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Would a grant of $24,000 by the state to each district be equalizing in its effect on the two districts?
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- In 2019, a state government collected income taxes of $8,000,000 for the benefit of one of its cities that imposes an income tax on its residents. The state periodically remitted these collections to the city. The state should account for the $8,000,000 in the a. general fund. b. agency funds. c. internal service funds. d. special assessment funds.The general principles of revenue recognition are the same for both governmental and government-wide statements. For each of the following situations, indicate the amount of revenue that the government should recognize in an appropriate governmental fund as well as in its government-wide statement of activities in its fiscal year ending December 31, 2021. Briefly justify your response, making certain that, as appropriate, you identify the key issue of concern. 1. In October 2020, a state received a federal grant of $300 million (in cash) to assist local law enforcement efforts. The federal government has established specific criteria governing how the funds should be distributed and will monitor the funds to ensure that they are used in accordance with grant provisions. The grant is intended to cover any allowable expenditure incurred in the calendar years 2021 through 2022. In 2021, the state incurred $160 million of allowable expenditures. 2. In December 2020, a city levied property…Ibri city was awarded two state grants during the fiscal year 2019 RO 2 million and RO 1 million respectively. These grants used only for restricted purposes. The expenditure related to the restricted activity is RO 4 million. The excess of revenue over expenditure in special revenue fund is a. RO - 1 million b. RO 3 million c. RO 1 million d. None of the options
- Analyze the following two scenarios. What are your recommendations? A county was the recipient of a bequest. Land was donated to the county with the donor stipulating it could only be used for the new public safety facility. How would this contribution be reported in the county’s Statement of Activities?6. Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries. In order to reimburse the county for expenditures for administering the Tax Agency Fund, the Tax Agency Fund is to deduct 1.5 percent from the collections from the city and school district. The total amount deducted is to be added to the collections for the county and remitted to the County General Fund. You are to record the following transactions in the accounts of the Washington County Tax Agency Fund. 1. Current year tax levies to be collected by the Tax Agency Fund were:County General Fund -- $9,800,000Town of Samuels -- 6,200,000Washington County School District -- 9,600,000 2. In the first half of the year $4,120,000 was collected for the County General Fund, $3,456,000 for the Town and $4,608,000 for the School District. 3. Liabilities to all three units were recorded. Required: Record the transactions in the accounts of the Washington County Tax Agency Fund.Which of the following would be considered a program revenue in the statement of activities for a governmental unit?a. A grant from the state restricted for an after-school child care programb. Hotel taxes restricted for tourist developmentc. Both of the aboved. Neither of the above
- 1) State whether each of the following items should be classified as taxes, licences and permits, intergovernmental revenues, charges for services, fines and forfeits or miscellaneous revenue in a governmental fund. d) Traffic violation penalties. e) Federal community development block grant. f) Donation of bonds by a wealthy resident.Which of the following statements is correct? Multiple Choice A contribution receivable should be recognized as an asset when the amount can be reasonably estimated AND the ultimate collection is reasonably assured. A contribution receivable should be recognized as an asset when the amount can be reasonably estimated OR the ultimate collection is reasonably assured. Bequests are accrued at the time the donor advises the NFPO of the gift. Government funding is recognized as contribution revenue as long as the government is the direct recipient of the good or service. Group EndsA city constructs a special assessment project (a sidewalk) for which it is secondarily liable. The city issues bonds of $90,000. It authorizes another $10,000 that is transferred out of the general fund. The sidewalk is built for $100,000. The citizens are billed for $90,000. They pay this amount and the debt is paid off. Where is the $100,000 expenditure for construction recorded? Choose the correct.a. It is not recorded by the city.b. It is recorded in the agency fund.c. It is recorded in the general fund.d. It is recorded in the capital projects fund.
- Lincoln County's General Fund had two interfund transactions: 1. The general fund paid $225,000 to the housinhg and urban development fund, a special revenue fund that is supported by grantsfrom the federal government on a cost reimbersment basis. The amount is to be reoaid to the general fund as grant proceeds are received from the federal government. 2. The general fund paid $162,000 to the tourism fund, a special revenue fund that is supported by hotel and restaurant taxes. The amount is intended to supplement the taxes raised, and there is no expectation that it will be repaid to the general fund. Required: Prepare the journal entriess in the general fund and affected special revenue funds for the interfund transactions above. Describe the effect of these transactions on the fund balance of the general fund and special revenue funds.Which of the following is an example of activities that are likely to be accounted for in a government's general fund? a. sales taxes collected by a state on behalf of counties within the state b. donations that must be kept intact, but whose income must be used to beautify parks c. property taxes levied and collected. d. electricity utilities of government that are financed by user chargesTaxes collected and held by Dunne County for a school district would be accounted for in which of the following funds? a. Trust b. Agency c. Special revenue d. Internal service