various funds and account groups select the best response for each of the following 614454
Various funds and account groups. Select the best response for each of the following multiple-choice questions.
1. Maple Township issued the following bonds during the year ended June 30, 20X7:
|
Bonds issued for the Garbage Collection Enterprise Fund that will |
|
|
service the debt |
$500,000 |
|
Revenue bonds to be repaid from admission fees collected by the |
|
|
Township Zoo Enterprise Fund |
350,000 |
What amount of these bonds should be accounted for in Maple’s general long-term debt account group?
a. $0
b. $350,000
c. $500,000
d. $850,000
2. On December 31, 20X9, Elm Village paid a contractor $4,500,000 for the total cost of a new
Village Hall built in 20X9 on Elm-owned land. Financing for the capital project was provided by a $3,000,000 general obligation bond issue sold at face amount on December 31, 20X9, with the remaining $1,500,000 transferred from the general fund. What account and amount should be reported in Elm’s 20X9 fund financial statements for the general fund?
|
Other Financing Sources (control) |
$4,500,000 |
|
Expenditures (control) |
$4,500,000 |
|
Other Financing Sources (control) |
$3,000,000 |
|
Other Financing Uses (control) |
$1,500,000 |
3. During 20X9, Spruce City reported the following receipts from self-sustaining activities paid for by users of the services rendered:
|
Operation of water supply plant |
$5,000,000 |
|
Operation of bus system |
900,000 |
What amount should be accounted for in Spruce’s enterprise funds?
a. $0
b. $900,000
c. $5,000,000
d. $5,900,000
4. Through an internal service fund, Wood County operates a centralized data-processing center to provide services to Wood’s other governmental units. In 20X9, this internal service fund billed Wood’s Parks and Recreation Fund $75,000 for data-processing services. What account should Wood’s internal service fund credit to record this $75,000 billing to the Parks and Recreation Fund?
a. Operating Revenues (control)
b. Interfund Exchanges
c. Intergovernmental Transfers
d. Data-Processing Department Expenses
5. The following information pertains to Pine City’s special revenue fund in 20X9:
|
Appropriations |
$6,500,000 |
|
Expenditures |
5,000,000 |
|
Other financing sources |
1,500,000 |
|
Other financing uses |
2,000,000 |
|
Revenues |
8,000,000 |
After Pine’s general fund accounts were closed at the end of 20X9, the fund balance increased by
a. $3,000,000.
b. $2,500,000.
c. $1,500,000.
d. $1,000,000.
6. Kew City received a $15,000,000 federal grant to finance the construction of a center for rehabilitation of drug addicts. The proceeds of this grant should be accounted for in the
a. special revenue funds.
b. general fund.
c. capital projects funds.
d. trust funds.
7. Lisa County issued $5,000,000 of general obligation bonds at 101 to finance a capital project.
The $50,000 premium was to be used for payment of interest. The transactions involving the premium should be accounted for in the
a. capital projects funds, debt service funds, and the general long-term debt account group.
b. capital projects funds and debt service funds only.
c. debt service funds and the general long-term debt account group only.
d. debt service funds only.
8. In 20X9, a state government collected income taxes of $8,000,000 for the benefit of one of its cities that imposes an income tax on its residents. The state periodically remitted these collections to the city. The state should account for the $8,000,000 in the
a. general fund.
b. agency funds.
c. internal service funds.
d. special assessment funds.