Debt Service Fund.

Q.3 Following are December 31, 2013 pre-closing trial balances (budgetary accounts excluded) for the General Fund, Debt Service Fund, and Capital Projects Fund for Hebert County. Prepare a governmental funds balance sheet and a statement of revenues, expenditures, and changes in fund balances as of and for the year ended December 31, 2013. The General Fund had encumbrances of $25 outstanding on December 31, 2013. (All amounts are in thousands of dollars.)

DebitsCredits

General Fund

Cash$1,900

Property taxes receivable - delinquent330

Allowance for uncollectible property taxes$   10

Accounts payable120

Deferred revenues250

Unassigned fund balance, January 1, 20131,720

Revenues - property taxes3,200

Revenues - licenses and fees350

Revenues - parks admissions fees40

Investment income220

Expenditures - general government360

Expenditures - public safety1,800

Expenditures - public works840

Expenditures - parks and culture350

Transfer out to Debt Service Fund250

Transfer out to Capital Projects Fund           80____Totals$5,910$5,910

Debt Service Fund

Cash$70

Assigned fund balance, January 1, 2013$60

Expenditures - bond principal110

Expenditures - interest130

Transfer in from General Fund___250

Totals$310$310

Capital Projects Fund

Cash$240

Expenditures - capital outlay420

Transfer in from General Fund$80

Proceeds of bonds___580

Totals$660$660