Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 2, Problem 20EP
Fund Balance Classifications. (LO2-3) Section A provides a list of the results of Allentown’s analysis of its governmental fund balances at its fiscal year end. Section B provides a list of the possible classifications for reporting the items listed in Section A.
Section A
_____ 1. At year-end a special revenue fund has a $50,000 fund balance on which there are no constraints.
_____ 2. Allentown has a $1,000,000 emergency reserve fund it set aside. According to the town ordinance, funds can only be used from this fund with approval of two-thirds of the governing body, which is the town council.
_____ 3. Allentown determined that the General Fund has $22,000 in inventory it should report on its fund financial statements.
_____ 4. Allentown issued bonds that sold at a premium. Using the authority allowed her by the town council, the city manager made the decision to set aside the $100,000 premium to pay the principal on the debt when it comes due in a future period.
_____ 5. The federal government has provided a grant for emergency housing assistance that can only be used for low-income families. Allentown determined $250,000 of the grant funds remained at year-end.
_____ 6. Allentown had a balance in its prepaid insurance account of $464,000 at the end of the fiscal year.
_____ 7. At the end of the reporting period, Allentown’s General Fund statement of revenues, expenditures, and changes in fund balances reported a net change in fund balances of $154,238.
_____ 8. Allentown’s mayor indicated that he was setting aside $25,000 of funds for the future purchase of land for a town park.
_____ 9. The Allentown council passed an ordinance requiring that 5% of the town’s sales tax revenue be set aside for economic development; this year that amount was $24,650.
_____ 10. The capital projects fund ended the reporting period with a negative fund balance.
Section B
- a. Nonspendable
- b. Restricted
- c. Committed
- d. Assigned
- e. Unassigned
Required
Using the choices provided in Section B, identify under which fund balance classification Allentown should report each of the dollar amounts listed in Section A.
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Chapter 2 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Explain the modified accrual basis of accounting....Ch. 2 - Prob. 5QCh. 2 - What is the primary reason government entities use...Ch. 2 - What is meant by the terms deferred outflows of...Ch. 2 - How do expenses and expenditures differ?Ch. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Accounting and Reporting Principles. (LO2-3) The...Ch. 2 - Prob. 12CCh. 2 - Which of the following statements is true...Ch. 2 - Prob. 16.2EPCh. 2 - Prob. 16.3EPCh. 2 - The measurement focus and basis of accounting that...Ch. 2 - Which of the following amounts that are identified...Ch. 2 - Prob. 16.6EPCh. 2 - Prob. 16.7EPCh. 2 - Under the modified accrual basis of accounting a....Ch. 2 - Prob. 16.9EPCh. 2 - A certain city reports the following year-end...Ch. 2 - Prob. 16.11EPCh. 2 - Prob. 16.12EPCh. 2 - Prob. 16.13EPCh. 2 - Prob. 16.14EPCh. 2 - Which of the following fund(s) will generally be...Ch. 2 - Prob. 17EPCh. 2 - Prob. 18EPCh. 2 - Matching Funds with Transactions. (LO2-3) Choose...Ch. 2 - Fund Balance Classifications. (LO2-3) Section A...Ch. 2 - Prob. 21EPCh. 2 - Major Funds. (LO2-4) At the end of the fiscal...
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