Question:
Items 1 through 10 in the left-hand column represent various transactions pertaining to a municipality that uses encumbrance accounting. Items 11 through 20, also listed in the left-hand column, represent the funds and accounts used by the municipality. To the right of these items is a list of possible accounting and reporting methods.
Required
a. For the municipality, select the appropriate method to record each transaction (items 1 through 10). A method of recording the transactions may be selected once, more than once, or not at all.
b. Select the appropriate method of accounting and reporting for each of the municipalitys funds, accounts, and other items (items 11 to 20). An accounting and reporting method may be selected once, more than once, or not atall.
Transcribed Image Text:
Recording of Transactions A. Credit Appropriations Control Transactions 1. General obligation bonds were issued at par 2. Approved purchase orders were issued for supplies. rdit Budgetary Fund 3. Supplies in item 2 were received and the related Balance -Unassigned C. Credit Expenditures Control D. Credit Deferred Revenues E. Credit Interfund Revenues F. Credit Tax Anticipation Notes invoices were approved 4. General fund salaries and wages were incurred. 5. The internal service fund had interfund billings. 6. Revenues were earned from a previously awarded grant. Payable G. Credit Other Financing Sources H. Credit Other Financing Uses I. Debit Appropriations Control J. Debit Deferred Revenues K. Debit Encumbrances Control L. Debit Expenditures Control 7. Property taxes were collected in advance. 8. Appropriations were recorded on adoption of the budget. 9. Short-term financing secured by the city's taxing power was received from a bank 10. Estimated inflows exceeded estimated outflows Funds and Accounts Accounting and Reporting 11. Enterprise fund fixed assets 12. Capital projects fund 13. Permanent fund 14. Infrastructure fixed assets 15. Enterprise fund cash 16. General fund 17 Agency fund cash 18. Transfer out from the general fund A. Accounted for in a fiduciary fund B. Accounted for in a proprietary fund C. Accounts for permanent endowments that can be used for government programs D. Reported as an other financing use E. Accounted for in a special assessment fund F. Accounts for major construction activities G. Accounts for property tax revenues H. Accounts for payment of interest and to the internal service fund 19. Special revenue fund (a major fund) 20. Debt service fund (a major fund) principal on tax-supported debt l. Accounts for revenues from earmarked sources to finance designated activities J. Reported in government-wide statements