Chapter 18 – GOVERNMENTAL ENTITIES: SPECIAL FUNDS AND GOVERNMENT–WIDE FINANCIAL
STATEMENTS
18–10
E18-2
LO 18-1,
LO 18-3
25 min.
E
Multiple-Choice Items on Governmental Funds [AICPA Adapted]
Six multiple-choice questions on the general theory of accounting for the
different funds that are used by a governmental entity.
E18-3
LO 18-6,
LO 18-8
25 min.
E
Multiple-Choice Items on Proprietary Funds [AICPA Adapted]
Nine multiple-choice questions requiring evaluation of the journal entry accounts
and financial statements that are used in the proprietary funds.
E18-4
LO 18-8,
LO 18-9
30 min.
M
Multiple-Choice Items on Various Funds [AICPA Adapted]
Eight multiple-choice questions requiring the computation of journal entry
amounts and evaluations of the types of financial statement disclosure required
for events affecting various funds and account groups.
E18-5
LO 18-11
30 min.
M
Multiple-Choice Questions on Financial Reporting Issues for
Governmentwide and Fund-Based Financial Statements
Eight multiple-choice questions on various financial reporting issues for
government-wide and fund financial statements.
E18-6
LO 18-2
30 min.
M
Capital Projects Fund Entries and Statements
Students are required to provide journal entries for a series of events in a capital
projects fund, including the transfer of a premium on bonds issued, the
completion of the project, and the closing of the capital projects fund. A
statement of revenue, expenditures, and changes in fund balance is also required.
E18-7
LO 18-3
45 min.
M
Debt Service Fund Entries and Statements
This exercise is related to E18-6. Students must make the associated entries in
the debt service fund that are related to the project. A statement of revenue,
expenditures, and changes in fund balance is also required in this exercise.
E18-8
LO 18-6,
LO 18-7
50 min.
M
Enterprise Fund Entries and Statements
The beginning trial balance is presented and students must make the journal
entries for the fiscal year. The exercise also requires students to prepare a
statement of net assets, a statement of revenues, expenses, and changes in fund
net position, and a statement of cash flows for the enterprise fund.
E18-9
LO 18-1
25 min.
M
Interfund Transfers and Transactions
This exercise requires journal entries in the general fund and the related fund for
four interfund transactions or transfers. Appropriate closing entries in the
affected funds must also be prepared.
Chapter 18 – GOVERNMENTAL ENTITIES: SPECIAL FUNDS AND GOVERNMENT–WIDE FINANCIAL
STATEMENTS
18–11
E18-10
LO 18-8
45 min.
M
Internal Service Fund Entries and Statements
Students must prepare journal entries for a city printing shop and then prepare
the balance sheet, a statement of revenue, expenses, and changes in net assets,
and a statement of cash flows for the year.
E18-11
LO 18-11
20 min.
M
Multiple-Choice Questions on Governmentwide Financial Statements
Ten multiple-choice questions relate to governmental financial statements and
financial statement items.
P18-12
LO 18-1
45 min.
M
Adjusting Entries for General Fund [AICPA Adapted]
The preclosing trial balance for the general fund is provided with several errors
including the failure to separate the general fixed assets and general long-term
debt from the general fund. Students must prepare adjusting entries to correct the
general fund records and the two account groups.
P18-13
LO 18-1,
LO 18-2,
LO 18-3,
LO 18-8,
LO 18-9
75 min.
H
Entries for Funds [AICPA Adapted]
Students must evaluate eleven transactions that occur during a year and must
prepare journal entries in the funds or account groups affected by the events.
Included are a donation of securities from a resident, a special assessment for a
capital project, and issuance of bonds to construct a new village hall.
P18-14
LO 18-11
75 min.
H
Entries to Adjust Account Balances [AICPA Adapted]
An auditor examining the general fund’s trial balance is confronted with many
errors and misclassifications. Additional information is presented and students
must prepare the adjusting and correcting entries necessary to correct the general
fund and to establish other required funds or account groups. The appropriations
are nonlapsing for a year after the end of the fiscal year in which they are made.
P18-15
LO 18-2
45 min.
M
Capital Projects Fund Entries and Statements
Students are asked to prepare entries in several funds for transactions emanating
from capital projects. Also, the financial statements for the capital projects fund
are required.
P18-16
LO 18-2,
LO 18-10
25 min.
M
Recording Entries in Various Funds [AICPA Adapted]
Journal entries must be prepared for various transactions, several of which affect
several funds or account groups.
Chapter 18 – GOVERNMENTAL ENTITIES: SPECIAL FUNDS AND GOVERNMENT–WIDE FINANCIAL
STATEMENTS
18–12
P18-17
LO 18-2,
LO 18-3,
LO 18-6,
LO 18-8,
LO 18-10
20 min.
E
Matching Items Involving Various Funds
Students are presented with ten transactions, some of which are recorded in just
one fund, and several that require entries in more than one fund.
P18-18
LO 18-1,
LO 18-2,
LO 18-3,
LO 18-11
40 min.
M
Questions on Fund Transactions [AICPA Adapted]
Information regarding a city’s transactions and balances are provided as of the
end of the current fiscal period. Students must answer ten questions regarding
transactions and fund balances.
P18-19
LO 18-6,
LO 18-7
30 min.
M
Matching Items Involving the Statement of Cash Flows for a Proprietary
Fund
Students must match fifteen transactions with the category in which they would
each be disclosed on the statement of cash flows of the proprietary fund.
P18-20
LO 18-2,
LO 18-3
30 min.
M
Matching Items Involving the Statement of Revenues, Expenditures, and
Changes in Fund Balance for a Capital Projects Fund and a Debt Service
Fund
Students must match thirteen transactions and events with the category in which
they would each be disclosed on the operating statements of the capital projects
fund and the debt service fund.
P18-21
LO 18-1
through
LO 18-4,
LO 18-6
through
LO 18-8
40 min.
M
Matching Items on Fund Transactions [AICPA Adapted]
Information regarding ten transactions and ten funds and accounts are provided
for a municipality that is utilizing encumbrance accounting is provided. Students
are required to select the appropriate accounts affected by each transaction and
determine whether the accounts are debited. In addition, students are required to
select the appropriate accounting and recording of ten funds and accounts.
P18-22
LO 18-5
30 min.
M
Major Fund Tests
Assets, liabilities, revenues, and expenditures associated with eight different
funds are given. Students must determine which funds meet the major fund
reporting criteria consistent with GASB No. 34.
Chapter 18 – GOVERNMENTAL ENTITIES: SPECIAL FUNDS AND GOVERNMENT–WIDE FINANCIAL
STATEMENTS
18–13
P18-23
LO 18-12
40 min.
M
Reconciliation Schedules
Student must prepare the reconciliation schedule of the balance sheet of the
governmental funds to the statement of net position. They should also prepare a
reconciliation schedule of the statement of revenues, expenditures, and changes
in fund balance of governmental funds to the statement of activities.
P18-24
LO 18-11,
LO 18-12
25 min
M
True/False Statements
Students must assess the accuracy of 15 true/false statements relating to concepts
of governmental accounting.
P18-25
LO 18-5
20 min.
M
Determining Whether a Special Revenue Fund is a Major Fund
Based on information given in the problem, students must determine whether the
special revenue fund of a city should be classified as a major fund in the
financial statements.
P18-26
LO 18-11
40 min.
M
Preparation of a Statement of Net Position for a Governmental Entity
Information regarding the assets and liabilities of a city’s governmental and
business-type activities are given. Based on this information, students are
required to prepare a statement of net position as of the end of the fiscal period.
Chapter 18 – GOVERNMENTAL ENTITIES: SPECIAL FUNDS AND GOVERNMENT–WIDE FINANCIAL
STATEMENTS
18–14
OTHER RESOURCES
Chapter 18
Governmental Entities: Special Funds and Governmentwide Financial Statements
ACCOUNTING FOR CAPITAL PROJECTS FUNDS
Transactions:
1. A 10-year, 5% serial bond issue of $200 (face value) is sold at 104. The bond premium is
immediately transferred to the debt service fund.
2. The general fund agrees to transfer $10 to the capital project fund for construction costs.
3. A construction contract of $190 is awarded.
4. Construction is completed and vouchered at the actual cost of $195.
5. Expenditures of $14 not covered by the contract are vouchered.
6. A transfer of $10 is received from the general fund.
7. Vouchers totaling $209 are paid.
8. Closing entries.
9. The capital projects fund is terminated and any remaining resources are transferred to the
debt service fund.
Chapter 18 – GOVERNMENTAL ENTITIES: SPECIAL FUNDS AND GOVERNMENT–WIDE FINANCIAL
STATEMENTS
18–15
ACCOUNTING FOR CAPITAL PROJECTS FUNDS
(1)
Cash
208
Other Financing Sources
Bond Issue Proceeds
200
Other Financing Sources –
Bond Premium
8
Other Financing Use – Transfer Out
8
Cash
8
(2)
Due from General Fund
10
Other Financing Source –
Transfer In
10
(3)
ENCUMBRANCES
190
BUDGETARY FUND BALANCE
RESERVED FOR ENCUMBRANCES
190
(4)
Expenditures
195
Contracts Payable
195
BUDGETARY FUND BALANCE
RESERVED FOR ENCUMBRANCES
190
ENCUMBRANCES
190
(5)
Expenditures
14
Vouchers Payable
14
(6)
Cash
10
Due from General Fund
10
(7)
Vouchers Payable
14
Contracts Payable
195
Cash
209
(8)
Fund Balance – Unreserved
209
Expenditures
209
Other Financing Sources
Bond Issue
200
Other Financing Sources –
Bond Premium
8
Fund Balance – Unreserved
208
Operating Transfer In
10
Operating Transfer Out
8
Fund Balance – Unreserved
2
Chapter 18 – GOVERNMENTAL ENTITIES: SPECIAL FUNDS AND GOVERNMENT–WIDE FINANCIAL
STATEMENTS
18–16
(9)
Residual Equity Transfer
1
Cash
1
Fund Balance – Unreserved
1
Residual Equity Transfer
1
Chapter 18 – GOVERNMENTAL ENTITIES: SPECIAL FUNDS AND GOVERNMENT–WIDE FINANCIAL
STATEMENTS
18–17
ACCOUNTING FOR DEBT SERVICE FUNDS
Transactions:
(1) Budgetary information:
(A) Estimated revenues from property taxes for the year are $20.
(B) An appropriation is made for $30 which includes $20 for bond principal and $10
interest on the bonds.
(C) Estimated operating transfers in are budgeted as follows: $20 from general fund,
and $8 from the capital projects fund.
(2) A transfer of $8 is received from the capital projects fund for the bond premium. The
bond premium is available only for principal retirement.
(3) A transfer of $20 is received from the general fund.
(4) A total of $20 is collected from property tax levies.
(5) A total of $15 is invested in marketable securities.
(6) Income of $1 is received on investments.
(7) The year’s matured bond principal of $20 and matured bond interest payable of $10 is
expended and paid.
(8) Closing entries.
Chapter 18 – GOVERNMENTAL ENTITIES: SPECIAL FUNDS AND GOVERNMENT–WIDE FINANCIAL
STATEMENTS
18–18
ACCOUNTING FOR DEBT SERVICE FUNDS
(1)
ESTIMATED REVENUES CONTROL
20
ESTIMATED OTHER FINANCING SOURCE –
TRANSFER IN
28
APPROPRIATIONS CONTROL
30
BUDGETARY FUND BALANCE
UNRESERVED
18
(2)
Cash
8
Other Financing Source –
Transfer In
8
(3)
Cash
20
Other Financing Source –
Transfer In
20
(4)
Property Tax Receivable
20
Revenue – Property Tax
20
Cash
20
Property Tax Receivable
20
(5)
Investment
15
Cash
15
(6)
Cash
1
Interest Income
1
(7)
Expenditures
30
Matured Bonds Payable
20
Matured Interest Payable
10
Matured Bonds Payable
20
Matured Interest Payable
10
Cash
30
(8)
APPROPRIATIONS
30
BUDGETARY FUND BALANCE UNRESERVED
18
ESTIMATED REVENUES CONTROL
20
ESTIMATED OPERATING TRANSFER IN
28
Revenues-Property Tax
20
Interest Income
1
Other Financing Source –
Transfer In
28
Expenditures
30
Fund Balance – Unreserved
19