1.) Answer the four-part question below

A.) Lake city issued 3,000,000 of general obligation bonds at 102 to finance a capital project. The $60,000 premium was to be used for payment of principal and interest. This transaction should be accounted for in the:

1. Capital projects funds only
2. Debt service funds and the general long-term debt account group only
3. Capital projects funds and debt service funds only
4. Debt service funds only
5. Capital projects funds, debt service funds and as assets and liabilities in the governmentwide financial statements
6. Capital projects funds and as assets in the government-wide financial statements

B.) James County received a 5,000,000 capital grant to be equally distributed among its five municipalities. The grant is to finance the construction of capital assets. James had no administrative or direct financial involvement in the construction. In which fund should James record the receipt of cash?

1. Investment trust fund
2. Capital project fund
3. Custodial fund
4. Special revenue fund
5. Private purpose trust fund
6. Debt service fund
7. General fund

C.) During its fiscal year ended December 31, 2019, Colmar city issued purchase orders totaling 7,500,000, which were properly charged to encumbrances at that time. Colmar Citys appropriations do not lapse. Colmar received goods and related invoices at the encumbered amounts totaling 7,200,000 before year-end. The remaining goods of 300,000 were not received until after year-end. Colmar paid 7,000,000 of the invoices received during the year. What amount of Colmars encumbrances were outstanding at December 31, 2019?

1. 500,000
2. 7,500,000
3. 300,000
4. 7,200,000
5. 200,000
6. 0

D.) Encumbrances outstanding at year-end in a countys general fund would most likely be reported as a:

1. Fund balance-unassigned in the general fund
2. Liability in the statement of net position
3. Fund balance-restricted in the general fund
4. Fund balance-committed in the general fund
5. Liability in the general fund
6. Liability in the general long-term debt account group