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16–19 Ch. 16—Problems
PROBLEM 16-7
(1) b, f
(3) d, b
PROBLEM 16-8
(1) Entries in the Internal Service Fund:
Expenses—Claims and Judgments ................................................ 4,000,000
Cash ......................................................................................... 2,300,000
(2) Entries in General Fund:
Expenditures ................................................................................... 3,200,000
Cash ......................................................................................... 3,200,000
To record premium transferred to insurance internal
service fund.
(3) If the county elects to use a general fund for its self-insurance activity, revenue can be rec-
ognized from other funds up to the amount of actual losses incurred ($4,000,000) or 80% of
PROBLEM 16-9
(1) General Fixed Assets Account Group (6) Private-Purpose Trust
(3) General Long-Term Debt Account Group (8) Agency Fund
(5) General Long-Term Debt Account Group (10) Special Revenue Fund
Ch. 16—Problems 16–20
PROBLEM 16-10
Fund or
Date Account Group Entry
Jan. 2 Capital Estimated Revenues ......................................... 350,000
Projects Estimated Other Financing Sources .................. 550,000
Projects Due from General Fund ..................................... 50,000
Fund Revenues ...................................................... 100,000
Other Financing Sources .............................. 50,000
To record amounts receivable.
General Other Financing Uses ........................................ 50,000
Fund Due from General Fund ................................ 50,000
To record amounts received.
General Due to Capital Projects Fund ............................ 50,000
Fund Cash .............................................................. 50,000
To record cash transfer.
Problem 16-10, Continued
Fund or
Date Account Group Entry
Feb. 1 Capital Cash .................................................................. 250,000
Projects Special Assessments Receivable—Current 250,000
Fund To record premium due.
1 General Amount to Be Provided for Payment of Special
Long-Term Assessment Serial Bonds ............................. 500,000
Debt Account Special Assessment Bonds Payable ........ 500,000
Group To record commitment on guaranteed
projects fund.
Sept. 1 Debt Expenditures ..................................................... 15,000
Service Cash .............................................................. 15,000
Fund To record interest payment.
Dec. 15 Capital Fund Balance—Assigned for Encumbrances .... 595,000
Problem 16-10, Concluded
Fund or
Date Account Group Entry
Dec. 29 Capital Cash .................................................................. 416,600
Projects Investments ................................................... 400,000
Cash .............................................................. 76,600
To record voucher payment.
30 Debt Special Assessments Receivable—Current ...... 250,000
Service Special Assessments Receivable—
Fund Noncurrent ................................................ 250,000
16–23 Ch. 16—Problems
PROBLEM 16-11
City of Boniville Internal Service Fund
Statement of Cash Flows
Cash flows from operating activities:
Collections (for services) from other funds ................................................... $ 6,000
Wages and salaries paid .............................................................................. (3,100)
Purchase of supplies .................................................................................... (1,650)
Net cash provided by operating activities ..................................................... $ 1,250
Cash flows from capital and related financing activities:
Proceeds of revenue bonds ......................................................................... $ 900
Proceeds from sale of capital assets ........................................................... 23
Purchase of capital assets ........................................................................... (900)
Interest paid on long-term debt .................................................................... (150)
Net cash used for capital and related financing activities ............................ $ (127)
Cash flows from investing activities:
Net increase in cash .......................................................................................... $ 781
Cash on hand beginning of year .................................................................. 122
Cash on hand end of year ............................................................................ $ 903
PROBLEM 16-12
(1) (a) Inventory of Materials and Supplies .......................................... 72,000
Vouchers Payable ............................................................... 72,000
To record purchases on account.
Problem 16-12, Concluded
(d) Operating Expenses ................................................................. 40,000
Cash ................................................................................... 40,000
To record payment of utility charge.
(e) Operating Expenses ................................................................. 139,500
Allowance for Depreciation—Building ................................. 6,500
Allowance for Depreciation—Computer Equipment ............ 133,000
To record depreciation.
(g) Cash ......................................................................................... 506,000
Due from General Fund
($140,000 + $392,000 – $136,000)............................... 396,000
Due from Water and Sewer Fund ....................................... 84,000
Due from Special Revenue Fund ($42,000 – $16,000) ...... 26,000
To record collections.
(2) Closing Entries:
Operating Revenues ................................................................. 518,000
Operating Expenses
16–25 Ch. 16—Problems
PROBLEM 16-13
(1) Landfill Expense ............................................................................. 500,000
Landfill Closure and Post-Closure Care Liability ........................ 500,000
(2) Landfill Expense ............................................................................. 555,172
Landfill Closure and Post-Closure Care Liability ...................... 555,172
(3) If the landfill is accounted for in the general fund, then the liability would be recognized in
PROBLEM 16-14
Bedrock City’s Employees’ Retirement System Fund
Statement of Plan Net Position
As of June 30, 2018
Assets
Cash and short-term investments .......................................................... $ 38,000
Receivables:
Employer .......................................................................................... $4,000
Liabilities
Refunds payable .................................................................................... $1,000
Annuities payable ................................................................................... 3,000
Total liabilities................................................................................... $ 4,000
Net position held in trust for pension benefits ........................................ $540,000
Problem 16-14, Concluded
Bedrock City’s Employees’ Retirement System Fund
Statement of Changes in Plan Net Position
For Year Ended June 30, 2018
Additions
Contributions:
Employer ($16,000 + $4,000) .......................................................... $20,000
Plan members .................................................................................. 32,000
Total contributions ...................................................................... $ 52,000
Investment income:
Net appreciation (depreciation) in fair value ..................................... $13,500
Interest and dividend income ($30,000 + $5,000) ............................ 35,000
Net investment income ..................................................................... 48,500
Total additions ............................................................................ $100,500
16–27 Ch. 16—Problems
PROBLEM 16-15
Tilburg County Tilburg County Reed City Newport Township
Accounts Tax Agency Fund General Fund General Fund General Fund
Dr.
Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Taxes Receivable—Current ............................... ............... ................ 3,600,000 ............... 1,800,000 ............... 600,000 ............
To record taxes to be collected.
Cash ................................................................... 1,440,000 ................ ................ ............... ............... ............... ............ ............
Taxes Receivable for Other Funds ............... ............... 1,440,000 ................ ............... ............... ............... ............ ............
To record tax collection.
Due to Other Governmental Units ...................... 1,440,000 ................ ................ ............... ............... ............... ............ ............
Cash .............................................................. ............... 1,440,000 ................ ............... ............... ............... ............ ............
To record cash distribution.
Expenditures ...................................................... ............... ................ ................ ............... 8,640 ............... 2,880 ............
Cash ................................................................... ............... ................ 875,520* ............... 423,360* ............... 141,120* ............
Taxes Receivable—Current .......................... ............... ................ ................ 864,000 ............... 432,000 ............ 144,000
Revenues ...................................................... ............... ................ ................ 11,520 ............... ............... ............ ............
To record cash received by general funds.
*Calculation of cash distribution:
Tilburg County Reed City Newport Township
General Fund
General Fund General Fund
Cash collected ................................................... $1,440,000 $1,440,000 $1,440,000
PROBLEM 16-16
Fund or
Account Group Journal Entry
(1) General Estimated Revenues ............................................. 4,500,000
(2) Special Estimated Revenues ............................................. 264,500
(3) General Taxes Receivable—Current .................................. 3,000,000
(4) Capital Cash ...................................................................... 985,000
Projects Expenditures .......................................................... 5,000
Fund Other Financing Uses ............................................ 10,000
(5) Capital Encumbrances ....................................................... 1,000,000
Problem 16-16, Concluded
Fund or
Account Group Journal Entry
(6) Capital Fund Balance—Assigned for Encumbrances ........ 1,000,000
Projects Encumbrances .................................................. 1,000,000
Fund To liquidate encumbrances.
(7) General Other Financing Uses ............................................ 100,000
Fund Cash .................................................................. 100,000
(8) General Land ....................................................................... 500,000
(9) Special Cash ...................................................................... 205,000
(10) Special Expenditures .......................................................... 410,000
PROBLEM 16-17
Village of Fay
Transactions for Fiscal Year Ended June 30, 2019
Trans- Fund or
action Account Account Title Amount
No. Group and Explanation Debit Credit
(1) General Estimated Revenues ........................................... 400,000
(2) General Taxes Receivable—Current ................................ 390,000
Fund Allowance for Uncollectible Current
Taxes ......................................................... 7,800
Revenues ....................................................... 382,200
(5) Capital Estimated Other Financing Sources ................... 3,000
Projects Estimated Revenues ........................................... 72,000
16–31 Ch. 16—Problems
Problem 16-17, Continued
Trans- Fund or
action Account Account Title Amount
No. Group and Explanation Debit Credit
(6b) Capital Cash ................................................................... 75,000
Projects Special Assessments Receivable .................. 72,000
Fund Due from General Fund .................................. 3,000
(6c) General Other Financing Uses ......................................... 3,000
Fund Due to Capital Projects Fund ......................... 3,000
(7c) General Improvements Other than Buildings ................... 75,000
Fixed Assets Investments in General Fixed Assets—
Account Capital Projects Fund ................................ 75,000
Group To record improvements.
(8) Internal Inventory ............................................................. 1,900
Service Cash or Vouchers Payable............................. 1,900
Fund To record purchase of supplies.
Problem 16-17, Concluded
Trans- Fund or
action Account Account Title Amount
No. Group and Explanation Debit Credit
(10a) Capital Cash ................................................................... 500,000
Projects Other Financing Sources................................ 500,000
Fund To record issuance of bonds.
(10b) General Amount to Be Provided for Payment
Long-Term of Bonds ......................................................... 500,000
Debt Account General Obligation Bonds Payable ............ 500,000
Group To record liability.
PROBLEM 16-18
(1) $104,500 (6) $104,500
(2) $30,000 (7) $386,000 ($364,000 + $22,000)
(4) $236,000 (9) $181,000
16–33 Ch. 16—Problems
PROBLEM 16-19
(1) N (9) Y (16) $5,600,000
(3) Y (11) Y (18) $1,000,000
(6) N (14) N (21) $800,000
(7) N (15) Y (22) $2,032,000 ($900,000 + $52,000 + $1,080,000)
PROBLEM 16-20
(1)
Trans- Fund or
action Account Account Title Amount
No. Group and Explanation Debit Credit
(a) Capital Estimated Other Financing Sources ................... 600,000
Projects Fund Appropriations ................................................ 600,000
(b) Capital Expenditures ....................................................... 150,000
Projects Fund Cash ............................................................... 50,000
Vouchers Payable .......................................... 100,000
Problem 16-20, Continued
Trans- Fund or
action Account Account Title Amount
No. Group and Explanation Debit Credit
(e) Capital Encumbrances .................................................... 400,000
Projects Fund Fund Balance—Assigned for Encumbrances . 400,000
(f) Capital Fund Balance—Assigned for Encumbrances ..... 200,000
Projects Fund Encumbrances ............................................... 200,000
Capital Expenditures ....................................................... 200,000
Projects Fund Cash ............................................................... 200,000
(i) Capital Fund Balance—Assigned for Encumbrances ..... 200,000
Projects Fund Encumbrances ............................................... 200,000
Capital Expenditures ....................................................... 210,000
Projects Fund Cash ............................................................... 210,000
(j) Capital Cash ................................................................... 12,000
Projects Fund Revenues ....................................................... 12,000
(2) Closing and Adjusting Entries:
Fund or Account Title Amount
Account Group and Explanation Debit Credit
Problem 16-20, Concluded
Fund or Account Title Amount
Account Group and Explanation Debit Credit
(Transfer Interfund Transfers-Out ............................................ 2,000
residual equity Cash ..................................................................... 2,000
to debt Fund Balance—Restricted ........................................ 2,000
(3) Mountain View
Statement of Revenues, Expenditures,
and Changes in Fund Balance
For Year Ended December 31, 2018
Library Construction Project
Revenues ..................................................................................................... $ 12,000
Expenditures ................................................................................................ 560,000
Excess (deficiency) of revenues over expenditures ............................... $(548,000)
Other financing sources (uses):
