HW#4 Due 2/7/17 in class (10 points)

Name: _____________________________________ Section: _____________________________

Provide the journal entries for the governmental fund AND government-wide statements.

In January 2017, a city is awarded a reimbursement grant of $500,000 to provide diversity training to its employees. During 2017, it expends $350,000 on training, for which it is reimbursed $225,000. It expects to be reimbursed for the remaining $125,000 balance in March 2018 and to expend and be reimbursed for the remaining $150,000 of its grant later in 2018. Record all entries for 2017, including training costs.

Fund

Government-wide

A city levies property taxes of $800,000 for the year 2017. In 2017, it collects $550,000. In addition, it collects $100,000 in January and in February 2018 and estimates that of the remaining $50,000, $40,000 will be collected in March 2018 and $10,000 will be uncollectible. Record entries in 2017.

Fund

Government-wide

Questions

1.GASB Statement 33 describes several categories of revenues (non-exchange and exchange). For each of the following revenues (recognized by a city) indicate the category into which its best fits.

A state grant that the city must accept and used to hire air pollution inspectors

_______________________________________________

Revenue from fees charged by the police department to monitor a charity bicycle ride

_______________________________________________

c. Fines for traffic violations

_______________________________________________

2. The City of Chessie received two contributions during its current fiscal year:

A developer contributed 10 acres of land as part of an agreement with the City to allow more houses to be built per acre than current zoning laws permit. The City will use the land to build a park. The developer purchased the land for $1.5 million. The fair value of the land at the time of the contribution was $1.9 million.

A local resident contributed 30 acres of land to the City. The City agreed that it would sell the land and use the proceeds to add a new wing to the Citys senior center. The resident paid $500,000 for the land. When it was contributed, it had a fair value of $1.5 million. The City sold the land to several developers a month after its fiscal year-end for $1.7 million.

Prepare journal entries to record each of these contributions in the Citys general fund.

Land to be used as a park

Land to be sold