AC471 CH 4

The Town of Freeport collected $3,000 of prior year property taxes six months after year-end. Which of the following would not be part of the entry to record collection of delinquent taxes in the General Fund?

A debit to Taxes Receivable—Delinquent for $3,000.

Goods for which a purchase order had been placed at an estimated cost of $1,600 were received at an actual cost of $1,550. The journal entry in the General Fund to record the receipt of the goods will include a:

All of the above are correct.

Carroll City levies $200,000 of property taxes for its current fiscal year. One percent of the tax levy is expected to be uncollectible. The city collects $170,000 of its taxes during the year and another $25,000 during the first two months of the following year. In addition, the city collected $3,000 of prior year taxes during the first two months of the current fiscal year and another $2,000 during the remainder of the current fiscal year. What amount of property tax revenues should the city report in the government-wide financial statements for the current fiscal year?

$198,000.

Which of the following properly represents the format of the government-wide statement of net position?

Assets and deferred outflows minus liabilities and deferred inflows equal net position.

The Village of Frederick borrowed $1,000,000 from a local bank by issuing 4 percent tax anticipation notes. If the village repaid the tax anticipation notes six months later after collecting its next installment of property taxes, the General Fund journal entry to record the repayment will include:

Both debit to Tax Anticipation Notes Payable for $1,000,000 and debit to Expenditures for $20,000.

When equipment is purchased with General Fund resources, which of the following accounts should be debited in the governmental activities journal?

Equipment.

When equipment is purchased with General Fund resources, which of the following accounts should be debited in the General Fund?

Expenditures.

The City of Waterville applied for a grant from the state government to build a pedestrian bridge over the river inside the city's park. On May 1, the city was notified that it had been awarded a grant of up to $200,000 for the project. The state will provide reimbursement for allowable expenditures. On May 5, the special revenue fund entered into a short-term loan with the General Fund for $200,000 so it could start bridge construction. During the year, the special revenue fund expended $165,000 for allowable bridge construction costs, for which it submitted documentation to the state. Reimbursement was received from the state on December 13. Required For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following. (Assume the city has a fiscal year-end of December 31.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. May 1, notification of grant approval. 2. May 5, loan from General Fund. 3. During the year, bridge expenditures and submission of reimbursement documentation. 4. December 13, receipt of the grant reimbursement funds. 5. December 31, adjusting and closing entries.

Explanation 1.No Entry Required - Eligibility requirements must be met before an asset and revenue can be recognized. 3.While the city can record this entry, the final determination that eligibility requirements have been met is determined by the state. 5.Note that no additional entries need to be made, since eligibility requirements have not been met as of year end for the remaining $35,000 of grant funds awarded.

During the current year, the City of Plattsburgh recorded the following transactions related to its property taxes: 1. Levied property taxes of $6,600,000, of which 2 percent is estimated to be uncollectible. 2. Collected current property taxes amounting to $5,975,000. 3. Collected $53,000 in delinquent taxes and $4,800 in interest and penalties on the delinquent taxes. These amounts had been recorded as Deferred Inflows of Resources in the prior year. 4. Imposed penalties and interest in the amount of $7,500 but only expects to collect $6,200 of that amount. 5. Reclassified uncollected taxes and interest and penalties as delinquent. These amounts are not expected to be collected within the first 60 days of the following fiscal year. a. Prepare journal entries to record the property tax transactions in the General Fund.

Explanation a. General Fund:5. This figure, $499,200, includes taxes and interest and penalties recorded as revenues less collections, $493,000 for taxes and $6,200 for interest and penalties.

Clarion Township was approved for a grant from the federal government. The grant provides for reimbursement up to $200,000 for expenditures incurred to weatherize homes for low-income persons. Upon notification that the grant had been approved, but before weatherization activities have begun, Clarion Township should:

Make no journal entry.

During the current year, the City of Hickory Hills issued purchase orders to various vendors in the amounts shown for the following functions of the city: General Government $164,200 Public Safety 302,000 Public Works 224,400 Culture and Recreation 181,700 Health and Welfare 168,100 Miscellaneous 24,600 Total $1,065,000 All goods ordered during the year were received at the following actual costs: General Government $159,800 Public Safety 301,700 Public Works 226,800 Culture and Recreation 181,700 Health and Welfare 171,300 Miscellaneous 25,600 Total $1,066,900 c. Does the fact that the actual cost of goods received during the year exceeded the estimated cost when ordered suggest a budgetary or management problem?

No Explanation c.The fact that the actual cost of these goods is $1,900 more than the estimated cost when the goods were ordered is of no consequence, and does not indicate a budgetary or management problem. Prices of goods often change from listed or quoted prices and shipping charges can vary, depending on the mode of shipment and rates at particular dates.

Garden City has calculated that General Fund property tax revenues of $4,608,000 are required for the current fiscal year. Over the past several years, the city has collected 96 percent of all property taxes levied. The city levied property taxes in the amount that will generate the required $4,608,000. Which of the following general journal entries would correctly record the property tax levy?

Option B

Which of the following transactions is reported on the government-wide financial statements?

The City Airport Fund, an enterprise fund, transfers a portion of boarding fees charged to passengers to the General Fund.