Question

Assume that Nolanville’s fiscal year ends on December 31.
1. Nolanville’s payroll for one of its departments is $15,000 per week. It pays its employees on the Thursday of the week following that in which the wages and salaries are earned. In 2015, December 31 fall son a Thursday. For the work week beginning Monday, December 28, 2015, and ending Friday, January 1, 2016, employees were paid on Thursday, January 7, 2016. For fiscal 2015, what amount should the city recognize as wage and salary expenditure/expense pertaining to the week ending Friday, January 1, 2016, in its fund statements and its government-wide statements?
Fund Statements . Government-wide Statements
a. $ 0 ................ $ 0
b. $9,000 ............. $9,000
c. $ 0 ................ $9,000
d. $9,000 ............... $ 0

2. In its fund financial statements, the city would recognize the receipt of a new computer (to be used for general administrative purposes) that it had ordered the previous year as an
a. Encumbrance
b. Expense
c. Expenditure
d. Asset

3. In 2015, city employees earned $1.4 million in sick leave that they did not take during the year. The city estimates that of this amount, $0.8 million will actually be paid to employees who take sick leave. Of the balance, $0.1 million will be paid to employees upon their retirement or resignation and $0.5 million will not have to be paid (since employees are limited in the number of sick days that they can carry over from one year to the next). The amount that the city should add to a fund-statement liability account as of year-end 2015 is
a. $0
b. $0.1 million
c. $0.8 million
d. $0.9 million

4. Assume the same facts as in the previous question. The amount that the city should add to the liability account in the government-wide statement of net position as of year-end 2015 is
a. $0
b. $0.1 million
c. $0.8 million
d. $0.9 million

5. In 2015 city employees earned $3.6 million in vacation pay that they did not use during the year. The city estimates that of this amount $2.8 million will be paid in 2016 (out of amounts budgeted for that year), $0.6 million will be paid in subsequent years, and the balance of $0.2 million will not have to be paid. The amount that the city should add to a fund-statement liability account as of year-end 2015 is
a. $0
b. $2.8 million
c. $3.4 million
d. $3.6 million

6. Assume the same facts as in the previous question. The amount that the city should add to the liability account in the government-wide statement of net position as of year-end 2015 is
a. $0
b. $2.8 million
c. $3.4 million
d. $3.6 million

7. Nolanville starts fiscal 2015 with $25,000 in supplies. During the year it orders $180,000 in supplies, receives $170,000, and uses $190,000. It accounts for inventories on the purchases basis. In its 2015 governmental fund financial statements it should report
Expenditure . Nonspendable Fund Balance
a. $180,000 ... $ 0
b. $170,000 .... $ 5,000
c. $190,000 .... $ 0
d. $190,000 .... $ 15,000

8. Assume the same facts as in the previous question. In its 2015 government-wide financial statements it should report
Expense ... Inventory
a. $170,000 . $ 0
b. $170,000 . $15,000
c. $190,000 . $ 5,000
d. $190,000 . $15,000

9. On December 1, 2015, Nolanville issued $10 million of 30-year, 8 percent bonds for $9.78 million, a price that reflects a semiannual yield of 4.1 percent. Interest ($400,000 per semiannual period) is payable on May 31 and November 30, beginning May 31, 2016. In its 2015 fund and government-wide statements, Nolanville should report an interest expenditure/expense of
Fund Statements . Government-wide Statements
a. $ 0 .... $ 0
b. $66,667 ... $ 66,667
c. $66,830 ... $ 66,830
d. $ 0 .... $ 66,830

10. In May 2017, Nolanville repaid $2 million of the bonds that it had issued in 2015. In its 2017 fund and government-wide statements, Nolanville should report an expenditure/expense relating to the repayment of the bonds of
Fund Statements . Government-wide Statements
a. $ 0 .... $ 0
b. $ 2 million . $ 0
c. $ 0 ..... $ 2 million
d. $ 2 million .. $ 2 million




$1.99
Sales6
Views626
Comments0
  • CreatedAugust 13, 2014
  • Files Included
Post your question
5000