Transaction Reporting in Fund and Government-Wide Statements Each transaction relates to the activities of Lancaster County. 1. General obligation bonds, due in 20 years, are
Transaction Reporting in Fund and Government-Wide Statements
Each transaction relates to the activities of Lancaster County.
1. General obligation bonds, due in 20 years, are issued for $10,000,000 in cash. The bonds are used to finance the building of a new community center. The total cost of the community center is $12,000,000.
2. Principal of $500,000 and interest of $25,000 are paid on general obligation debt. This debt was not used to finance capital assets.
3. Snow removal equipment is purchased by the general fund at a cost of $150,000.
4. Equipment with original cost of $300,000 is sold for $40,000. The equipment had a 5-year life when purchased, and was sold after 4 years. The county uses straight-line depreciation when appropriate. The equipment was used in general government operations.
5. The county collects $225,000 in property taxes to be remitted to the town.
6. Investments are made using $550,000 withheld from paychecks of county workers to finance their pension plan.
7. The investments in transaction 6 increase in value by $11,000 during the year, although the investments are not liquidated.
8. Cash of $200,000 is received from a citizen, to be held in trust and used for scholarships for local citizens to attend local universities. All amounts received are spendable.
Required
For each transaction:
Indicate the fund affected and prepare the journal entry required in the fund financial statements.
Indicate whether the transaction is considered a governmental or business-type activity in the government-wide financial statements and prepare the journal entry required in the government-wide financial statements.
Instructions:
If an item is not reported in a fund statement and/or in the government-wide statements, select Not applicable and No entry.
Enter answers using all zeros (do not abbreviate to millions or to thousands).
1. General obligation bonds, due in 20 years, are issued for $10,000,000 in cash. The bonds are used to finance the building of a new community center. The total cost of the community center is $12,000,000.
Fund financial statements:
1.A Which fund is the transaction recorded in? (Capital projects fund/custodial fund/debt service fund/general fund/pension trust fund/ special revenue fund/NA)
Journal Entries
Description Debit Credit
Answer
Answer
To record Issuance of bonds
Description Debit Credit
Answer
Answer
To record costs incurred to build the community center
1.B
Government-wide statements:
Item(s) is/are reported as (business type/government type/NA)
Journal Entries
Description Debit Credit
Answer
Answer
To record issuance of bonds.
Description Debit Credit
Answer
Answer
To record costs incurred to build the community center.
Description Debit Credit
Answer
Answer
To recategorize net position.
2. Principal of $500,000 and interest of $25,000 are paid on general obligation debt. This debt was not used to finance capital assets.
Fund financial statements:
2.A
Which fund is the transaction recorded in? (Capital projects fund/custodial fund/debt service fund/general fund/pension trust fund/ special revenue fund/NA)
Journal Entries
Description Debit Credit
Expenditures: principal Answer
Answer
Answer
2.B
Government-wide statements:
Item(s) is/are reported as (business type/government type/NA)
Journal Entries
Description Debit Credit
Long-term general obligation debt Answer
Answer
Answer
3. Snow removal equipment is purchased by the general fund at a cost of $150,000.
3.A
Fund financial statements:
Which fund is the transaction recorded in? (Capital projects fund/custodial fund/debt service fund/general fund/pension trust fund/ special revenue fund/NA)
Journal Entries
Description Debit Credit
Answer
Answer
3.B
Government-wide statements:
Item(s) is/are reported as (business type/government type/NA)
Journal Entries
Description Debit Credit
Answer
Answer
Answer
Answer
To recategorize net position.
4. Equipment with original cost of $300,000 is sold for $40,000. The equipment had a 5-year life when purchased, and was sold after 4 years. The county uses straight-line depreciation when appropriate. The equipment was used in general government operations.
4.A
Fund financial statements
Which fund is the transaction recorded in? (Capital projects fund/custodial fund/debt service fund/general fund/pension trust fund/ special revenue fund/NA)
Journal Entries
Description Debit Credit
Answer
Answer
4.B
Government-wide statements:
Item(s) is/are reported as (business type/government type/NA)
Journal Entries
Description Debit Credit
Cash Answer
Answer
Answer
Answer
Answer
To recategorize net position.
5. The county collects $225,000 in property taxes to be remitted to the town.
Fund financial statements:
5.A
Which fund is the transaction recorded in? (Capital projects fund/custodial fund/debt service fund/general fund/pension trust fund/ special revenue fund/NA)
Journal Entries
Description Debit Credit
Answer
Answer
To collection of property taxes.
Description Debit Credit
Answer
Answer
To record property taxes to be remitted to the town.
5.B
Government-wide statements:
Item(s) is/are reported as (business type/government type/NA)
Journal Entries
Description Debit Credit
Answer
Answer
6. Investments are made using $550,000 withheld from paychecks of county workers to finance their pension plan.
Fund financial statements:
6.A
Which fund is the transaction recorded in? (Capital projects fund/custodial fund/debt service fund/general fund/pension trust fund/ special revenue fund/NA)
Journal Entries
Description Debit Credit
Answer
Answer
To collection of property taxes.
6.B
Government-wide statements:
Item(s) is/are reported as (business type/government type/NA)
Journal Entries
Description Debit Credit
Answer
Answer
7. The investments in transaction 6 increase in value by $11,000 during the year, although the investments are not liquidated.
Fund financial statements:
7.A
Which fund is the transaction recorded in? (Capital projects fund/custodial fund/debt service fund/general fund/pension trust fund/ special revenue fund/NA)
Journal Entries
Description Debit Credit
Answer
Answer
7.B
Government-wide statements:
Item(s) is/are reported as (business type/government type/NA)
Journal Entries
Description Debit Credit
Answer
Answer
8. Cash of $200,000 is received from a citizen, to be held in trust and used for scholarships for local citizens to attend local universities. All amounts received are spendable.
Fund financial statements:
8.A
Which fund is the transaction recorded in? (Capital projects fund/custodial fund/debt service fund/general fund/pension trust fund/ special revenue fund/NA)
Journal Entries
Description Debit Credit
Answer
Answer
8.B
Government-wide statements:
Item(s) is/are reported as (business type/government type/NA)
Journal Entries
Description Debit Credit
Answer
Answer
Please answer all parts of the question.
Accounts are listed below I tend to get answers not including these accounts so I am reposting question:
Additions, bond proceeds, bonds payable, capital assets net, cash, deductions, expenditures - capital outlay, expenditures: interest, gain on sale of capital assets, interest expense, investments, liabilty to town for property taxes, loss on sale of capital assets, net investment in capital assets, proceeds from sale of capital assets, revenues, restricted net position, unrealized gains on investments, unrestricted net postion, no entry
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Authors: Stephen L. Nesbitt
2nd Edition
1119944392, 978-1119944393
