EXERCISE 18-13 Determining a Governments Major Funds - THIS IS THE QUESTION I NEED AN ANSWER FOR 8-13. THANK YOU Required: Using Illustrations 18-9, 18-10, 18-13, and 18-14, determine which of Model Citys funds qualify as major funds using the percentage cutoffs. Calculate aggregate amounts for all other nonmajor funds, and indicate how they would be presented.

*** Information for 8-8 and 8-10 along with 8-13 and 8-14 should be able to answer 8-13 Thank you.

NEED ANSWER TO 8-13 ONLY AND HAVE SUPPLIED YOU WITH ADDITIONAL QUESTIONS THAT 8-13 SAID YOU NEEDED TO HAVE IN ORDER TO GET THE CORRECT ANSWER.

EXERCISE 18-9 Multiple Choice Select the best answer for each of the following: 1. Premiums received on general obligation bonds are generally transferred to what fund or group of accounts? (a) Debt Service. (b) General. (c) Special Revenue. 2. Of the items listed below, those most likely to have parallel accounting procedures, account titles, and financial statements are (a) Special Revenue Funds and Internal Service Funds. (b) Internal Service Funds and Debt Service Funds. (c) The General Fund and Special Revenue Funds. 3. Recreational facilities run by a governmental unit and financed on a user-charge basis would be accounted for in which fund? (a) General. (b) Trust. (c) Enterprise. (d) Capital Projects. 4. Taylor City should record depreciation as an expense in its (a) Enterprise Fund and Internal Service Fund. (b) Internal Service Fund and the General Fund.

(c) General Fund and Enterprise Fund. (d) Enterprise Fund and Capital Projects Fund. 5. A performance budget relates a governmental units expenditures to (a) Objects of Expenditure. (b) Expenditures of the preceding fiscal year. (c) Individual months within the fiscal year. (d) Activities and programs.

EXERCISE 18-10 Identify the Fund Write the name of the fund(s) in which each of the following transactions or events would be recorded. 1. Bonds, the proceeds of which were to be used for the construction of a new City Hall, were issued. 2. A sum of money was appropriated, to be advanced from monies on hand, to finance the establishment of a City Garage for servicing city-owned transportation equipment. 3. A contribution was received from a private source. The use of the income earned on the investment of this sum of money was specifically designated by the donor. 4. Proceeds received from a bond issue were used for the purchase of the privately owned water utility in the city. 5. Property taxes designated to be set aside for the eventual retirement of the City Hall building bonds were collected. 6. Real estate and personal property taxes, which had not been assessed or levied for any specific purpose, were collected. 7. Payment was made to the contractor for progress made in the construction of the new City Hall. 8. Interest was paid on the bonds issued for the purchase of the water utility. 9. Bonds, the proceeds of which are to be used to pay for the improvement of streets in the residential district, were issued. The debt is to be serviced by assessments on the property benefited. The government is obligated to the bondholders to assure the timely payment of principal and interest on the debt. 10. Salaries of personnel in the office of the mayor were paid. 11. Interest was paid on the City Hall building bonds. 12. Installment payments were received from the property owners assessed for the street improvement project. 13. Interest was paid on bonds issued for the payment of the improvement of streets in the residential district. 14. Interest was received on the investment of moneys set aside for the retirement of the City Hall building bonds. 15. Sums of money were received from employees by payroll deductions to be used for the purchase of United States government bonds for those employees individually. 16. City motor vehicle license fees, to be used for general street expenditures, were collected. 17. Materials to be used for the general repair of the streets were purchased. 18. The City Garage was reimbursed for services on the equipment of the fire and police departments. 19. Excess funds were transferred from the water utility to the General Fund.

EXERCISE 18-13 Determining a Governments Major Funds Required: Using Illustrations 18-9, 18-10, 18-13, and 18-14, determine which of Model Citys funds qualify as major funds using the percentage cutoffs. Calculate aggregate amounts for all other nonmajor funds, and indicate how they would be presented.

EXERCISE 18-14 Determining Amounts to Report for Long-Term Liabilities On January 1, 2012, Metropolis City issued a 7%, 5-year, $100,000 general obligation bond for $96,007. The bond pays interest annually (on December 31) and was issued to yield 8%. The bond was issued in the capital projects fund, and the proceeds are to be used to build a giant ball that will drop twenty stories on New Years Eve. No construction has occurred. A debt service fund was created to meet the interest and principal payments. The city prepares financial statements on December 31 of each year. Required: Determine how the above information will be reflected on each of the following statements for the year 2012. 1. The governmental funds statement of revenue, expenditures, and changes in fund balances. List the governmental fund and then list the dollar amount within the appropriate heading on the statement (such as Revenues, Expenditures, or Other Financing Sources (Uses)). 2. The government-wide statement of net assets. 3. The government-wide statement of activities.