Question
1. The principal financial statements of business enterprises are the balance sheet, income statement, and statement of cash flows. What similarities and differences are there
1. The principal financial statements of business enterprises are the balance sheet, income statement, and statement of cash flows. What similarities and differences are there between these statements and the operating and position statements of a proprietary fund? A governmental fund?
2. Bell County adopted the following budget for one of its Special Revenue Funds for the 20X9 fiscal year, its first year in operation:
Revenues:
Property taxes ............................................................. $500,000
Sales taxes .................................................................. 200,000
Federal grants ............................................................. 100,000
Service charges .......................................................... 80,000
Fines ........................................................................... 50,000
Other .......................................................................... 20,000
$950,000
Expenditures:
Manager ..................................................................... 110,000
Commission ............................................................... 90,000
Roads and bridges ...................................................... 400,000
Courts ......................................................................... 60,000
Sheriff ........................................................................ 180,000
Jail .............................................................................. 70,000
Other .......................................................................... 30,000
$940,000
Budgeted Excess of Revenues over Expenditures ..... $ 10,000
Prepare the journal entries required to record the adoption of the budget and the numbered transactions and events in the General Ledger and in the Revenues and Expenditures Subsidiary Ledgers of the Marcus County Special Revenue Fund for the 20X9 fiscal year.
Problem 3 (Transaction Analysis)
a. Describe the key unique characteristics and major types of government and nonprofit (G&NP) organizations.
b. Describe the objectives of G&NP accounting and financial reporting.
c. Identify the authoritative sources of financial reporting standards for various types of G&NP organizations and the level of authority (hierarchy) of various pronouncements and guides.
Problem 4Fund and Nonfund Accounts identification
Match the following situations with the fund or nonfund account best suited to account for it. A fund or nonfund account may be used more than once. The funds and nonfunds accounts are:
The operations of a city bus line receiving all its funding from user charges.
Receipts from a special fishing tax restricted to maintain the (no-charge) public fishing pier.
Collects taxes withheld from employees throughout the government and makes payments to the appropriate government for these withholdings.
Donation to the city to be invested in perpetuity with the earnings from that investment to help maintain city parks.
The activities of a central motor pool that provides and services vehicles for the use of municipal employees on official business.
The segregation of resources accumulated to pay principal and interest on long-term debt of the general government.
The levy and collection of property taxes for general operations of a city.
Used to account for acquisition of major capital assets.
Accounts for contributions by the government and employees to be invested and paid to employees after retirement.
Amounts owed to general government bondholders that must be paid in the future.
Used to account for land, buildings, and equipment owned by the government.
Activities whose management requires a periodic measurement of revenues and expenses, and whose customers are the general public.
Receipts from a special tax levy to retire and pay interest on general obligation bonds issued to finance the construction of a new city hall.
Donation to the city where the principal is to remain intact forever and the earnings are to be used to benefit the Boy Scout and Girl Scout organizations in the city.
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