Various funds and account groups.
1. The following revenues were among those reported by Ariba Township in 20X4:
|
Net rental revenue (after depreciation) from a parking garage owned by Ariba |
$ 40,000 |
|
Interest earned on investments held for employees’ retirement benefits |
100,000 |
|
Property taxes |
6,000,000 |
What amount of the foregoing revenues should be accounted for in Ariba’s governmental funds?
a. $6,140,000
b. $6,100,000
c. $6,040,000
d. $6,000,000
Items 2 and 3 are based on the following information:
The events relating to the city of Albury’s debt service funds that occurred during the year ended December 31, 20X5, are as follows:
|
Debt principal matured |
$2,000,000 |
|
Unmatured (accrued) interest on outstanding debt at January 1, 20X5 |
50,000 |
|
Interest on matured debt |
900,000 |
|
Unmatured (accrued) interest on outstanding debt at December 31, 20X5 |
100,000 |
|
Interest revenue from investments |
600,000 |
|
Cash transferred from the general fund for retirement of debt principal |
1,000,000 |
|
Cash transferred from the general fund for payment of matured interest |
900,000 |
All principal and interest due in 20X5 were paid on time.
2. What is the total amount of expenditures that Albury’s debt service funds should record for the year ended December 31, 20X5?
a. $940,000
b. $950,000
c. $2,900,000
d. $2,500,000
3. How much revenue should Albury’s debt service funds record for the year ended December
31, 20X5?
a. $600,000
b. $1,600,000
c. $1,900,000
d. $2,500,000
4. The following assets are among those owned by the city of Foster:
|
Apartment building (part of the principal of a nonexpendable trust fund) |
$ 200,000 |
|
City hall |
800,000 |
|
Three fire stations |
1,000,000 |
|
City streets and sidewalks |
5,000,000 |
What amount should be included in Foster’s general fixed assets account group?
a. Either $1,800,000 or $6,800,000
b. Either $2,000,000 or $7,000,000
c. Either $6,800,000 or $7,000,000
d. $7,000,000
5. Financing for the renovation of Fir City’s municipal park, begun and completed during 20X6, came from the following sources:
|
Grant from state government |
$400,000 |
|
Proceeds from general obligation bond issue |
500,000 |
|
Transfer from Fir’s general fund |
100,000 |
What amounts should be recorded as revenue and other financing sources?
|
Revenues |
Other Financing Sources |
|
|
$1,000,000 |
$0 |
|
|
$900,000 |
$100,000 |
|
|
$400,000 |
$600,000 |
|
|
$0 |
$1,000,000 |
6. On April 1, 20X6, Oak County incurred the following expenditures in issuing long-term bonds:
|
Issue costs |
$400,000 |
|
Debt insurance |
90,000 |
When Oak establishes the accounting for operating debt service, what amount should be deferred and amortized over the life of the bonds?
a. $0
b. $900,000
c. $400,000
d. $490,000
7. Lake County received the following proceeds that are legally restricted to expenditure for specified purposes:
|
Levies on affected property owners to install sidewalks |
$500,000 |
|
Gasoline taxes to finance road repairs |
900,000 |
What amount would be accounted for in Lake’s special revenue funds?
a. $1,400,000
b. $900,000
c. $500,000
d. $0
8. The initial contribution of cash from the general fund in order to establish an internal service fund would require the general fund to credit Cash and debit
a. Accounts Receivable.
b. Interfund Transfers-Out.
c. Interfund Loans Receivable.
d. Expenditure.
e. Residual Equity Transfers-Out.