Question
3-2. City of Oxbow Partial Balance Sheet - General Fund As of December 31, 2020 FUND BALANCES Nonspendable - Prepaid Insurance 7,000 Restricted - Intergovernmental
3-2.
City of Oxbow Partial Balance Sheet - General Fund As of December 31, 2020 |
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FUND BALANCES |
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Nonspendable - Prepaid Insurance | 7,000 |
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Restricted |
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- Intergovernmental grants | 199,000 |
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- Emergency services | 26,000 |
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Committed |
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- Rainy day fund | 600,000 |
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- Capital projects | 275,000 |
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Assigned | - |
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Unassigned | 452,000 |
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TOTAL FUND BALANCE | $ 1,559,000 |
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The budget stabilization fund's purpose is too vague and must be reported with Unassigned fund balance.
3-4. | Debits | Credits | ||
A. | Estimated Revenues Control Appropriations Control Budgetary Fund Balance | 10,800,000 | 9,400,000 1,400,000 | |
B. | Estimated Revenues Control Budgetary Fund Balance Appropriations Control | 9,700,000 400,000 | 10,100,000 | |
C. | Estimated Revenues Control Estimated Other Financing Sources Control Appropriations Control Estimated Other Financing Uses Control Budgetary Fund Balance | 10,200,000 1,300,000 | 9,700,000 900,000 900,000 | |
D. | Estimated Revenues Control Estimated Other Financing Sources Control Budgetary Fund Balance Appropriations Control Estimated Other Financing Uses Control | 9,900,000 1,100,000 100,000 | 10,000,000 1,100,000 |
3-5.
VILLAGE OF SYCAMORE GENERAL JOURNAL | ||||
Debits | Credits | |||
A. | Estimated Revenues Control Appropriations Control Budgetary Fund Balance | 1,120,000 | 987,000 133,000 | |
B. | Cash Revenues Control | 1,105,000 | 1,105,000 | |
C. | Encumbrances Control budgetary Fund Balance - Reserve for Encumbrances | 479,000 | 479,000 | |
D. | Budgetary Fund Balance - Reserve for Encumbrances Encumbrances Control Expenditures Control Accounts Payable | 470,500 470,000 | 470,500 470,000 | |
E. | Expenditures Control Accounts Payable | 513,000 | 513,000 | |
F. | Accounts Payable Cash | 983,000 | 983,000 |
3-6.
A. (1) Exchange transactions are transactions "in which each party receives and gives up essentially equal values." (2) nonexchange transactions are transactions "in which a government receives (or gives) value without directly giving (or receiving) equal value in exchange."
B.The four eligibility requirements are
(1) required characteristics of recipients: required characteristics of recipients means that recipients must be the type specified in the legislation or grant agreements.
(2) time requirements: if a donor specifies that a grant be expended by a recipient in a future period, then the recipient would not recognize the receivable or the revenue until that future period
(3) reimbursements: reimbursement grants require that qualifying expenditures must be incurred by a recipient before a revenue can be recognized.
(4) contingencies: Resources pledged that have a contingency attached are not to be recognized until the contingency has been met.
C. The four classes of nonexchange revenues are (1) imposed nonexchange transactions, (2) derived tax revenues, (3) government-mandated nonexchange transactions, and (4) voluntary nonexchange transactions.
An example of imposed nonexchange revenues would be property taxes. Assets from property taxes are recognized when an enforceable legal claim exists. Revenues would be recognized in the period for which the taxes are levied.
Examples of derived tax revenues include sales, income, and motor fuel taxes. For derived tax revenues, assets are recognized when the tax is imposed. The tax is recognized as revenue at the same time as the asset, providing that the underlying transaction has taken place.
An example of government-mandated nonexchange transactions would be state funding for mainstreaming handicapped children in classrooms, accompanied by state law that mainstreaming take place. Assets and revenues should be recognized when eligibility requirements have been met. An example of a voluntary nonexchange transaction would be a contribution or grant to support a program that was voluntarily entered into by the government. nonexchange transactions should be recognized as assets and revenues when eligibility requirements have been met.
3-7.
A. Under modified accrual accounting, revenues should be recognized when measurable and available to finance expenditures of the current period. Property taxes are considered to be available when received no more than 60 days after the end of a fiscal year.
B. Under modified accrual accounting, expenditures are decreases in net financial resources and are generally recognized when fund liabilities are incurred. Expenditures may be for current purposes, capital outlay, and debt service.
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