Chapter 17 – Governmental Entities: Introduction and General Fund Accounting
17–29
P17-15 (continued)
3.
ENCUMBRANCES
1,800,000
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
1,800,000
Record purchase orders.
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
1,773,000
ENCUMBRANCES
1,773,000
Reverse reserve for items received.
Expenditures
1,788,000
Vouchers Payable
1,788,000
Actual expenditures for items received.
Vouchers Payable
1,793,000
Cash
1,793,000
Vouchers paid.
4.
Due from Central Stores Fund
13,000
Other Financing Uses – Transfer Out
37,000
Cash
50,000
Other cash payments and transfer.
Pine Ridge
General Fund
Preclosing Trial Balance
December 31, 20X2
Debit
Credit
Cash
$ 191,000
Property Tax Receivable – Delinquent
93,000
Allowance for Uncollectibles – Delinquent
$ 16,000
Due from Central Stores Fund
13,000
Vouchers Payable
26,000
Due to Motor Pool Fund
10,000
Fund Balance – Unassigned
161,000
Property Tax Revenue
1,586,000
Sales Tax Revenue
284,000
Miscellaneous Revenue
39,000
Expenditures
1,788,000
Other Financing Uses – Transfer Out
37,000
ESTIMATED REVENUES CONTROL
1,877,000
APPROPRIATIONS CONTROL
1,840,000
ESTIMATED OTHER FINANCING USES– TRANSFER
OUT
37,000
ENCUMBRANCES
48,000
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
48,000
$4,047,000
$4,047,000
Chapter 17 – Governmental Entities: Introduction and General Fund Accounting
P17-15 (continued)
Closing entries:
APPROPRIATIONS CONTROL
1,840,000
ESTIMATED OTHER FINANCING
USES – TRANSFER OUT
37,000
ESTIMATED REVENUES CONTROL
1,877,000
Close budgetary accounts.
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
48,000
ENCUMBRANCES
48,000
Close remaining encumbrances.
Fund Balance – Unassigned
48,000
Fund Balance – Assigned for
Encumbrances
48,000
Reserve fund balance for outstanding purchase orders.
Property Tax Revenue
1,586,000
Sales Tax Revenue
284,000
Miscellaneous Revenue
39,000
Expenditures
1,788,000
Other Financing Uses – Transfer Out
37,000
Fund Balance – Unassigned
84,000
Close operating statement accounts.
Pine Ridge
General Fund
Balance Sheet
December 31, 20X2
Assets
Cash
$191,000
Property Tax Receivables – Delinquent
$ 93,000
Less: Allowance for Uncollectibles – Delinquent
(16,000)
77,000
Due from Central Stores Fund
13,000
Total Assets
$281,000
Liabilities and Fund Balance
Vouchers Payable
$ 26,000
Due to Motor Pool Fund
10,000
Fund Balance:
Spendable:
Assigned to:
General Government Services
$ 48,000
Unassigned
197,000
245,000
Total Liabilities and Fund Balance
$281,000
Chapter 17 – Governmental Entities: Introduction and General Fund Accounting
17–31
P17-15 (continued)
e.
Pine Ridge
General Fund
Statement of Revenues, Expenditures, and Changes
in Fund Balance
For Fiscal Year Ended December 31, 20X2
Revenue:
Property Taxes
$1,586,000
Sales Taxes
284,000
Miscellaneous
39,000
Total Revenue
$1,909,000
Expenditures:
Current
$1,746,000
Capital Outlay – Furniture
Total Expenditures
42,000
$1,788,000
Excess of Revenue over Expenditures
$ 121,000
Other Financing Sources (Uses):
Transfer Out
(37,000)
Change in Fund Balance
$ 84,000
Fund Balance, January 1, 20X2
161,000
Fund Balance, December 31, 20X2
$ 245,000
[Note that the $42,000 expenditure for the office furniture capital outlay is reported
separately. The theoretical support for this is that the expenditure will also benefit future
periods. Some governmental entities report capital outlays made in the general fund with
current expenditures because current financial resources were expended. Some
governments integrate capital outlay expenditures into the appropriate functional
categories (e.g., fire protection, government administration, or streets and highways)
rather than separately report the expenditures for capital outlays. The choice of reporting
alternative for the general fund is up to the governmental entity because the total
expenditures will be the same regardless of how or where the capital outlay is reported.]
Chapter 17 – Governmental Entities: Introduction and General Fund Accounting
17–32
P17-16 Matching Governmental Terms with Descriptions
1.
J
2.
I
3.
H
4.
G
5.
M
6.
Q
7.
R
8.
E
9.
N
10.
D
11.
F
12.
P
13.
A
14.
B
15.
L
16.
C
Chapter 17 – Governmental Entities: Introduction and General Fund Accounting
17–33
P17-17 Identification of Governmental Accounting Terms
1. Government-wide financial statements
2. The Governmental Accounting Standards Board (GASB)
3. A fund
4. Interfund services provided or used
5. Internal service and enterprise funds
6. Infrastructure assets
7. Agency and trust funds
8. Modified accrual basis
9. Flow of total economic resources
10. The property tax levy
11. The general, special revenue, capital projects, debt service funds and permanent
funds
12. The allowance for uncollectible property taxes
13. Budgetary fund balance – unassigned
14. Encumbrances
15. The consumption method
16. Other financing uses – transfer out
17. Expenditures
18. Fund balance – unassigned
19. Expenditures
20. Appropriations
21. Nonlapsing method
Chapter 17 – Governmental Entities: Introduction and General Fund Accounting
17–34
P17-18 Questions on General Fund Entries [AICPA Adapted]
1. D
2. C
3. C
4. C
5. N
6. D
7. N
8. C
9. C
10. N
11. D
12. C
13. N
14. N
15. N
16. C
17. D
18. D
19. C
20. N
21. N
22. N
23. C
24. D
25. N
26. C
27. D
28. D
29. D
30. C
31. D
32. C
33. D
34. N
35. N
36. C
37. D
38. D
39. C
Chapter 17 – Governmental Entities: Introduction and General Fund Accounting
17–35
P17–19 Questions on Fund Items [AICPA Adapted]
a.
16
$700,000 = $630,000 of current year’s taxes collected plus $70,000 of 20X1
taxes expected to be collected within 60 days after the end of the year
b.
8
$170,000 = $80,000 of the restricted grant that has been expended, plus
$50,000 in fines plus $40,000 in fees
c.
3
$50,000 = the fair and present value of the lease agreement
d.
6
$140,000 = the capital outlay for the new police vehicles
e.
2
$30,000 = the amount of the transfer in received by the debt service fund and
then expended for interest for the year
f.
18
$760,000 = $260,000 for governmental services and $500,000 for public
safety and welfare services. For this problem, the capital outlay of $140,000
was separately reported in the listing of expenditures. In practice, some
governmental entities include capital outlays in the general fund as an
expenditure under the appropriate functional activity. However, in a capital
projects fund, capital outlays are generally separately reported in the
expenditures reported on the statement of revenues, expenditures, and
changes in fund balances.
g.
7
$150,000 = the amount of the state grant. The bond proceeds would be
reported as an other financing source.
h.
13
$500,000 = the amount of the expenditures in the capital projects fund
i.
11
$345,000 = Fund Balance-Unassigned on 1/1/X1
$
110,000
Add: Grant revenues
$150,000
Other financing sources
610,000
760,000
Less: Expenditures
$500,000
Fund balance – assigned
for encumbrances
25,000
(525,000)
Fund Balance – Unassigned
on 12/31/X1
$345,000
Chapter 17 – Governmental Entities: Introduction and General Fund Accounting
17–36
P17-20 Identifying Types of Revenue Transactions
1. B
2. E
3. D
4. A
5. B
6. E
7. C
8. D
9. C
10. D
11. C
12. D
13. D
14. D