Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 17, Problem 28P
To determine
Identify the correct option out of the given statements.
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Which of the following is true regarding the government-wide financial statements?a. The government-wide financial statement includes a statement of cash flows.b. The government-wide financial statements are prepared on the financial resources measurement focus for governmental activities and the economic resources measurement focus for business-type activities.c. The government-wide financial statement includes a statement of net position.d. Infrastructure assets must be depreciated on the statement of activities.
Prepare the journal entries for the following transactions to consolidate financial statements from fund-level statements to government-wide statements.
1....Beginning accumulated depreciation was $500.
2....Depreciation during the year was $169
3....Beginning compensated absences was 500.
The GASB identifies one of the broadest
objectives of government financial reporting
as:
A. assisting users in assessing profitability of
the government
B. assisting users in making economic, social,
and political decisions.
C. fairly presenting government financial
condition and operating results
D. providing information about the inflows
and outflows of cash
2. The 60-day limit on the period after the end
of the fiscal year that is used for governmental
fund revenue recognition cutoff purposes:
A. is optional for property taxes, but required
for most other governmental fund revenues
B. must be applied to all revenue sources
except charges for licenses and permits
C. must be applied to property taxes, but
cannot be applied to other governmental
fund revenue sources
D. must be applied to property taxes, but may
also be applied to other revenue sources
Knowledge Booster
Similar questions
- Prepare the journal entries for the following transactions to consolidate financial statements from fund-level statements to government-wide statements. 1...Compensated absences earned during the year was $225. 2....At the beginning of the year, long term liabilities was $2,200. 3....During the year, new long-term liabilities were incurred for $275.arrow_forwardPrepare the journal entries for the following transactions to consolidate financial statements from fund-level statements to government-wide statements. 1....An internal service fund had a loss of $50 2.....An internal service fund had interest expense of $30arrow_forwardWhat are the differences between a cash flows statement prepared for a governmental electric utility versus one prepared for an investor-owned utility? What are five types of information must be presented in Management’s Discussion and Analysis (MD&A)? Which financial statement is each type of information derived from, if any? GASB Statement No. 34 mandates that the government reconcile total governmental fund balances per the fund balance sheet with net assets of governmental activities per the government-wide statements. What are likely to be the two largest reconciling items for most major cities? Why?arrow_forward
- prepare the journal entries for the following transactions to consolidate financial statements from fund-level statements to government-wide statements. 1..At the beginning of the year, capital assets were $3,500. 2..During the year, capital assets were purchased for $2,000 3....During the year, capital assets with a book value of $250 were sold for $500arrow_forwardIndicate (i) how each of the following transactions impacts the fund balance of the general fund, and its classifications, for fund financial statements and (ii) what impact each transaction has on the net position balance of the Government Activities on the government-wide financial statements.a. Issue a five-year bond for $6 million to finance general operations.b. Pay cash of $149,000 for a truck to be used by the police department.c. The fire department pays $17,000 to a government motor pool that services the vehicles of only the police and fire departments. Work was done on several department vehicles. d. Levy property taxes of $75,000 for the current year that will not be collected until four months into the subsequent year.e. Receive a grant for $7,000 that must be returned unless the money is spent according to the stipulations of the conveyance. That is expected to happen in the future.f. Businesses make sales of $20 million during the current year. The…arrow_forwardGovernmental funds report current financial resources. However, governmental funds alsoreport some current assets which are not financial resources. Which of the assets below is acurrent financial resource at December 31, 2022? A. Property taxes receivable expected to be collected between March 2 and December 31, 2023. B.Office supplies that will be used in 2023. C.A and B. D.Neither A nor B.arrow_forward
- 2. The following information is available for the preparation of the government-wide financial statements for the City of Southern Springs as of April 30, 2024: Cash and cash equivalents, governmental activities $ 440,000 Cash and cash equivalents, business-type activities 926,000 Receivables, governmental activities 522,000 Receivables, business-type activities 1,542,000 Inventories, business-type activities 604,000 Capital assets, net, governmental activities 15,680,000 Capital assets, net, business-type activities 8,246,000 Accounts payable, governmental activities 754,000 Accounts payable, business-type activities 649,000 General obligation bonds, governmental activities 6,080,000 Revenue bonds, business-type activities 3,726,000 Long-term liability for compensated absences, governmental activities 417,000 Required: From the preceding information, prepare a Statement of Net Position for the City of Southern Springs as of April 30, 2024. Assume that…arrow_forwardWhen preparing government-wide financial statements, the modified accrual based governments funds are adjusted. Please show the adjustments (in journal entry form with debits and credits) that would be made for the following General Fund transactions when converting to the government-wide statements: 3. $10,000 in interest was due and paid on that revenue bond during the fiscal year ($5,000 due every six months).arrow_forwardes The following information is available for the preparation of the government-wide financial statements for the City of Southern Springs as of April 30, 2024: Cash and cash equivalents, governmental activities Cash and cash equivalents, business-type activities Receivables, governmental activities Receivables, business-type activities Inventories, business-type activities Capital assets, net, governmental activities Capital assets, net, business-type activities Accounts payable, governmental activities Accounts payable, business-type activities General obligation bonds, governmental activities Revenue bonds, business-type activities Long-term liability for compensated absences, governmental activities Required: $ 610,000 1,283,000 726,000 2,138,000 842,000 21,852,000 11,493,000 1,044,000 904,000 6,140,000 5,188,000 586,000 From the preceding information, prepare a Statement of Net Position for the City of Southern Springs as of April 30, 2024. Assume that outstanding bonds were…arrow_forward
- Entity A is a newly formed government agency. Entity A's transactions and events during the calendar year 20xl are follows: a. Received appropriation of 500,000 b. Received allotment of 450,000. c. Incurred obligations amounting to 440,000. d. Received Notice of Cash Allocation of 430,000. e. Accrued P80,000 salaries through granting, and liquidation, of cash advance. The breakdown of the salaries is as follows: Salaries and Wages = 70,000 Personal Economic Relief Allowance (PERA) = 10,000 Gross Compensation = 80,000 Withholding Tax = 18,000 GSIS = 4,000 Pag-IBIG = 1,000 PhilHealth = 2,000 Total Salary Deductions = 25,000 f. Received delivery of purchased office equipment worth 200,000. The equipment has an estimated useful life of 5 years and a 5% residual value. Entity A recognizes monthly depreciation every end of the month using the straight line method. The equipment is acquired on January 1, 20x1. g. Paid the accounts payable from the purchase of equipment in (f)…arrow_forwardCash of $20,000 is transferred from the general fund to the enterprise fund to pay for work that was done. What is reported on the government-wide financial statements? Choose the correct.a. No reporting is made.b. Other Financing Sources increase by $20,000; Other Financing Uses increase by $20,000.c. Revenues increase by $20,000; Expenditures increase by $20,000.d. Revenues increase by $20,000; Expenses increase by $20,000.arrow_forward3. Which of the following accounts appears on both the interim and year-end balance sheets of the General Fund? a) Revenues. b) Reserve for encumbrances. c) Encumbrances. d) Appropriations. 4. Which of the following would be considered a general capital asset? a) A vehicle purchased from general fund revenues. b) A vehicle purchased and maintained by an enterprise fund. c) A computer purchased from revenues of an internal service fund and used by the supplies department. d) Real estate purchased with the assets of a pension trust fund. 5. A machine is sold for $500. It had originally been purchased for $8,000 using GF It is fully depreciated. Gain on sale of equipment account revenues. should be recorded in the General fund journal as: a) Debit in 500S. b) Credit in 500$. c) Credit in 7500S. d) Gain on sale of equipment account will not recorded in general fund journal. Question Three: mini casesarrow_forward
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