Problem

Questions on Fund Items [AICPA Adapted]The following information relates to actual results...

Questions on Fund Items [AICPA Adapted]

The following information relates to actual results from Central Town’s general fund for the year ended December 31, 20X1:

 

Revenues

Expenditures and Transfers

Property tax collections:

 

 

Current year taxes collected

$630,000

 

Prior year taxes due 12/1/×0, collected 2/1/×1

50,000

 

Current year taxes due 12/1/×1, collection expected by 2/15/×2

70,000

 

Other cash receipts

190,000

 

General government expenditures:

 

 

Salaries and wages

 

$160,000

Other

 

100,000

Public safety and welfare expenditures:

 

 

Salaries and wages

 

350,000

Other

 

150,000

Capital outlay

 

140,000

Transfer out to debt service fund

 

30,000

• Other cash receipts include a county grant of $100,000 for a specified purpose, of which $80,000 was expended; $50,000 in fines; and $40,000 in fees.

• General Government Expenditures—Other includes employer contributions to the pension plan and $20,000 in annual capital lease payments for computers over three years; the fair value and present value at lease inception is $50,000.

• Capital outlay is for police vehicles.

• Debt service represents annual interest payments due December 15 of each year on $500,000 face value, 6 percent, 20-year term bonds.

Capital Projects Fund

Central’s council approved $750,000 for construction of a fire station to be financed by $600,000 in general obligation bonds and a $150,000 state grant. Construction began during 20X1, but the fire station was not completed until April 20X2. During 20X1, the following transactions were recorded:

State grant

$150,000

Bond proceeds

610,000

Expenditures

500,000

Unpaid invoices at year-end

30,000

Outstanding encumbrances at year-end,

 

which do not lapse and are to be honored

 

the following year

25,000

The unassigned fund balance in the capital projects fund at January 1, 20X1, was $110,000.

Required

For questions a through i, determine the December 31, 20X1, year-end amounts to be recognized in the particular fund. If the item is not reported in a particular fund but is reported on the government-wide financial statements, then specify the amount that would be reported on the government-wide financials. Select your answer from the list of amounts below the questions. An amount may be selected once, more than once, or not at all.

a. What amount was recorded for property tax revenues in the general fund?


b. What amount was recorded for other revenues in the general fund?


c. What amount was reported for capital leases of computers in the government-wide statement of net assets?


d. What amount was reported for the new police vehicles in the government-wide statement of net assets?


e. What amount was reported for the debt service interest payment in the debt service fund?


f. What was the total amount recorded for function expenditures in the general fund?


g. What amount was recorded for revenues in the capital projects fund?


h. What amount was reported for construction in progress in the government-wide statement of net assets?


i. What amount was reported as the Fund Balance—Unassigned at December 31, 20X1, in the capital projects fund?

Amounts

1.

$0

2.

$30,000

3.

$50,000

4.

$55,000

5.

$60,000

6.

$140,000

7.

$150,000

8.

$170,000

9.

$190,000

1 0.

$315,000

11.

$345,000

12.

$370,000

13.

$500,000

1 4.

$525,000

15.

$630,000

1 6.

$700,000

1 7.

$710,000

1 8.

$760,000

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Solutions For Problems in Chapter 17