ACCT 567 Final Exam Guide
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ACCT 567 Final Exam Guide
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ACCT 567 Final Exam Guide
1. (TCO A) On what should the government-wide financial statements report?
2. (TCO B) According to GASB standards, when should transfers be recognized?
3. (TCO C) Comparisons of budgeted versus actual revenues and expenditures are a requirement of
which of the following situations?
4. (TCO D) The revenues account of a government entity is debited when
5. (TCO E) During the year, a wealthy local businessman donated a building to city of Perris. The original
cost of the building was $340,000. Accumulated depreciation at the date of the gift amounted to $220,000.
The appraised fair market value of the donation at the date of the gift was $525,000 of which $35,000 was
the value of the land on which the building was situated. At what amount should the city record this
donated property in the governmental activities accounts at the government-wide level?
6. (TCO E) Which of the following resource inflows would be recorded as a revenue of a debt service
fund?
7. (TCO G) Which of the statements concerning agency funds is a true statement?
8. (TCO J) Which of the following items are typically reported differently between the governmental fund
statements and the governmental activities column of the government-wide statements?
9. (TCO H) A condition whereby the design or operation of a control does not allow management or
employees in the normal course of performing their assigned functions, to prevent or detect and correct
misstatements on a timely basis is called a(an)
10. (TCO H) Under FASB Standards, how would a not-for-profit organization recognize a conditional
pledge?
11. (TCO I) Which of the following items would not affect the amounts reported in the Revenues and
Gains section of the statement of activities for a private college or university?
12. (TCO I) The primary source of revenues for most hospitals are
1. (TCOs D, E, F, and G) Please list the name of the fund(s) in which each of the following transactions or
events would be recorded.
(1) Bonds of $1,000,000 from which the proceeds are to be used for the construction of a new City Hall
building.
(2) Salaries of $170,000 were paid to personnel in the office of the mayor.
(3) Installment payments of $75,000 were received from the property owners that were assessed for the
street improvement project.
(4) Over $65,000 of funds were received by employees by payroll deductions that are to be used for the
purchase of United States Government Bonds for those employees on an individual basis.
(5) Materials of $140,000 were to be used for the general repair of the streets that were purchased by the
city.
(6) Excess funds of $60,000 were transferred from the water utility to the General Fund.
2. (TCO F) The garbage collection of the city of Rockwell could be accounted for through the General
Fund, a Special Revenue Fund, or an Enterprise Fund. Please identify the circumstances in which each
of these fund types might be appropriate.
3. (TCO I) During the fiscal year of June 2012, Jefferson General Hospital, a not-for-profit healthcare
organization, had the following revenue-related transactions. (The amounts are summarized for the entire
year.)
(1) Healthcare services that are provided to inpatients and outpatients amounted to $9,640,000, of which
$420,000 were for charity cases, $865,000 was paid by uninsured patients, and $8,355,000 was billed to
Medicare, Medicaid, and other insurance companies.
(2) Pharmaceutical drugs and medicines sold by the hospital pharmacy amounted to $830,000, all of
which was paid by the customer or the insurance companies.
(3) Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,640,000 of
the $8,355,000 billed by the hospital during the year (please review transaction #1).
(4) A contribution of $4,000,000 (of which is unconditional) was received in cash from a donor to construct
a new facility for cancer patients. The full amount is expendable for that purpose. No activity has taken
place during the current year.
(5) A total of $810,000 was received from the following activities/sources: cafeteria and gift shop sales,
$630,000, unrestricted transfers from the Claremont Hospital Foundation, $110,000, and fees for medical
transcripts, $70,000.
(6) The allowance for uncollectible receivables was increased by $1,350.
Enter the templates provided in the answer space and complete the following requirements:
Requirements:
a. Record the preceding transactions in general journal form.
b. Prepare the unrestricted revenues, gains, and other support section of Jefferson General Hospital’s
statement of operations for the current year.
Templates:
Part A
……………………………………………………………………………..Debit…………………….. Credit
a. Cash
Accounts and Notes Receivable
Patient Service Revenue
b. Cash
Other revenues
c. Cash
Contractual adjustments
Accounts and Notes Receivable
d. Cash
Contributions-Temporarily Restricted
e. Cash
Other revenues
f. Provision for Bad Debts
Allowance for Uncollectible Receivables
Part B
Unrestricted Revenues, Gains, and Other Support:
Net Patient Service Revenue $ xxx
……………………..Other revenues xxx
4. (TCO E) Enter the template provided in the answer space and record the following transactions in the
Capital Projects Fund in the general journal for the following transactions.
a. McDowell County issued $4,000,000, 5% bonds with interest payable on a semiannual basis on July 1
and January 1. The bonds sold for 102 on July 30, 2012. Proceeds from the bond issue were to be used
for construction of the new sheriff station with all interest and premiums received to be used to service the
debt issue.
b. A state grant of $250,000 was received to help finance the construction of the sheriff station.
c. The General Fund transferred $300,000 for use in the construction of the new sheriff station.
d. A federal grant of $500,000 was received to help finance the construction of the new sheriff station.
e. A construction contract was awarded to the Young Construction Company in the amount of $4,750,000.
f. The new sheriff station was completed on May 1, 2013, three months ahead of schedule. The
construction expenditures amounted to $4,870,000. When the project was completed, the cost of the
sheriff station was allocated to the following, $310,000 for land, $4,180,000 for the building, and the
remainder to equipment.
g. The temporary accounts of the capital projects were closed to Fund Balance-Restricted. The amounts
are restricted due to the bond issue that is related to the construction of the sheriff station. The capital
projects fund will be closed by transferring remaining funds to the debt service fund for repayment.
Template:
Capital Project Fund (only) ……………………………………….debit………………………. credit
a. Cash
Other Financing Sources-Bond Proceeds
b. Cash
Revenues
c. Cash
Other Financing Sources-Transfer In
d. Cash
Revenues
e. Encumbrances
Reserve for Encumbrances
f. Construction Expenditures
Cash
Reserve for Encumbrances
Encumbrances
g. To close the temporary accounts:
Other Financing Sources-Bond Proceeds
Other Financing Sources-Transfers In
Revenues
Construction Expenditures
Fund Balance-Restricted
To close the Capital Projects Fund:
Other Financing Uses-Transfers Out
Cash
Fund Balance-Restricted
Other Financing Uses-Transfers Out
5. (TCO F) The following Statement of Cash Receipts and Disbursements was prepared by the
bookkeeper of the City of Glass City Museum of Science. The museum is a component unit of the City of
Glass City and must be included in the city’s financial statements. It began operations on January 1, 2012
with no liabilities or commitments and only two assets.
(1) $6,000 in cash and (2) Land that was acquired for $11,000.
Cash Basis
12 months
Cash Receipts:
Admission Fees $295,000
Loan from the Bank $50,000
Total deposits $345,000
Cash Disbursements:
Supplies $62,000
Wages 104,000
Utilities 48,000
Purchase of Equipment 70,000
Purchase of Fixtures
45,000
Interest on the Bank Loan 1,250
Total checks
$330,250
Excess of Receipts Over Disbursements $14,750
Additional Information:
• The loan from the bank is dated April 1 and is for a five-year period. Interest (5% annual rate) is paid on
Oct. 1 and April 1 of each year, beginning Oct. 1, 2012.
• The equipment was purchased on April 1, 2012 with the proceeds provided by the bank loan and has an
estimated useful life of 10 years (please use the straight-line method of depreciation) for computing
depreciation on the equipment. The fixtures were purchased on July 1, 2012 and has an estimated useful
life of five years (please use the straight-line method of depreciation) for computing depreciation on the
fixtures.
• Supplies on-hand amounted to $5,900 at December 31, 2012.
• All other bills and salaries related to 2012 had been paid by the close of business on December 31.
Required:
Enter the template provided in the answer space and complete the following requirements:
Please prepare a Statement of Revenues, Expenses, and Changes in Net Assets for the year ended
December 31, 2012 assuming the city plans to account for its activities on the accrual basis.
Template:
Operating Revenues:
Charges for Services $
Operating Expenses:
Wages $
Supplies ($62,000-5,900)
Utilities
Depreciation ($70,000/10*9/12)
+ ($45,000/5*6/12)
Total Operating Expenses
Operating Income (Loss) $
Nonoperating Expenses:
Interest $1,250 + ($50,000*5%*3/12)
Change in Net Assets
Net Assets, Jan. 1, 2012
Net Assets, Dec. 31, 2012
2. (TCO F) The garbage collection of the city of Rockwell could be accounted for through the General
Fund, a Special Revenue Fund, or an Enterprise Fund. Please identify the circumstances in which each
of these fund types might be appropriate.
3. (TCO I) During the fiscal year of June 2012, Jefferson General Hospital, a not-for-profit healthcare
organization, had the following revenue-related transactions. (The amounts are summarized for the entire
year.)
(1) Healthcare services that are provided to inpatients and outpatients amounted to $9,640,000, of which
$420,000 were for charity cases, $865,000 was paid by uninsured patients, and $8,355,000 was billed to
Medicare, Medicaid, and other insurance companies.
(2) Pharmaceutical drugs and medicines sold by the hospital pharmacy amounted to $830,000, all of
which was paid by the customer or the insurance companies.
(3) Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,640,000 of
the $8,355,000 billed by the hospital during the year (please review transaction #1).
(4) A contribution of $4,000,000 (of which is unconditional) was received in cash from a donor to construct
a new facility for cancer patients. The full amount is expendable for that purpose. No activity has taken
place during the current year.
(5) A total of $810,000 was received from the following activities/sources: cafeteria and gift shop sales,
$630,000, unrestricted transfers from the Claremont Hospital Foundation, $110,000, and fees for medical
transcripts, $70,000.
(6) The allowance for uncollectible receivables was increased by $1,350.
Enter the templates provided in the answer space and complete the following requirements:
Requirements:
a. Record the preceding transactions in general journal form.
b. Prepare the unrestricted revenues, gains, and other support section of Jefferson General Hospital’s
statement of operations for the current year.
Templates:
Part A
……………………………………………………………………………..Debit…………………….. Credit
a. Cash
Accounts and Notes Receivable
Patient Service Revenue
b. Cash
Other revenues
c. Cash
Contractual adjustments
Accounts and Notes Receivable
d. Cash
Contributions-Temporarily Restricted
e. Cash
Other revenues
f. Provision for Bad Debts
Allowance for Uncollectible Receivables
Part B
Unrestricted Revenues, Gains, and Other Support:
Net Patient Service Revenue $ xxx
……………………..Other revenues xxx
4. (TCO E) Enter the template provided in the answer space and record the following transactions in the
Capital Projects Fund in the general journal for the following transactions.
a. McDowell County issued $4,000,000, 5% bonds with interest payable on a semiannual basis on July 1
and January 1. The bonds sold for 102 on July 30, 2012. Proceeds from the bond issue were to be used
for construction of the new sheriff station with all interest and premiums received to be used to service the
debt issue.
b. A state grant of $250,000 was received to help finance the construction of the sheriff station.
c. The General Fund transferred $300,000 for use in the construction of the new sheriff station.
d. A federal grant of $500,000 was received to help finance the construction of the new sheriff station.
e. A construction contract was awarded to the Young Construction Company in the amount of $4,750,000.
f. The new sheriff station was completed on May 1, 2013, three months ahead of schedule. The
construction expenditures amounted to $4,870,000. When the project was completed, the cost of the
sheriff station was allocated to the following, $310,000 for land, $4,180,000 for the building, and the
remainder to equipment.
g. The temporary accounts of the capital projects were closed to Fund Balance-Restricted. The amounts
are restricted due to the bond issue that is related to the construction of the sheriff station. The capital
projects fund will be closed by transferring remaining funds to the debt service fund for repayment.
Template:
Capital Project Fund (only) ……………………………………….debit………………………. credit
a. Cash
Other Financing Sources-Bond Proceeds
b. Cash
Revenues
c. Cash
Other Financing Sources-Transfer In
d. Cash
Revenues
e. Encumbrances
Reserve for Encumbrances
f. Construction Expenditures
Cash
Reserve for Encumbrances
Encumbrances
g. To close the temporary accounts:
Other Financing Sources-Bond Proceeds
Other Financing Sources-Transfers In
Revenues
Construction Expenditures
Fund Balance-Restricted
To close the Capital Projects Fund:
Other Financing Uses-Transfers Out
Cash
Fund Balance-Restricted
Other Financing Uses-Transfers Out
5. (TCO F) The following Statement of Cash Receipts and Disbursements was prepared by the
bookkeeper of the City of Glass City Museum of Science. The museum is a component unit of the City of
Glass City and must be included in the city’s financial statements. It began operations on January 1, 2012
with no liabilities or commitments and only two assets.
(1) $6,000 in cash and (2) Land that was acquired for $11,000.
Cash Basis
12 months
Cash Receipts:
Admission Fees
Loan from the Bank
Total deposits
$295,000
$50,000
$345,000
Cash Disbursements:
Supplies
Wages
$62,000
104,000
Utilities
Purchase of Equipment
48,000
70,000
Purchase of Fixtures
Interest on the Bank Loan
Total checks
45,000
1,250
$330,250
Excess of Receipts Over Disbursements
$14,750
Additional Information:
• The loan from the bank is dated April 1 and is for a five-year period. Interest (5% annual rate) is paid on
Oct. 1 and April 1 of each year, beginning Oct. 1, 2012.
• The equipment was purchased on April 1, 2012 with the proceeds provided by the bank loan and has an
estimated useful life of 10 years (please use the straight-line method of depreciation) for computing
depreciation on the equipment. The fixtures were purchased on July 1, 2012 and has an estimated useful
life of five years (please use the straight-line method of depreciation) for computing depreciation on the
fixtures.
• Supplies on-hand amounted to $5,900 at December 31, 2012.
• All other bills and salaries related to 2012 had been paid by the close of business on December 31.
Required:
Enter the template provided in the answer space and complete the following requirements:
Please prepare a Statement of Revenues, Expenses, and Changes in Net Assets for the year ended
December 31, 2012 assuming the city plans to account for its activities on the accrual basis.
Template:
Operating Revenues:
Charges for Services $
Operating Expenses:
Wages $
Supplies ($62,000-5,900)
Utilities
Depreciation ($70,000/10*9/12)
+ ($45,000/5*6/12)
Total Operating Expenses
Operating Income (Loss) $
Nonoperating Expenses:
Interest $1,250 + ($50,000*5%*3/12)
Change in Net Assets
Net Assets, Jan. 1, 2012
Net Assets, Dec. 31, 2012
(TCO F) Any activities that produce goods or services to be provided to other departments or other
governmental units would be reported in which fund?
TCO F) Which of the following is a true statement regarding the cash flow statements of a proprietary
fund?
(TCO G) A fund that is the result of an agreement between a contributor and a government that the
principal and/or income of trust assets that is for the benefit of individuals, organizations, or other
governments is a(n)
(TCO H) Public sector audits differ from those of commercial businesses in which of the following
instances?
(TCO J) Under GASB Standards, if a government only has six government funds and two enterprise
funds, what is the required number of basic financial statements that it would need to prepare?
(TCO H) Which of the following would be considered “contribution revenue or support” of a not-for-profit
organization?
(TCO H) Describe the different types of governmental audits and attestation engagements.
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ACCT 567 Final Exam Guide
1. (TCO A) On what should the government-wide financial statements report?
2. (TCO B) According to GASB standards, when should transfers be recognized?
3. (TCO C) Comparisons of budgeted versus actual revenues and expenditures are a requirement of
which of the following situations?
4. (TCO D) The revenues account of a government entity is debited when
5. (TCO E) During the year, a wealthy local businessman donated a building to city of Perris. The original
cost of the building was $340,000. Accumulated depreciation at the date of the gift amounted to $220,000.
The appraised fair market value of the donation at the date of the gift was $525,000 of which $35,000 was
the value of the land on which the building was situated. At what amount should the city record this
donated property in the governmental activities accounts at the government-wide level?
6. (TCO E) Which of the following resource inflows would be recorded as a revenue of a debt service
fund?
7. (TCO G) Which of the statements concerning agency funds is a true statement?
8. (TCO J) Which of the following items are typically reported differently between the governmental fund
statements and the governmental activities column of the government-wide statements?
9. (TCO H) A condition whereby the design or operation of a control does not allow management or
employees in the normal course of performing their assigned functions, to prevent or detect and correct
misstatements on a timely basis is called a(an)
10. (TCO H) Under FASB Standards, how would a not-for-profit organization recognize a conditional
pledge?
11. (TCO I) Which of the following items would not affect the amounts reported in the Revenues and
Gains section of the statement of activities for a private college or university?
12. (TCO I) The primary source of revenues for most hospitals are
1. (TCOs D, E, F, and G) Please list the name of the fund(s) in which each of the following transactions or
events would be recorded.
(1) Bonds of $1,000,000 from which the proceeds are to be used for the construction of a new City Hall
building.
(2) Salaries of $170,000 were paid to personnel in the office of the mayor.
(3) Installment payments of $75,000 were received from the property owners that were assessed for the
street improvement project.
(4) Over $65,000 of funds were received by employees by payroll deductions that are to be used for the
purchase of United States Government Bonds for those employees on an individual basis.
(5) Materials of $140,000 were to be used for the general repair of the streets that were purchased by the
city.
(6) Excess funds of $60,000 were transferred from the water utility to the General Fund.
2. (TCO F) The garbage collection of the city of Rockwell could be accounted for through the General
Fund, a Special Revenue Fund, or an Enterprise Fund. Please identify the circumstances in which each
of these fund types might be appropriate.
3. (TCO I) During the fiscal year of June 2012, Jefferson General Hospital, a not-for-profit healthcare
organization, had the following revenue-related transactions. (The amounts are summarized for the entire
year.)
(1) Healthcare services that are provided to inpatients and outpatients amounted to $9,640,000, of which
$420,000 were for charity cases, $865,000 was paid by uninsured patients, and $8,355,000 was billed to
Medicare, Medicaid, and other insurance companies.
(2) Pharmaceutical drugs and medicines sold by the hospital pharmacy amounted to $830,000, all of
which was paid by the customer or the insurance companies.
(3) Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,640,000 of
the $8,355,000 billed by the hospital during the year (please review transaction #1).
(4) A contribution of $4,000,000 (of which is unconditional) was received in cash from a donor to construct
a new facility for cancer patients. The full amount is expendable for that purpose. No activity has taken
place during the current year.
(5) A total of $810,000 was received from the following activities/sources: cafeteria and gift shop sales,
$630,000, unrestricted transfers from the Claremont Hospital Foundation, $110,000, and fees for medical
transcripts, $70,000.
(6) The allowance for uncollectible receivables was increased by $1,350.
Enter the templates provided in the answer space and complete the following requirements:
Requirements:
a. Record the preceding transactions in general journal form.
b. Prepare the unrestricted revenues, gains, and other support section of Jefferson General Hospital’s
statement of operations for the current year.
Templates:
Part A
……………………………………………………………………………..Debit…………………….. Credit
a. Cash
Accounts and Notes Receivable
Patient Service Revenue
b. Cash
Other revenues
c. Cash
Contractual adjustments
Accounts and Notes Receivable
d. Cash
Contributions-Temporarily Restricted
e. Cash
Other revenues
f. Provision for Bad Debts
Allowance for Uncollectible Receivables
Part B
Unrestricted Revenues, Gains, and Other Support:
Net Patient Service Revenue $ xxx
……………………..Other revenues xxx
4. (TCO E) Enter the template provided in the answer space and record the following transactions in the
Capital Projects Fund in the general journal for the following transactions.
a. McDowell County issued $4,000,000, 5% bonds with interest payable on a semiannual basis on July 1
and January 1. The bonds sold for 102 on July 30, 2012. Proceeds from the bond issue were to be used
for construction of the new sheriff station with all interest and premiums received to be used to service the
debt issue.
b. A state grant of $250,000 was received to help finance the construction of the sheriff station.
c. The General Fund transferred $300,000 for use in the construction of the new sheriff station.
d. A federal grant of $500,000 was received to help finance the construction of the new sheriff station.
e. A construction contract was awarded to the Young Construction Company in the amount of $4,750,000.
f. The new sheriff station was completed on May 1, 2013, three months ahead of schedule. The
construction expenditures amounted to $4,870,000. When the project was completed, the cost of the
sheriff station was allocated to the following, $310,000 for land, $4,180,000 for the building, and the
remainder to equipment.
g. The temporary accounts of the capital projects were closed to Fund Balance-Restricted. The amounts
are restricted due to the bond issue that is related to the construction of the sheriff station. The capital
projects fund will be closed by transferring remaining funds to the debt service fund for repayment.
Template:
Capital Project Fund (only) ……………………………………….debit………………………. credit
a. Cash
Other Financing Sources-Bond Proceeds
b. Cash
Revenues
c. Cash
Other Financing Sources-Transfer In
d. Cash
Revenues
e. Encumbrances
Reserve for Encumbrances
f. Construction Expenditures
Cash
Reserve for Encumbrances
Encumbrances
g. To close the temporary accounts:
Other Financing Sources-Bond Proceeds
Other Financing Sources-Transfers In
Revenues
Construction Expenditures
Fund Balance-Restricted
To close the Capital Projects Fund:
Other Financing Uses-Transfers Out
Cash
Fund Balance-Restricted
Other Financing Uses-Transfers Out
5. (TCO F) The following Statement of Cash Receipts and Disbursements was prepared by the
bookkeeper of the City of Glass City Museum of Science. The museum is a component unit of the City of
Glass City and must be included in the city’s financial statements. It began operations on January 1, 2012
with no liabilities or commitments and only two assets.
(1) $6,000 in cash and (2) Land that was acquired for $11,000.
Cash Basis
12 months
Cash Receipts:
Admission Fees $295,000
Loan from the Bank $50,000
Total deposits $345,000
Cash Disbursements:
Supplies $62,000
Wages 104,000
Utilities 48,000
Purchase of Equipment 70,000
Purchase of Fixtures
45,000
Interest on the Bank Loan 1,250
Total checks
$330,250
Excess of Receipts Over Disbursements $14,750
Additional Information:
• The loan from the bank is dated April 1 and is for a five-year period. Interest (5% annual rate) is paid on
Oct. 1 and April 1 of each year, beginning Oct. 1, 2012.
• The equipment was purchased on April 1, 2012 with the proceeds provided by the bank loan and has an
estimated useful life of 10 years (please use the straight-line method of depreciation) for computing
depreciation on the equipment. The fixtures were purchased on July 1, 2012 and has an estimated useful
life of five years (please use the straight-line method of depreciation) for computing depreciation on the
fixtures.
• Supplies on-hand amounted to $5,900 at December 31, 2012.
• All other bills and salaries related to 2012 had been paid by the close of business on December 31.
Required:
Enter the template provided in the answer space and complete the following requirements:
Please prepare a Statement of Revenues, Expenses, and Changes in Net Assets for the year ended
December 31, 2012 assuming the city plans to account for its activities on the accrual basis.
Template:
Operating Revenues:
Charges for Services $
Operating Expenses:
Wages $
Supplies ($62,000-5,900)
Utilities
Depreciation ($70,000/10*9/12)
+ ($45,000/5*6/12)
Total Operating Expenses
Operating Income (Loss) $
Nonoperating Expenses:
Interest $1,250 + ($50,000*5%*3/12)
Change in Net Assets
Net Assets, Jan. 1, 2012
Net Assets, Dec. 31, 2012
2. (TCO F) The garbage collection of the city of Rockwell could be accounted for through the General
Fund, a Special Revenue Fund, or an Enterprise Fund. Please identify the circumstances in which each
of these fund types might be appropriate.
3. (TCO I) During the fiscal year of June 2012, Jefferson General Hospital, a not-for-profit healthcare
organization, had the following revenue-related transactions. (The amounts are summarized for the entire
year.)
(1) Healthcare services that are provided to inpatients and outpatients amounted to $9,640,000, of which
$420,000 were for charity cases, $865,000 was paid by uninsured patients, and $8,355,000 was billed to
Medicare, Medicaid, and other insurance companies.
(2) Pharmaceutical drugs and medicines sold by the hospital pharmacy amounted to $830,000, all of
which was paid by the customer or the insurance companies.
(3) Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,640,000 of
the $8,355,000 billed by the hospital during the year (please review transaction #1).
(4) A contribution of $4,000,000 (of which is unconditional) was received in cash from a donor to construct
a new facility for cancer patients. The full amount is expendable for that purpose. No activity has taken
place during the current year.
(5) A total of $810,000 was received from the following activities/sources: cafeteria and gift shop sales,
$630,000, unrestricted transfers from the Claremont Hospital Foundation, $110,000, and fees for medical
transcripts, $70,000.
(6) The allowance for uncollectible receivables was increased by $1,350.
Enter the templates provided in the answer space and complete the following requirements:
Requirements:
a. Record the preceding transactions in general journal form.
b. Prepare the unrestricted revenues, gains, and other support section of Jefferson General Hospital’s
statement of operations for the current year.
Templates:
Part A
……………………………………………………………………………..Debit…………………….. Credit
a. Cash
Accounts and Notes Receivable
Patient Service Revenue
b. Cash
Other revenues
c. Cash
Contractual adjustments
Accounts and Notes Receivable
d. Cash
Contributions-Temporarily Restricted
e. Cash
Other revenues
f. Provision for Bad Debts
Allowance for Uncollectible Receivables
Part B
Unrestricted Revenues, Gains, and Other Support:
Net Patient Service Revenue $ xxx
……………………..Other revenues xxx
4. (TCO E) Enter the template provided in the answer space and record the following transactions in the
Capital Projects Fund in the general journal for the following transactions.
a. McDowell County issued $4,000,000, 5% bonds with interest payable on a semiannual basis on July 1
and January 1. The bonds sold for 102 on July 30, 2012. Proceeds from the bond issue were to be used
for construction of the new sheriff station with all interest and premiums received to be used to service the
debt issue.
b. A state grant of $250,000 was received to help finance the construction of the sheriff station.
c. The General Fund transferred $300,000 for use in the construction of the new sheriff station.
d. A federal grant of $500,000 was received to help finance the construction of the new sheriff station.
e. A construction contract was awarded to the Young Construction Company in the amount of $4,750,000.
f. The new sheriff station was completed on May 1, 2013, three months ahead of schedule. The
construction expenditures amounted to $4,870,000. When the project was completed, the cost of the
sheriff station was allocated to the following, $310,000 for land, $4,180,000 for the building, and the
remainder to equipment.
g. The temporary accounts of the capital projects were closed to Fund Balance-Restricted. The amounts
are restricted due to the bond issue that is related to the construction of the sheriff station. The capital
projects fund will be closed by transferring remaining funds to the debt service fund for repayment.
Template:
Capital Project Fund (only) ……………………………………….debit………………………. credit
a. Cash
Other Financing Sources-Bond Proceeds
b. Cash
Revenues
c. Cash
Other Financing Sources-Transfer In
d. Cash
Revenues
e. Encumbrances
Reserve for Encumbrances
f. Construction Expenditures
Cash
Reserve for Encumbrances
Encumbrances
g. To close the temporary accounts:
Other Financing Sources-Bond Proceeds
Other Financing Sources-Transfers In
Revenues
Construction Expenditures
Fund Balance-Restricted
To close the Capital Projects Fund:
Other Financing Uses-Transfers Out
Cash
Fund Balance-Restricted
Other Financing Uses-Transfers Out
5. (TCO F) The following Statement of Cash Receipts and Disbursements was prepared by the
bookkeeper of the City of Glass City Museum of Science. The museum is a component unit of the City of
Glass City and must be included in the city’s financial statements. It began operations on January 1, 2012
with no liabilities or commitments and only two assets.
(1) $6,000 in cash and (2) Land that was acquired for $11,000.
Cash Basis
12 months
Cash Receipts:
Admission Fees
Loan from the Bank
Total deposits
$295,000
$50,000
$345,000
Cash Disbursements:
Supplies
Wages
$62,000
104,000
Utilities
Purchase of Equipment
48,000
70,000
Purchase of Fixtures
Interest on the Bank Loan
Total checks
45,000
1,250
$330,250
Excess of Receipts Over Disbursements
$14,750
Additional Information:
• The loan from the bank is dated April 1 and is for a five-year period. Interest (5% annual rate) is paid on
Oct. 1 and April 1 of each year, beginning Oct. 1, 2012.
• The equipment was purchased on April 1, 2012 with the proceeds provided by the bank loan and has an
estimated useful life of 10 years (please use the straight-line method of depreciation) for computing
depreciation on the equipment. The fixtures were purchased on July 1, 2012 and has an estimated useful
life of five years (please use the straight-line method of depreciation) for computing depreciation on the
fixtures.
• Supplies on-hand amounted to $5,900 at December 31, 2012.
• All other bills and salaries related to 2012 had been paid by the close of business on December 31.
Required:
Enter the template provided in the answer space and complete the following requirements:
Please prepare a Statement of Revenues, Expenses, and Changes in Net Assets for the year ended
December 31, 2012 assuming the city plans to account for its activities on the accrual basis.
Template:
Operating Revenues:
Charges for Services $
Operating Expenses:
Wages $
Supplies ($62,000-5,900)
Utilities
Depreciation ($70,000/10*9/12)
+ ($45,000/5*6/12)
Total Operating Expenses
Operating Income (Loss) $
Nonoperating Expenses:
Interest $1,250 + ($50,000*5%*3/12)
Change in Net Assets
Net Assets, Jan. 1, 2012
Net Assets, Dec. 31, 2012
(TCO F) Any activities that produce goods or services to be provided to other departments or other
governmental units would be reported in which fund?
TCO F) Which of the following is a true statement regarding the cash flow statements of a proprietary
fund?
(TCO G) A fund that is the result of an agreement between a contributor and a government that the
principal and/or income of trust assets that is for the benefit of individuals, organizations, or other
governments is a(n)
(TCO H) Public sector audits differ from those of commercial businesses in which of the following
instances?
(TCO J) Under GASB Standards, if a government only has six government funds and two enterprise
funds, what is the required number of basic financial statements that it would need to prepare?
(TCO H) Which of the following would be considered “contribution revenue or support” of a not-for-profit
organization?
(TCO H) Describe the different types of governmental audits and attestation engagements.
$45.00 – Purchase
