City X purchased $6,000 of new computers during the year from the general fund. Which of the following statements is correct about how this would be recorded?
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- A government buys equipment for its police department at a cost of $54,000. Which of the following is Equipment will increase by $54,000 in the government-wide financial statements. Depreciation in connection with this equipment will be reported in the fund financial statements. The equipment will not appear within the reported assets in the fund financial statements. An expenditure for $54,000 will be reported in the fund financial statements.The following items were included in Simple City's General Fund expenditures for the year ended June 30: Computer for the city treasurer's office $ 6,000 Furniture for the mayor’s office $ 20,000 How much should be classified as capital assets in Simple City's government-wide statement of net position at June 30? Multiple Choice $26,000 $0 $20,000 $6,000General capital assets are accounted for differently in fund and government-wide financial statements. A city engaged in the following transactions during a year: It acquired computer equipment at a cost of $40,000. It completed construction of a new jail, incurring $245,000 in new costs. In the previous year the city had incurred $2.5 million in construction costs. The project was accounted for in a capital projects fund. It sold for $16,000 land that it had acquired three years earlier for $28,000. It traded in a four-year-old sanitation department vehicle for a new model. The old vehicle had initially cost $27,000, it carrying value at the time of trade was $17,000, and its market value was $13,000. The city paid an additional $39,000 cash for the new model. The fair value of the new model was $52,000. a. Prepare journal entries to reflect the transactions in an appropriate governmental fund (e.g., a general fund or a capital projects fund). b. Prepare journal entries to reflect…
- A $110,000 payment is made on a long-term liability. Of this amount, $10,000 represents interest. Which of the following is not true for the recording of this transaction? Choose the correct.a. Reduce liabilities by $100,000 in the government-wide financial statements.b. Record a $110,000 expenditure in the fund financial statements.c. Reduce liabilities by $100,000 in the fund financial statements.d. Recognize $10,000 interest expense in the government-wide financial statements.The Township of Thomasville's General Fund has the following net resources at year end: $66,000 of inventory $375,000 federal grants for disaster relieve related to the flood $60,000 sinking fund for payments of general obligation bond $150,000 contractual obligations for the purchase of equipment $200,000 to be used to fund government operations in the future Outstanding encumbrance of $80,000 for the purchase of office supplies What would be the total Nonspendable fund balance? What would be the total Restricted fund balance? What would be the total Committed fund balance? What would be the total Assigned fund balance?The Township of Thomasville's General Fund has the following net resources at year end: S66,000 of inventory • $375,000 federal grants for disaster relieve related to the flood • $60,000 sinking fund for payments of general obligation bond • $150,000 contractual obligations for the purchase of equipment • $200,000 to be used to fund government operations in the future • Outstanding encumbrance of $80,000 for the purchase of office supplies 1. What would be the total Nonspendable fund balance? 2. What would be the total Restricted fund balance? 3. What would be the total Committed fund balance? 4. What would be the total Assigned fund balance? 5. What would be the total Unassigned fund balance?
- The City of Soheil maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide financial statements. Required: You are to prepare, in journal form, worksheet adjustments for each of the following situations. General fixed assets, as of the beginning of the year, which had not been recorded, were as follows: Land $ 96,000,000 Buildings 480,000,000 Improvements other than buildings 270,000,000 Equipment 60,000,000 Accumulated depreciation, capital assets 150,000,000 During the year, expenditures for capital outlays amounted to $22,700,000. Of that amount, $10,600,000 was for buildings; $8,300,000 was for improvements other than buildings, $95,000 was capitalized interest and the remainder was for land. The capital outlay expenditures outlined in (B) were completed at the end of the year (no depreciation until next year). For purposes of financial statement…A $110,000 payment is made on a long-term liability. Of this amount, $10,000 represents interest. Which of the following is true for the recording of this transaction? Reduce liabilities by $100,000 in the government-wide financial statements. Record a $110,000 expenditure in the fund financial statements. Reduce liabilities by $100,000 in the fund financial statements. Recognize $10,000 interest expense in the government-wide financial statements.A state constructs an office building. The construction is financed with: (1) a transfer of $1 million from the General Fund; (2) a grant of $3 million from the federal government; (3) bond proceeds of $6 million; and (4) earnings of $100,000 from temporary investment of bond proceeds. All transactions occur in one year. How much should be reported as Revenues in the Capital Projects Fund? $100,000 $1,100,000 $3,100,000 $10,100,000
- In 2021, Garden City bought land for $50,000. Which of the following is not true? O a. The land could be reported as an asset by the business-type in the fund-based financial statements. O b. The land could be reported as an asset by the governmental funds in the fund-based financial statements. O c. The land could be reported as an asset by the governmental funds in the government-wide financial statements. O d. The land could be reported as an asset by the business-type activities in the government-wide financial statements.[The following information applies to the questions displayed below.]The Township of Thomasville’s General Fund has the following net resources at year end: $69,000 of prepaid insurance $410,000 rainy day fund approved by the township governing board with specific conditions for its use $1,800 of supplies inventory $60,000 state grant for snow removal $150,000 contractual obligations for the purchase of equipment Outstanding encumbrance of $105,000 for the purchase of furniture & fixtures (assume no contractual obligation) Total Fund Balance is $1,010,500 What would be the total Nonspendable fund balance? Multiple Choice $70,800 $150,000 $69,000 $410,500 What would be the total Restricted fund balance? Multiple Choice $60,000 $150,000 $479,000 $410,000[The following information applies to the questions displayed below.]The Township of Thomasville’s General Fund has the following net resources at year end: $69,000 of prepaid insurance $410,000 rainy day fund approved by the township governing board with specific conditions for its use $1,800 of supplies inventory $60,000 state grant for snow removal $150,000 contractual obligations for the purchase of equipment Outstanding encumbrance of $105,000 for the purchase of furniture & fixtures (assume no contractual obligation) Total Fund Balance is $1,010,500 What would be the total Committed fund balance? Multiple Choice $410,000 $210,000 $560,000 $562,500 What would be the total Assigned fund balance? Multiple Choice $129,000 $165,000 $315,000 $105,000
