Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q1. The following are statements for the use of Proprietary Funds State whether the following are true or false. For the false items, explain why
Q1. The following are statements for the use of Proprietary Funds State whether the following are true or false. For the false items, explain why they are false.
a.Enterprise Funds are used only when all services are provided to non-governmental entities, and Internal Service Funds are used only when all services are provided to governmental agencies that are a part of the reporting government.
b.Enterprise Funds use the economic resources measurement focus and full accrual basis of accounting only when they want to compute the costs of services; otherwise, they use the current financial resources measurement focus and modified accrual basis of accounting.
Q.2. Towry School District accepts donations that are used to provide awards to graduating seniors. Record the following transactions in the Towry Private Purpose Trust Fund - Awards Fund. Also, prepare a statement of changes in fiduciary net position for the Fund for the year ended December 31, 2013. This is the first year of operation for the Towry Private Purpose Trust Fund - Awards Fund.
a.Hannah, noted philanthropist, donates marketable securities worth $600,000 to the District, stipulating that all earnings on the securities be used for awards to graduates.
b.The District receives dividends on the securities in the amount of $15,000.
c.The District makes various awards to graduating seniors in the amount of $20,000.
d.When the District prepares financial statements at the end of the year, the marketable securities have a fair value of $590,000.
Q3. Following are December 31, 2013 trial balances (budgetary accounts excluded) for the General Fund, Debt Service Fund, and Capital Projects Fund for Hebert County.
Prepare a governmental funds balance sheet and a statement of revenues, expenditures, and changes in fund balances as of and for the year ended December 31, 2013.
The General Fund had encumbrances of $25 outstanding on December 31, 2013.
DebitsCredits
General Fund
Cash$1,900
Property taxes receivable - delinquent330
Allowance for uncollectible property taxes$ 10
Accounts payable120
Deferred revenues250
Unassigned fund balance, January 1, 20131,720
Revenues - property taxes3,200
Revenues - licenses and fees350
Revenues - parks admissions fees40
Investment income220
Expenditures - general government360
Expenditures - public safety1,800
Expenditures - public works840
Expenditures - parks and culture350
Transfer out to Debt Service Fund250
Transfer out to Capital Projects Fund 80____Totals$5,910$5,910
Debt Service Fund
Cash$70
Assigned fund balance, January 1, 2013$60
Expenditures - bond principal110
Expenditures - interest130
Transfer in from General Fund___250
Totals$310$310
Capital Projects Fund
Cash$240
Expenditures - capital outlay420
Transfer in from General Fund$80
Proceeds of bonds___580
Totals$660$660
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started