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14 CHAPTER 5 / GOVERNMENTAL ACTIVITIES EXPENDITURES AND Government-Wide 1. Amount that the general fund should Fund Statements Statements ognize as supplies expense, assuming a. S 0 inventory is accounted for on a purd S 0 b. $2 million basis. c. $ 0 $2 million 2. Amount that the district should reco a pension expenditure in its en d. S2 million S2 million fund 3. Amount that the district should recogni 5-2 as a pension expense in its governme During its fiscal year ending August 31, 2012, the wide statements Eaton School District engaged in the following 4. Amount that the general fund should res transactions: ognize as nonreciprocal transfers-out It established a purchasing department to be 5. Amount that the district should recogniz, as total debt service expenditures in is accounted for in a new internal service fund to purchase supplies and distribute them to oper- governmental funds. ating units. To provide working capital for the 6. Amount that the government should ree new department, it transferred $1.7 million from ognized as total debt service expense in in its general fund to the internal service fund. government-wide statements . During the year, operating departments that are 7. Amount that the district should recognize accounted for in the general fund acquired sup- as other financing sources in its general plies from the internal service fund, for which fund financial statements they were billed $300,000. Of this amount, the 8. Amount that the district should recog- government transferred $200,000 from the gen- nize as capital-related expenditures (in- eral fund to the internal service fund, expecting cluding depreciation) pertaining to its to transfer the balance in the following fiscal buses in its governmental fund financial year. The supplies had cost the purchasing de- statements. The district recognizes a full partment $190,000. During 2012, the operating departments used only $220,000 of the supplies year's depreciation on all capital assets in the year of acquisition. for which they were billed. They had no supplies on hand at the start of the year. 9. Amount that the district should recognize . The school district transferred S150,000 from its as capital-related expenses (including de- general fund to its debt service fund to make its preciation) pertaining to its buses in its required March 31, 2012, interest payment. This government-wide financial statements. amount was paid from the debt service fund The district recognizes a full year's de- when due. It represented interest on S8 million preciation on all capital assets in the year of bonds that were issued, at par, on September of acquisition 30, 2011. The next interest payment of S150,000 10. Amount that the district should recognize is due on September 30, 2012. The district also as nonspendable fund balance in its gor transferred S75,000 from the general fund to the ernmental fund statements. debt service fund to provide for the eventual repayment of principal. a. 0 i 300,000 The district transferred $4.5 million from the b. 75,000 general fund to its pension fund (a fiduciary j. 900,000 fund) in partial payment of its actuarially re- c. 80,000 k 1,925,000 quired contribution of $5.0 million for the year. d. 90,000 L. 4,500,000 On August 31, the district acquired school buses e. 137,500 m. 5.000.000 at a cost of $900,000. The district gave the f. 150,000 supplier installment notes that required the dis- n. 8,000,000 trict to make three annual payments of $361,903. 5. 220,000 o 8,900,000 The first payment is due in August 2013. The h. 275,000 buses have a useful life of 10 years, with no salvage value. 5-3 Select an answer to the following questions from The purchases method differs from the consumpa method. the amounts listed after them. An amount may be selected once, more than once, or not at all. The Boyd School District began a recent fiscm year with $3,000 of supplies in stock. During 5-2 During its fiscal year ending August 31, 2012, the Eaton School District engaged in the following transactions: . It established a purchasing department to be accounted for in a new internal service fund to purchase supplies and distribute them to oper- ating units. To provide working capital for the new department, it transferred $1.7 million from its general fund to the internal service fund. . During the year, operating departments that are accounted for in the general fund acquired sup- plies from the internal service fund, for which they were billed $300,000. Of this amount, the government transferred $200,000 from the gen- eral fund to the internal service fund, expecting to transfer the balance in the following fiscal year. The supplies had cost the purchasing de- partment S190,000. During 2012, the operating departments used only $220,000 of the supplies for which they were billed. They had no supplies on hand at the start of the year. The school district transferred $150,000 from its general fund to its debt service fund to make its required March 31, 2012, interest payment. This amount was paid from the debt service fund when due. It represented interest on S8 million of bonds that were issued, at par, on September 30, 2011. The next interest payment of $150,000 is due on September 30, 2012. The district also transferred $75,000 from the general fund to the debt service fund to provide for the eventual repayment of principal. . The district transferred $4.5 million from the general fund to its pension fund (a fiduciary fund) in partial payment of its actuarially re- quired contribution of $5.0 million for the year. On August 31, the district acquired school buses at a cost of $900,000. The district gave the supplier installment notes that required the dis- trict to make three annual payments of $361,903. The first payment is due in August 2013. The buses have a useful life of 10 years, with no salvage value. Select an answer to the following questions from he amounts listed after them. An amount may be selected once, more than once, or not at all. LAPENDITURES AND EXPENSES und should tee- assuming the on a purchases should recognize Liture in its general ct should recognize its government On fund should rec- 1. Amount that the general fund she ognize as supplies expense, assur inventory is accounted for on an basis. 2. Amount that the district should as a pension expenditure in its fund 3. Amount that the district should as a pension expense in its governme wide statements 4. Amount that the general fund should ognize as nonreciprocal transfers-our 5. Amount that the district should recogni as total debt service expenditures in in governmental funds. 6. Amount that the government should ree ognized as total debt service expense in its government-wide statements 7. Amount that the district should recognize as other financing sources in its general fund financial statements 8. Amount that the district should recog- nize as capital-related expenditures (in- cluding depreciation) pertaining to its buses in its governmental fund financial statements. The district recognizes a full year's depreciation on all capital assets in the year of acquisition 9. Amount that the district should recognize as capital-related expenses (including de- preciation) pertaining to its buses in its government-wide financial statements. The district recognizes a full year's de- preciation on all capital assets in the year of acquisition. _ 10. Amount that the district should recognize as nonspendable fund balance in its gov- ernmental fund statements. b. 75,000 c. 80,000 d. 90,000 e. 137,500 f. 150,000 g. 220,000 h. 275,000 i. 300,000 j. 900,000 k. 1,925,000 1. 4,500,000 m. 5,000,000 n. 8,000,000 o. 8,900,000