1. The following revenues were among those reported by Arvida Township in 2012:
Net rental revenue (after depreciation) from......... $ 40,000
a parking garage owned by Arvida
Interest earned on investments held for
employees’ retirement benefits............. 100,000
Property taxes..................... 6,000,000
What amount of the forgoing revenues should be accounted for in Arvida’s governmental funds?
a. $6,140,000
b. $6,100,000
c. $6,040,000
d. $6,000,000
2. Taylor City issued the following long-term obligations:
Revenue bonds to be repaid from admission
fees collected from users of the city swimming pool....... $1,000,000
General obligation bonds issued for the city water
and sewer fund that will service the debt........... $1,800,000
Although these bonds are expected to be paid from enterprise funds, the full faith and credit of the city has been pledged as further assurance that the obligations will be paid. What amount of these bonds should be accounted for in the proprietary funds?
a. $0
b. $1,000,000
c. $1,800,000
d. $2,800,000
3. The following proceeds received by Glad City in 2011 are legally restricted to expenditure for specified purposes:
Donation by a benefactor mandated to
provide meals for the needy............. $200,000
Sales taxes to finance the maintenance of tourist
facilities owned by the city............ 800,000
What amount should be accounted for in Glad’s fiduciary funds?
a. $0
b. $200,000
c. $800,000
d. $1,000,000
4. In connection with Thurman Township’s long-term debt, the following cash accumulations are available to cover payment of principal and interest on:
Bonds for financing of water treatment plant
Construction.............. $1,000,000
General long-term obligations....... 400,000
The amount of these cash accumulations that should be accounted for in Thurman’s debt service funds is:
a. $0
b. $400,000
c. $1,000,000
d. $1,400,000
Use the following information in answering questions 5 and 6:
On December 31, 2011, Cane City paid a contractor $3,000,000 for the total cost of a new municipal annex built in 2011 on city-owned land. Financing was provided by a $2,000,000 general obligation bond issue sold at face amount on December 31, 2011, with the remaining $1,000,000 transferred from the general fund.
5. What account and amount should be reported in Cane’s 2011 financial statements for the general fund?
a. Other financing uses, $1,000,000
b. Other financing sources, $2,000,000
c. Expenditures, $3,000,000
d. Other financing sources, $3,000,000
6. What accounts and amounts should be reported in Cane’s 2011 financial statements for the capital projects fund?
a. Other financing sources, $2,000,000; general long-term debt, $2,000,000
b. Revenues, $2,000,000; expenditures, $2,000,000
c. Other financing sources, $3,000,000; expenditures, $3,000,000
d. Revenue, $3,000,000; expenditures, $3,000,000