Assignment
Complete the following problems and exercises, showing all work and submit in the classroom.
1. Research Case - GASB. Examine the Governmental Accounting Standards Board's website (www.GASB.org) and prepare a brief report about its mission, standard setting process, board composition, and the role of Governmental Accounting Standards Advisory Council. Can you determine how to obtain a copy of the most recent Codification of Governmental Accounting and Financial Reporting Standards? What would it cost to purchase or access this publication?
2. Matching Fund Types With Fund Categories. For each of the following fund types, indicate its fund category by placing either "GF" for governmental funds, "PF" for proprietary funds, or "FF" for fiduciary funds.
a. _____ Agency fund
b. _____ Permanent fund
c. _____ Debt service fund
d. _____ Internal service fund
e. _____ Pension (and other employee benefit) trust fund
f. _____ Special revenue fund
g. _____ Enterprise fund
h. _____ General fund
i. _____ Investment trust fund
j. _____ Capital projects fund
k. _____ Private-purpose trust fund
3. Matching Funds With Transactions. Choose the letter of the sample transaction in the right-hand column that would most likely be reported in the fund listed in the left-hand column.
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Fund
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Example
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1. Agency
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a. Construction of public buildings.
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2. Capital projects
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b. Costs of a centrol purchasing and warehouse function.
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3. Debt service
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c. Gifts in which the principal must be invested and preserved but the investment earnings must be used to provide scholarships to children of police officers who died in the line of duty.
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4. Enterprise
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d. Administrative expenses of the city manager's office.
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5. General
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e. Assets held for external government participants in the government's investment pool for the purpose of earning investment income.
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6. Internal service
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f. Gifts in which the principal must be invested and preserved but the investment earnings can be used for public purposes.
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7. Investment trust
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g. Costs of operating a municipal swimming pool.
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8. Pension (and other employee benefit) trust
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h. Taxes collected on behalf of another governmental unit.
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9. Permanent
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i. Assets held in trust to provide on general long-term debt.
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10. Private-purpose trust
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j. Principal and interest payments on general long-term debt.
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11. Special revenue
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k. Grant revenues restricted for particular operating purposes.
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4. Recording General Fund Operating Budget and Operating Transactions. The Town of Bedford Falls approved a General Fund operating budget for the fiscal year ending June 30, 2017. The budget provides for estimated revenues of $2,700,000 as follows: property taxes, $1,900,000; licenses and permits, $350,000; fines and forfeits, $250,000; and intergovernmental (state grants), $200,000. The budget approved appropriations of $2,650,000 as follows: General Government, $500,000; Public Safety, $1,600,000; Public Works, $350,000; Parks and Recreation, $150,000; and Miscellaneous, $50,000. Use this information to
a. Prepare the journal entry (or entries), including subsidiary ledger entries, to record the Town of Bedford Falls's General Fund operating budget on July 1, 2016, the beginning of the Town's 2017 fiscal year.
b. Prepare journal entries to record the following transactions that occurred during the month of July 2016:
i. Revenues were collected in cash amounting to $31,000 for licenses and permits and $12,000 for fines and forfeits.
ii. Supplies were ordered by the following functions in early July 2016 at the estimated costs shown:
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Function
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Cost
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General Government
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$7,400
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Public Safety
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$11,300
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Public Works
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$6,100
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Parks and Recreation
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$4,200
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Miscellaneous
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$900
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Total
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$29,900
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iii. During July 2016, supplies were received at the actual costs shown below and were paid in cash. General Government, Parks and Recreation, and Miscellaneous received all supplies ordered. Public Safety and Public Works received part of the supplies ordered earlier in the month at estimated costs of $10,700 and $5,900, respectively.
c. Calculate and show in good form the amount of budgeted but unrealized revenues in total and from each source as of July 31, 2016.
d. Calculate and show in good form the amount of available appropriation in total and for each function as of July 31, 2016.