This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 18 - Governmental Entities: Special Funds and Government-Wide Financial Statements
Copyright © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded,
distributed, or posted on a website in whole or part.
SOLUTIONS TO EXERCISES
E18-1 Multiple-Choice Questions on Government Financial Reporting
1. a
2. d
3. b
4. a
5. a
6. b
7. a – $8,839,000 = assets of $14,839,000 minus liabilities of $6,000,000
8. c – $7,150,000 = capital assets (net) of $12,500,000 minus long-term debt of
9. c – $1,035,000 = net position of $8,839,000 minus $7,150,000 minus $654,000
10. a – (answers b, c, and d each include a fiduciary fund which is not a major fund)
11. d
12. c
Chapter 18 - Governmental Entities: Special Funds and Government-Wide Financial Statements
E18-2 Multiple-Choice Questions on Governmental Funds [AICPA Adapted]
1. d
2. b
3. a
4. c
5. c
6. b
E18-3 Multiple-Choice Questions on Proprietary Funds [AICPA Adapted]
1. b
2. d
3. d
4. b
5. c
6. c – Prepaid insurance would be reported as an asset.
7. b
8. c
9. c
Chapter 18 - Governmental Entities: Special Funds and Government-Wide Financial Statements
E18-4 Multiple-Choice Questions on Various Funds
1.
c –
The additions - investment earnings include the $50,000 of dividends and the
$35,000 of interest earned. The contribution is reported as an addition -
contributions.
2.
a –
The entries in the trust fund to record the resources spent would appear as
follows:
Deductions - Benefits
75,000
Vouchers Payable
75,000
Vouchers Payable
75,000
Cash
75,000
3.
d –
4.
d –
Income is determined as follows:
Revenue – Charges for Services
$100,000
Operating Expenses
(45,000)
Depreciation Expense
(40,000)
Interest Expense
(5,000)
Income
$ 10,000
5.
c –
The assets at June 30, 20X7 appear as follows:
Cash
$ 96,000
Due from Other Funds
7,000
Computer Equipment (net)
610,000
Total Assets
$713,000
6.
b –
This is an example of an interfund services provided or used transaction. The
general fund would debit expenditures.
7.
a –
This is an example of an interfund services provided or used transaction. The
enterprise fund would debit operating expenses.
8.
b –
The net position would be for the $600,000 transfer in plus the $10,000 of
income for the period.
Trusted by Thousands of
Students
Here are what students say about us.
Resources
Company
Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.