Questions and Answers of Essentials Of Accounting For Governmental

On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3,500,000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust.
Record the following transactions on the books of Hope Hospital, which follows FASB (not-for-profit) and AICPA standards. The year is 2020.1. Hope received $15,000 in cash from pledges made in the
St. Joseph’s Hospital began operations in December 2019 and had patient service revenues totaling $1,000,000 (based on customary rates) for the month. Of this, $120,000 is billed to patients,
As of January 1, 2020, the trial balance for Haven Hospital was as follows (these have been entered into Excel template provided):During the fiscal year ended December 31, 2020, the following
Presented below are account balances for Monterey Hospital. In addition, cash transactions for the year ended December 31, 2020, are summarized in the T-account.The hospital issued $600,000 of
Using the annual financial report obtained for Exercise 1–1, answer the following questions:a. Examine the auditor’s report. Is the auditor identified as an independent CPA firm? A state audit
Go to the Better Business Bureau’s Wise Giving Alliance website (http://www.give.org). Select a charity, and open the financial tab. Be sure to select a charity that provides financial
Presented below are the computed amounts of ratios for the Village of Riverside example appearing in the chapter.a. Using the financial statements provided in Illustrations 2-5 through 2-11, compute
Using the annual financial report obtained for Exercise 1–1, answer the following questions:a. Report the following ratios, using the formulas appearing in Illustration 13-3 as a guide:(1)
Presented below are financial statements (except cash flows) for two not-for-profit organizations.a. Calculate the following ratios:∙ Program expense.∙ Fund-raising efficiency.∙ Days cash on
With regard to filing requirements for 501(c)(3) organizations: List the three types of Form 990 and indicate the size of the tax-exempt organization to use for each.
What is the role of a bond-rating agency?
The 2017 financial statements of the U.S. government are available at: https://www.fiscal.treasury.gov/fsreports/rpt/finrep/fr/fr_index.htm Use these to answer the following questions:a.
The 2018 financial statements of the Internal Revenue Service are available at: http://www.gao.gov/products/GAO-19-150 Use these to answer the following questions:a. Statement of Net Cost1. What are
The Mosquito Abatement Commission is a newly organized federal agency with three primary programs: coordinating state government abatement functions, conducting research on mosquito abatement, and
Assume the Federal Interstate Commission began the fiscal year with the following account balances:1. Congress passed a spending bill providing $16,000,000 to fund the agency’s operations for the
During 2020, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for-profit institution.1. Gross charges for patient services, all charged to Patient
This exercise uses the same fact setting as Exercise 11-9 except that items 1 and 2 are changed to be consistent with a private institution. The Great Lakes Maritime Institute is a private
The Great Lakes Maritime Institute is a public institution preparing cadets for careers in commercial shipping and includes instruction in piloting, navigation, maritime law, and other fields.1. The
Southeastern College began the year with endowment investments of $1,200,000 and $700,000 of restricted cash designated by a donor for capital additions.1. During the year an additional $950,000
Eastern University had the following transactions at the beginning of its academic year:1. Student tuition and fees were billed in the amount of $8,100,000. Of that amount, $5,500,000 was collected
New City College reported deferred revenues of $335,000 as of July 1, 2019, the first day of its fiscal year. Record the following transactions related to student tuition and fees and related
The Association of Women in Government established an Educational Foundation to raise money to support scholarship and other education initiatives. The Educational Foundation is a private
Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals, chiefly dogs and cats. At the end of 2019, the organization had the following account
The Blair Museum Association, a nonprofit organization, had the following transactions for the year ended December 31, 2020.1. Cash contributions to the Association for the year included (a)
The Ombudsman Foundation is a private not-for-profit organization providing training in dispute resolution and conflict management. The Foundation had the following preclosing trial balance at
The Evangelical Private School follows FASB standards of accounting and reporting. Record journal entries for the following transactions during the year ended June 30, 2020.1. Cash contributions were
On January 1, 2020, a foundation made a pledge to pay $15,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization,
On October 1, 2020, the voluntary Action Agency (which has December 31 fiscal year-end) received a cash contribution of $450,000 restricted to the purchase of buses to be used in transporting senior
Youth Empowerment, a private not-for-profit organization with a fiscal year ending on June 30, was Awarded a cost-reimbursement grant form U.S. Department of Labor to provide job training to at-risk
Presented below is a partially completed Statement of Activities for a homeless shelter. Complete the Statement of Activities by filling in any missing amounts. (Include zero amounts.) CENTERVILLE
Consider FASB standards for reporting revenues from government grants receive by a not-for-profit organizations. Answer the following questions:a. What features of government grants indicated they
Consider FASB's 2018 guidelines for accounting for contributions and answer the following:a. Identify the characteristics of exchange transactions and describe when revenue should be recognized.b.
Obtain a copy of the annual report of a private not-for-profit organization. Answer the following questions from the report (if obtaining a report online, use the site search or the “about us”
The fund-basis financial statements of Cherokee Library District (a special-purpose government engaged only in governmental activities) have been completed for the year 2020 and appear in the second
Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that the projected level of earnings on plan investments is $190,000, the
With regard to current GASB standards for pension reporting:1. Distinguish between (1) defined contribution plans and (2) defined benefit plans.2. Distinguish between defined benefit pension
On July 1, 2019, a five-year agreement is signed between the City of Genoa and the Computer Leasing Corporation for the use of computer equipment not associated with proprietary funds activity. The
On January 1, 2020, the Mount Rogers city water department leases a truck under a noncancelable lease agreement meeting the requirements for classification as a capital lease. The present value (4
Beachfront property owners of the Town of Eden Beach requested a seawall be constructed to protect their beach. The seawall was financed through a note payable, which was to be repaid from taxes
Presented below is the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the Trinity Parish Fire District, a special-purpose entity engaged in a single
Presented below is the Governmental Funds Balance Sheet for the Warrenton Library District, a special-purpose entity engaged in a single governmental activity. Prepare a combined Governmental Funds
The fund-basis financial statements of Jefferson County have been completed for the year 2020 and appear in the first tab of the Excel spreadsheet provided with this exercise. The following
The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. You are to prepare, in
Presented on the following pages are partial financial statements for the City of Shenandoah, including:Fiscal year 2020: A. Total Governmental Funds: Balance Sheet
The following information is available for the preparation of the government-wide financial statements for the City of Northern Pines for the year ended June 30, 2020:From the previous information,
The following information is available for the preparation of the government-wide financial statements for the City of Southern Springs as of April 30, 2020:From the preceding information, prepare
Using the annual financial report obtained for Exercise 1–1, answer the following questions:a. Examine the reconciliation between the governmental fund balances and the governmental-type activities
A successful businessman in the community has contacted the Moose County Board of Commissioners about donating income-producing securities to the County to support a particular activity. Under the
In December 2019, the Hamilton County Board of Commissioners established the Hamilton County OPEB Trust Fund. Retired employees of Hamilton County can participate in postemployment benefits through
Using the annual report obtained for Exercise 1–1, answer the following questions:a. Examine the Statement of Fiduciary Net Position. Which fund types are included? Look at the Statement of Changes
Presented below is the preclosing trial balance for the Retiree Health Benefit Plan of the Alger County School District.Required:Prepare (1) the year-end closing entries, (2) a Statement of Changes
The City of Sweetwater maintains an Employees’ Retirement Fund, a singleemployer defined benefit plan that provides annuity and disability benefits. The fund is financed by actuarially determined
The following information is available for the preparation of the governmentwide financial statements for the city of Northern Pines for the year ended June 30, 2020:From the previous information,
The following General Fund information is available for the preparation of the financial statements for the city of Eastern Shores for the year ended September 30, 2020:From the information given
The following water and sewer fund information is available for the preparation of the financial statements for the City of Western Sands for the year ended December 31, 2020:From the information
Using the annual report obtained for Exercise 1–1, answer the following questions.a. Review the Statement of Revenues, Expenditures, and Changes in Fund Balances for the governmental funds. List
Prepare budgetary entries, using general ledger control accounts only, for each of the following unrelated situations:a. Anticipated revenues are $10.1 million; anticipated expenditures and
For each of the summarized transactions for the Village of Sycamore General Fund, prepare the general ledger journal entries.a. The budget was formally adopted, providing for estimated revenues of
The City of South Dundee budget for the fiscal year ended June 30, 2020, included an appropriation for the police department in the amount of $8,900,000. During the month of July 2019, the following
The Budgetary Comparison Schedule for the City of Vienna appears below. Several items of information are missing (denoted with “?”).Required:a. Determine the missing amounts.b. During the year,
Following are transactions and events of the General Fund of the City of Springfield for the fiscal year ended December 31, 2020.7. Fund balance on January 1, 2020, was $753,000. There were no
The town council of Riverside estimated revenues for 2020 to be $685,000 from property taxes and $165,000 from business licenses. The appropriations budget from the council was as follows:In April,
The Budgetary Comparison Schedule for the City of Salem appears in Illustration 2-16. Assume the general and subsidiary ledgers for the General Fund were lost after a water pipe burst. You are
The City of Grafton’s records reflected the following budget and actual data for the General Fund for the fiscal year ended June 30, 2020.Required: Use the Excel file provided to prepare a
Using the annual financial report obtained for Exercise 1–1, answer the following questions:a. Review the General Fund column of the Balance Sheet for governmental funds. What are the major assets?
On January 1, 2020, the first day of its fiscal year, Carter City received notification that a federal grant in the amount of $560,000 was approved. The grant was restricted for the payment of wages
The Town of Quincy’s fiscal year ends on June 30. The following data relate to the property tax levy for the fiscal year ended June 30, 2020. Prepare journal entries for each of the dates as
The following information was abstracted from the accounts of the General Fund of the City of Rome after the books had been closed for the fiscal year ended June 30, 2020.There were no transfers into
The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:1. Beginning balances were: Cash, $80,000; Taxes Receivable, $185,000; Accounts
Lincoln County’s General Fund had two interfund transactions:1. The General Fund paid $225,000 to the Housing and Urban Development Fund, a special revenue fund that is supported by grants from the
The following transactions relate to Newport City’s special revenue fund.1. In 2020, Newport City created a special revenue fund to help fund the 911 emergency call center. The center is to be
Assume at the beginning of 2020 the Village of Ashlawn Street and Highway Fund (a special revenue fund) has cash of $336,000 offset by assigned fund balance in the same amount.1. During the year, the
Jefferson County’s General Fund began the year 2020 with the following account balances:During 2020, Jefferson experienced the following transactions:1. The budget was passed by the County
The state government administers a special revenue fund, the Fish and Game Fund. By legislation, revenue in this fund can be used only for the purpose of protection, propagation, and restoration of
Using the annual financial report obtained for Exercise 1–1, answer the following questions:a. Examine the governmental fund financial statements. Are any major capital projects funds included? If
The citizens of Spencer County approved the issuance of $2,000,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for
A citizen group raised funds to establish an endowment for the Eastville City Library. Under the terms of the trust agreement, the principal must be maintained, but the earnings of the fund are to be
Armstrong County established a County Office Building Construction Fund to account for a project that was expected to take less than one year to complete. The County’s fiscal year ends on June
The Village of Hawksbill issued $4,000,000 in 5 percent general obligation, tax-supported bonds on July 1, 2019, at 102. A fiscal agent is not used. Resources for principal and interest payments are
The Village of Burksville, which has a fiscal year July 1 to June 30, sold $2,500,000 in 5 percent tax-supported bonds at par to construct an addition to its police station. The bonds were dated and
The Town of McHenry has $10,000,000 in general obligation bonds outstanding and maintains a single debt service fund for all debt service transactions. On July 1, 2020, a current refunding took place
The City of Sharpesburg received a gift of $1,800,000 from a local resident on June 1, 2020, and signed an agreement that the funds would be invested permanently and that the income would be used to
Jefferson County established a capital project fund in 2019 to build low-income housing with the transfer of $100,000 from the General Fund. A portion of that was expended on engineering studies in
The state government established a capital project fund in 2016 to build new highways. The fund is supported by a 5 percent tax on diesel fuel sales in the state. The tax is collected by private gas
Using the annual financial report obtained for Exercise 1–1, answer the following questions:a. Review the Statement of Net Position for the proprietary funds. Is the Net Position or the Balance
The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2020, the last day of its fiscal year. The enterprise fund was established this year through a
The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2019, the first day of the fiscal year:During the year ended June 30, 2020, the following transactions and
The City of Sandwich purchased a swimming pool from a private operator as of April 1, 2020, for $400,000, of which $200,000 was provided by a onetime contribution from the General Fund, and $200,000
The Village of Parry reported the following for its Print Shop Fund for the year ended April 30, 2020.The Print Shop Fund records also revealed the following:The following balances were observed in
The following is a Statement of Cash Flows for the risk management internal service fund of the City of Wrightville. An inexperienced accountant prepared the statement using the FASB format rather
The Town of Frostbite self-insures for some of its liability claims and purchases insurance for others. In an effort to consolidate its risk management activities, the Town recently decided to
The City of Evansville operated a summer camp program for at-risk youth. Businesses and nonprofit organizations sponsor one or more youth by paying the registration fee for program participants. The
The Town of Thomaston has a Solid Waste Landfill Enterprise Fund with the following trial balance as of January 1, 2020, the first day of the fiscal year.During the year, the following transactions
Jefferson County operates a centralized motor pool to service county vehicles. At the end of 2019, the Motor Pool Internal Service Fund had the following account balances:The following events took
Rural County is an agricultural community located hundreds of miles from any metropolitan center. The County established a Television Reception Improvement Fund to serve the public interest by
Answer the following question regarding custodial funds:a. When is it appropriate to account for any activity in a custodial fund?b. What are required financial statements of a custodiaal fund?c.
On July 1, 2019, the Morgan County School District received a $40,000 gift from a local civic organization with the stipulation that, on June 30 of each year, $2,500 plus any interest earnings on the
The City of St. John operates an investment trust fund for neighboring governments, including St. John County and the independent school district. Assume the investment trust fund began the year 2020
With regard to current GASB standards for pension reporting, do the following:a. Distinguish between (1) defined contribution plans and (2) defined benefit plans.b. Distinguish between (1) agent and

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