GASB 34 Reporting Model Explained

CHAPTER 15
UNDERSTANDING THE ISSUES

1. GASB Statement No. 34 stipulates a
new reporting model that includes two
separate, but related sets of financial
statements. The first set, the fund financial
statements,
focuses on reporting activity as a collection
of separate funds with a current working
capital focus that uses a modified accrual
basis of accounting. The second set
contains government-wide statements that
concentrate on the government as a whole
with an economic long-term focus using full
accrual-basis accounting. The value of both
perspectives is the retention of a near cash
or working capital focus on funding
government with a longer-term focus that
measures whether such services can
continue without attention to condition of all
capital assets and recognition of and
planning for increased expenditures in
future periods. Capital assets and longterm
liabilities are not accounted for in the
governmental funds but will be accounted
for and reported in the government-wide
financial statements. Thus, the working
capital fund balance will be replaced with a
long-term notion of net assetsbroken into
unrestricted, restricted, and capital, net of
related debt.
best serves the budget-planning process

and answers questions relating to how
much resources are needed to pay for the
current level of services.
3. Budgets are the legal authorization to
raise revenue, incur long-term debt, and
appropriate
resources.
Authorized
expenditures are termed appropriations.
Budgetary totals, including appropriations,
are recorded in the general ledger as
control accounts to allow for budgetary
comparisons in the ledgers as well as to
facilitate financial reporting of a budgetary
comparison statement.
4. The advantage of reporting designations
of the fund balance is improved
communications of decisions made by the
common council or town/village board that
will impact the availability of resources for
other purposes. Categorizing the fund
balance first into nonspendable allows
users of the financial statements to assess
the governments ability to cover financial
obligations and invest in future assets.
Further classifying the fund balance by
restriced, committed, assigned, and
unassigned allows the user to assess the
extent to which the spendable fund balance
may be appropriate for future uses of the
government.
2. Separating activity into governmental,

proprietary, and fiduciary funds allows for
detailed reporting of resources and
spending. Separating of activities also
allows for a different measurement focus
and basis of accounting depending on
whether activities are general government
or business-type activities. In addition,
since the govern-mental activities are
accounted for using a modified accrual
basis
of
accounting
in
order to capture financial resource
information, the account groups have
served to record (i.e., list) the long-term
capital
assets and liabilities. Proponents of this
model argue that information generated
5. The encumbrance system is designed

as an early indicator or an expected
expenditure to prevent overspending and
to plan for payment of an expected
liability. It is an estimate of an expenditure
that may or may not be realized by yearend but will require the use of existing or
future financial resources.
6. The governmental funds are designed to
capture financial resources information.
Therefore, when a capital asset is acquired
or sold, the resources (financial resources
used or acquired) are recorded in the
funds. The account groups are designed to
provide information on the number and
condition of these capital assets. The same
153
Ch. 15Exercises
is true for long-term liabilities. When debt is
incurred, the cash is recorded in the fund to
capture the inflow of financial resources.
But the debt is recorded in the account
group. When debt is repaid, the outflow of
cash is recorded in the fund, and the debt
is removed from the account group. Since
the fund and account groups capture
different information, making a journal entry
only in the fund would adequately record
flows of financial resources but not record
the balances of long-term liabilities and/or
capital assets.
7. (Appendix) The 13 basic principles of

government accounting are found in GASB
Statement No. 1 and in Codification of
Governmental Accounting and Financial
Reporting Standards. They form a model of
fund accounting theory and help anchor the
subsequent work of the GASB as detailed
in Chapters 1517 of this text.
154
EXERCISES
EXERCISE 15-1
(1) c
Items (a) and (b) are Other Financing Sources, while (d) is a reduction of
Expenditures.
(2) d
(a), (b), and (c) represent outflows of financial resources to acquire goods
and services. The consumption, not the purchase of inventory, is an expenditure.
(3)
Representing potential inflow of assets, Estimated Revenues is debited.
(4) b
Taxes ReceivableCurrent is debited with offsetting credits to an
allowance for uncollectible taxes and revenues.
(5) a
Donated fixed assets are recorded in the general fixed asset account
group at their estimated fair value when received.
(6) c
Long-term debt related to governmental funds may be operating debt or
general long-term capital debt.
(7) b
The purchase of equipment is an outflow of resources from the general
fund. An additional entry to record the fixed asset will be made in the account group.
(8) b
Expenditures are closed along with the other nominal accounts to
determine an increase or a decrease in the fund balance from the current-period
operations.
(9) d
When a purchase order is approved, Encumbrances is debited to reflect
the expected expenditure. A reserve is also established by a credit to Fund Balance
Reserved for Encumbrances.
(10) a
The lease obligation is long-term debt and should be recorded in the
account group.
EXERCISE 15-2
(1)
a Grants without restriction are recorded as revenue when received.
(2)
e These pension expenditures will be recorded in the internal service fund.
(3)
b This is an expenditure by the general fund.
(4)
c This is recorded as a transfer to the swimming pool fund.
(5)
e A loan only affects the balance sheet accounts.
(6)
(7)
c
This is a general fund contribution to establish an internal service fund and not an
expenditure for services.
b Payments on an operating lease are expenditures for the general fund.
Ch. 15Exercises
EXERCISE 15-3
Estimated Revenues ($205,000 + $7,000 + $90,000 + $50,000)
Estimated Other Financing Sources ($100,000 + $15,000)
Budgetary Fund Balance
352,000
115,000
63,000
Appropriations
500,000
Estimated Other Financing Uses ($20,000 + $10,000)
30,000
(Note to Instructor: Property taxes paid by a proprietary fund are considered revenue.)
EXERCISE 15-4
Jan.
Feb.
Cash
275,000
Tax Anticipation Notes Payable
To record borrowing.
275,000
Cash
12,000
Tax Liens Receivable
10,000
Revenues
2,000
To record collection of tax liens.
Cash
13,000
13,000
To record collection of tax liens, sale of property.
Allowance for Uncollectible Tax Liens

23,000
17,000
Revenues
6,000
To close allowance.
Apr.
Cash
104,500
Delinquent Property Taxes Receivable
Revenues
4,500
To record collection of delinquent property taxes.

35,000
Delinquent Property Taxes Receivable
To transfer delinquent property taxes to tax liens.
100,000
35,000
Allowance for Uncollectible Delinquent Taxes

40,000
Allowance for Uncollectible Tax Liens
35,000
Revenues
5,000
To transfer allowance for uncollectible delinquent
taxes to allowance for uncollectible tax liens.
July
Property Taxes Receivable

422,000
Allowance for Property Taxes Receivable
21,100
Revenues
400,900
To record current property tax levy.
Ch. 15Exercises
Exercise 15-4, Concluded

Sept. Cash
345,000
Property Taxes Receivable
To collect current property taxes.
345,000
Tax Anticipation Notes Payable

275,000
Expenditures
18,000
Cash
293,000
To pay off tax anticipation notes.
EXERCISE 15-5
(1)...........................................................................................Cash
45,000
........................................................................................................ Other Financing Sources
........................................................................................................
45,000
........................................................................................................
To transfer
from municipal trust fund.
(2)......No entry in the general fund for land. Record in the general
.............................................................fixed assets account group:
................................................................................................Land
75,000
........................................................................................................ Investment in General Fixed
AssetsDonations..........................................................................
75,000
........................................................................................................
To record
donation of park.
(3)............................................................................Due from State
........................................................................................................
........................................................................................................
........................................................................................................
state grant.
30,000
Revenues
30,000
To record
(4)...........................................................................................Cash
9,000
........................................................................................................ Other Financing Sources
........................................................................................................
9,000
........................................................................................................
To record sale
of fire truck.
.............................Additional entry in General Fixed Assets Group:
......Investment in General Fixed AssetsGeneral Fund Revenues
........................................................................................................
........................................................................................................
36,000
Equipment
36,000
(5)...........................................................................................Cash
........................................................................................................
Revenues
........................................................................................................
2,500
........................................................................................................ Deferred Revenue
........................................................................................................
2,500
5,000
........................................................................................................
of park stickers.
To record sale
Ch. 15Exercises
EXERCISE 15-6
(1)........Expenditures ($100,000 + $50,000 + $125,000 + $13,000)
288,000
.......................................................Tax Anticipation Notes Payable
200,000
.......................................................................Inventory of Supplies
45,000
........................................................................................................ Vouchers Payable
........................................................................................................
533,000
........................................................................................................
To record
payment of vouchers.
(2).................................................................Other Financing Uses
........................................................................................................
........................................................................................................
........................................................................................................
debt service fund.
50,000
Cash
50,000
To transfer to
(3)...............................................................................Expenditures
43,000
........................................................................................................ Inventory of Supplies
........................................................................................................
43,000
........................................................................................................
To record
consumption of inventory.
............................................................Fund BalanceUnassigned
2,000
........................................................................................................ Fund Balance
Nonspendable.................................................................................
2,000
........................................................................................................
To adjust fund
balance to match inventory balance.
EXERCISE 15-7
(1)............................................................................Encumbrances
18,000
........................................................................................................ Fund BalanceUnassigned
........................................................................................................
18,000
........................................................................................................
To restore
previous years encumbrances.
(2)............................................................................Encumbrances
70,000
........................................................................................................ Fund BalanceAssigned or
Committed.......................................................................................
70,000
........................................................................................................
To record
current encumbrances.
(3).....................................Fund BalanceAssigned or Committed
88,000
........................................................................................................ Encumbrances
........................................................................................................
88,000
........................................................................................................
To reverse
encumbrances for orders received.
.......................................................................Inventory of Supplies
........................................................................................................
82,000
82,000
........................................................................................................
purchase of inventory.
To record
(4).............................Expenditures ($25,000 + $82,000 $30,000)

77,000
........................................................................................................ Inventory of Supplies
........................................................................................................
77,000
........................................................................................................
To record use
of inventory.
........................................................................................................ Fund Balance
Nonspendable.................................................................................
........................................................................................................
nonspendable fund balance to match inventory.
5,000
5,000
To adjust
Ch. 15Exercises
EXERCISE 15-8
Date
Item
January 1
January 15
February 1
February 15
Budget
Encumbrances
Vouchers
Vouchers
3,700
Vouchers
1,400
Inventory
2,900
June 3
December 31
Encumbrances
Debit
Credit
Balance
Expenditures
5,000
Unobligated
Balance
14,000
12,000
14,000
2,000
23,000
9,000
4,000
12,300
2,000
4,300
(1,500)
EXERCISE 15-9
(a)...................................................................Estimated Revenues
520,000
........................................................................................................ Appropriations
........................................................................................................
515,000
........................................................................................................ Budgetary Fund Balance
Unassigned.....................................................................................
5,000
........................................................................................................
To record
budget for the year.
(b)........................................................Taxes ReceivableCurrent
378,788
........................................................................................................ Allowance for Uncollectible
Current Taxes..................................................................................
3,788
........................................................................................................
Revenues
........................................................................................................
375,000
........................................................................................................
To record tax
levy.
(c)............................................................................Encumbrances
240,000
........................................................................................................ Fund BalanceAssigned or
Committed.......................................................................................
240,000
........................................................................................................
To record
purchase orders authorized.
(d)...........................................................................................Cash
280,000
........................................................................................................ Taxes ReceivableCurrent
........................................................................................................
280,000
........................................................................................................
To record
receipt of tax payments.
(e).....................................Fund BalanceAssigned or Committed
223,000
........................................................................................................ Encumbrances
........................................................................................................
223,000
........................................................................................................
To reverse
encumbrance entry for items invoiced.
...................................................................................Expenditures
225,000
........................................................................................................
225,000
........................................................................................................
To record
invoices vouchered.
(f)................................................................................Expenditures
135,000
........................................................................................................
135,000
........................................................................................................
To record
salaries approved for payment.
(g)...........................................................................................Cash
........................................................................................................
........................................................................................................
........................................................................................................
receipt of a grant-in-aid.
100,000
Revenues
100,000
To record
Ch. 15Exercises

(h)...........................................................................................Cash
........................................................................................................
........................................................................................................
........................................................................................................
receipt of miscellaneous revenues.
(i)................................................................................Expenditures
........................................................................................................
........................................................................................................
........................................................................................................
purchase of property. (The property would also
........................................................................................................
the general fixed assets account group.)
10,000
Revenues
10,000
To record
120,000
Cash
120,000
To record
be entered in
(j). .No entry. Recorded only in general fixed assets account group.
(k)..................................................................Other Financing Uses
12,000
........................................................................................................ Due to Other Funds
........................................................................................................
12,000
........................................................................................................
To record
amount due other funds and approved for
........................................................................................................
payment.
(l).............................................................................Due from State
........................................................................................................
........................................................................................................
........................................................................................................
share of state sales taxes receivable.
(m)......................................................................Vouchers Payable
........................................................................................................
........................................................................................................
........................................................................................................
vouchers paid.
30,000
Revenues
30,000
To record
175,000
Cash
175,000
To record
(n)......................................Budgetary Fund BalanceUnassigned

5,000
.................................................................................Appropriations
515,000
........................................................................................................ Estimated Revenues
........................................................................................................
520,000
........................................................................................................
To reverse
budgetary entry.
........................................................................................Revenues
515,000
........................................................................................................ Expenditures
........................................................................................................
480,000
........................................................................................................ Other Financing Uses
........................................................................................................
12,000
........................................................................................................
23,000
........................................................................................................ Encumbrances
........................................................................................................
17,000
........................................................................................................
nominal accounts.
17,000
To close
Ch. 15Exercises
EXERCISE 15-10
(1)
Closing entries:
.................................................................................Appropriations
650,000
.....................................................Estimated Other Financing Uses
50,000
.................................................................Budgetary Fund Balance
50,000
........................................................................................................
600,000
........................................................................................................ Estimated Other Financing
Sources...........................................................................................
150,000
.................................................................Other Financing Sources
166,500
........................................................................................Revenues
595,000
........................................................................................................ Expenditures
........................................................................................................
588,000
........................................................................................................
46,500
........................................................................................................
127,000
........................................................................................................ Encumbrances
........................................................................................................
60,000
(2)
60,000
Shorewood
Village
General
Fund
Budgetary Comparison Schedule
For Fiscal Year Ended June 30,
2019
Budget
Revenues
$ 595,000
Expenditures
588,000
Excess (shortage) of revenues over
expenditures
(50,000)
57,000
Other financing sources
$ 166,500
Other financing uses
46,500
Total other financing sources (uses)
$ 120,000
Actual
$
(5,000)
Variance
Favorable
(Unfavorable)
600,000
650,000
62,000
$
$
7,000
$
16,500
$
150,000
50,000
3,500
$
20,000
100,000
Fund balances, July 1, 2018

$ 92,000
Fund balances, June 30, 2019
$ 219,000
$
$
$
0
$
77,000
92,000
142,000
Ch. 15Exercises

(3)
Shorewood Village
General Fund Balance Sheet
June 30, 2019
Assets
Cash................................
91,000
Receivables (net).............
Liabilities and Fund Equity

$190,000
Liabilities: Vouchers payable...........
120,000
Fund balances:
................Assigned or committed
60,000
.................................Unassigned
159,000*
..........................Total fund equity
$219,000
................................................... Total assets
liabilities and fund equity.............
$310,000
$310,000.....................................
Total
*$92,000 balance plus $761,500 inflows minus $634,500 outflows minus $60,000
encumbrances
EXERCISE 15-11
Event
Fund or Group
Purchase
General Fund
Sale
(10 years
later)
Entry
Expenditures........................................
Cash................................................
65,000
Fund BalanceAssigned or Committed

Encumbrances................................
70,000
General
Fixed Assets
Account Group
Land.....................................................
Investment in General Fixed Assets
General Fund Revenues.............
65,000
General Fund
Cash....................................................
Other Financing Sources.................
Revenues........................................
General
Fixed Assets
Account Group

General Fund Revenues.................
Land............................................
65,000
70,000
65,000
105,000
65,000
40,000
65,000
65,000
EXERCISE 15-12
(a)
Land
325,000
Buildings
975,000
Investment
in General Fixed AssetsGeneral Funds

1,300,000
To record property purchase.
(b)
Land
330,000
Buildings
220,000
Investment
in General Fixed AssetsDonations

550,000
To record donated property at its fair value.
(c)
Construction in Progress
800,000
Investment
in General Fixed AssetsCapital Projects Funds

(General Obligation Bonds)
800,000
To record
cost of work to date.
(d)
Machinery and Equipment

190,000
Investment
in General Fixed AssetsGeneral Fund

Revenues
190,000
To record
fire engine purchase at full value.
Investment in General Fixed AssetsGeneral Fund Revenues
100,000
Machinery
and Equipment
100,000
To record trade-in.
Ch. 15Exercises
(e)
Infrastructure
250,000
Investment
in General Fixed AssetsCapital Projects Funds

250,000
To record cost of new street.
(f)
Computer Software
70,000
Investment
in General Fixed AssetsGeneral Fund Revenues

70,000
EXERCISE 15-13
(1)
Amount to Be Provided for Compensated Absences

2,200,000
Unfunded
Compensated Absences
2,200,000
To record the noncurrent portion of the obligation for
vacations.
(2)
Unfunded Compensated Absences

400,000
Amount to
Be Provided for Compensated Absences

400,000
To reduce the long-term obligation for vacations.
(3)
Amount to Be Provided for Claims and Judgments

11,000,000
Claims and
Judgments Payable
11,000,000
To record the noncurrent portion of the judgment against
the city.

(4)...............................Amount to Be Provided for Payment of Bonds
100,000,000
........................................................................................................... General Obligation Bonds
Payable..............................................................................................
100,000,000
...........................................................................................................
To record the
issuance of general obligation bonds at
...........................................................................................................
maturity
value.
(5)...................................Amount Available in the Debt Service Fund
1,000,000
........................................................................................................... Amount to Be Provided for
Payment of Bonds..............................................................................
1,000,000
...........................................................................................................
To record
accumulation of resources in the debt service
...........................................................................................................
fund for bond
principal.
(6)...................................Amount Available in the Debt Service Fund
4,800,000
Payment of Bonds..............................................................................
4,800,000
...........................................................................................................
To record
interest earned and appreciation in fair value
...........................................................................................................
of
investments in the debt service fund.
EXERCISE 15-14
(a)......................Amount to Be Provided for Payment of Term Bonds
13,000,000
........................................................................................................... Term Bonds Payable
........................................................................................................... 13,000,000
...........................................................................................................
To record
issuance of general obligation bonds at
...........................................................................................................
maturity
value to finance construction of an art center.
(b)................Amount Available in Debt Service FundsTerm Bonds
1,300,000
Payment of Term Bonds.....................................................................
1,300,000
...........................................................................................................
To record
allocation to debt service fund.
(c).....................Amount to Be Provided for Payment of Serial Bonds
6,000,000
........................................................................................................... Serial Bonds Payable
...........................................................................................................
6,000,000
...........................................................................................................
To record
serial bonds issued to finance construction of
...........................................................................................................
a health
center.
Ch. 15Exercises
....................Amount Available in Debt Service FundsSerial Bonds

600,000
Payment of Serial Bonds....................................................................
600,000
...........................................................................................................
To record
allocation to debt service fund ($6,000,000/10).
(d).....................................................................Serial Bonds Payable
600,000
........................................................................................................... Amount Available in Debt
Service FundsSerial Bonds.............................................................
600,000
...........................................................................................................
To record
retirement of serial bond issue.
EXERCISE 15-15
(Note to Instructor: The GASB Web site lists all of the pronouncements of the board. Individual
standards can be purchased, but current exposure drafts and discussion memoranda can be
obtained for no fee. In addition, the GASB mission, board membership, and meeting schedules
are found on the site.)
Ch. 15Problems
PROBLEMS
PROBLEM 15-1
(1)
b
Funds are used to separate reporting of the diverse variety of governmental
activities and to meet legal provisions stipulating use of resources imposed on the
governmental unit.
(2)
a
The Governmental Accounting Standards Board is the authoritative body for
financial reporting standards used by state and local governments.
(3)
b
The GASB stipulated that the measurement focus for governmental funds is the
flow of financial resources.
(4)
c
Interperiod equity seeks to determine whether current-year revenues are
sufficient to pay for current-year services or whether future taxpayers will be required to
assume burdens for services previously provided. The flow of financial resources
measurement focus measures the extent to which financial resources obtained during a
period are sufficient to cover claims incurred during that period against financial
resources of a governmental fund. The GASB recognized that because budgetary and
fund accounting practices cause costs of government activities to be spread among a
number of funds, general purpose financial reporting must also include the
measurement of the cost of services provided during a period.
(5)
a
Long-term debt used to purchase fixed assets is recorded in the general fund as
an other financial resource, but the debt itself is recorded in the general long-term debt
account group.
(6)
d
Current standards specify that neither interest nor principal on long-term debt
should be accrued in advance of the year in which it is due. Governments may,
however, opt to accrue principal if resources are available in the debt service fund by
year-end.
(7)
b
Reporting outstanding encumbrances as a fund balance reserve indicates that
not all of the resources in the fund are available for new expenditures.
PROBLEM 15-2
(1)
Encumbrance control is increased when an order is placed and decreased when the
voucher is recorded. When encumbrances are closed at year-end, they are decreased.
(2)
a
Grants from outside units are revenues unless they require the prior recording of
an expenditure that is then reimbursed.
(3)
c
The appropriation still available for use is the original appropriation less
expenditures and encumbrances.
(4)
c
These notes are short-term operating debt that will be repaid out of current
revenues.
(5)
d
When supplies are received, the original entry to encumber the estimated cost is
reversed.
(6)
b A hypothetical entry to record the tax levy is:

Taxes ReceivableCurrent
100,000
Ch. 15Problems
Allowance for Uncollectible Current Taxes

Revenues
96,000
4,000
Ch. 15Problems
Problem 15-2, Concluded

Because revenues are estimated and recorded net of the uncollectible, a
decrease in the allowance is a revision (in this case an increase) of revenues. This is
true even if the revenues were recorded in a prior period.
(7)
b
Revenues are recognized when measurable and available to meet current-period
expenditures. This is interpreted to include collections of the current period or shortly
after year-end (usually within 60 days of year-end).
(8)
a
The general fixed assets account group records the fixed assets of governmental
funds but not proprietary funds or trust funds.
(9)
c
Expenditures are recorded when the liability is incurred. Under the modified
accrual basis of accounting, the noncurrent liability is recorded in the general long-term
debt account group.
(10)
d
The fixed asset is recorded in the account group at its fair value with a credit to
Investment in General Fixed Assets identifying the original funding source.
PROBLEM 15-3
(1) At inception of the lease:
General Fund
Expenditures................................................ 800,000
Other Financing Sources........................
To record the acquisition of the
equipment under capital lease.
General
Fixed Assets
Account Group
Leased Equipment ....................................... 800,000

Investment in General Fixed
AssetsCapital Leases.....................
To record the equipment.
General
Long-Term
Debt Account
Group
Amount to Be Provided................................. 800,000

Capital Lease Obligation.........................
To record the capital lease
obligation.
800,000
800,000
800,000
(2) First interest payment:

General Fund
General
Fixed Assets
Account Group
Expenditures (interest) ($800,000 6%)......

Expenditures (principal)................................
Cash.......................................................
To record the first lease payment
of principal and interest.
Investment in General
Fixed AssetsCapital Leases................
Leased Equipment............................
To record the depreciation on the
leased equipment (optional entry
under current standards).
48,000
60,694
108,694
80,000
80,000
Ch. 15Problems

General
Long-Term
Debt Account
Group
Capital Lease Obligation...............................

60,694
Amount to Be Provided...........................
To record the reduction of the lease
principal.
Note: Each lease payment reduces
the principal balance of the obligation.,
Therefore each subsequent payment
will allocate a smaller portion to interest
and a larger portion to principal.
60,694
PROBLEM 15-4
(1)
Revenues
(a)
Estimated
400,000
Appropriations
362,000
Budgetary Fund BalanceUnassigned
38,000
To record
budget.
Encumbrances
16,000
Fund BalanceUnassigned
16,000
To reinstate
encumbrance.
Assigned
(b) Fund Balance

16,000
Encumbrances
16,000
To reverse
encumbrance entry.
Expenditures
16,400
Vouchers Payable
16,400
Ch. 15Problems
To record
voucher.
(c)
Taxes
300,000
ReceivableCurrent
Allowance for Uncollectible Current Taxes (4%)
12,000
Revenues
288,000
To record tax
levy.
(d)
Cash
355,600
250,000
Taxes ReceivableDelinquent
84,000
Interest and Penalties Receivable on Taxes
7,600
Due from Other Funds
14,000
To record
receipts.
Allowance for
12,000
Allowance for
800
Revenues
3,600
Uncollectible Delinquent Taxes

Uncollectible Interest and Penalties
16,000
Interest and Penalties Receivable on Taxes
400
Ch. 15Problems

(e)
Encumbrances
276,000
Fund BalanceAssigned
276,000
To record
encumbrances.
Supplies
16,000
Expenditures
244,000
Inventory
Vouchers Payable
260,000
To record
vouchers.
Fund Balance
254,000
Assigned
Encumbrances
254,000
To record
encumbrance entry.
Payable
(f) Expenditures
50,000
Vouchers
280,000
Cash
330,000
To record
payments.
(g) Expenditures
16,000
Vouchers Payable
16,000
To record
voucher for automobile.
Ch. 15Problems
(h) Expenditures
10,000
Inventory of Supplies
10,000
To record use
of inventory.
Fund Balance
6,000
Unassigned
Fund BalanceNonspendable
6,000
To establish
desired fund balance designation.
(2)
Appropriations
362,000
38,000
Estimated
Revenues
400,000
52,000
Revenues
284,400
Expenditures
336,400
22,000
Encumbrances
22,000
(3)
Statement of Revenues, Expenditures, and Changes in Fund Balance:

Revenues
$284,400
Expenditures
336,400
Excess of Revenues over Expenditures*
Fund Balances, July 1, 2018
Fund Balances, June 30, 2019
(52,000)
76,000
$
24,000
* In practice, this title remains as shown even though the result is negative (a deficit).
However, alternate wording, such as Excess of Expenditures over Revenues, could be
used.
Ch. 15Problems
PROBLEM 15-5
(a)
Estimated Revenues
400,000
Estimated Other Financing Sources
200,000
Appropriations
560,000
Estimated Other Financing Uses
Encumbrances
12,000
Taxes ReceivableCurrent ($220,800/96%)
Revenues
220,800
(c)
Encumbrances
316,000
(e)
(f)
(g)
(h)
20,000
12,000
(b)
(d)
20,000
230,000
9,200
316,000
20,000
Fund BalanceDesignated for Capital Outlays
Cash
664,000
Allowance for Uncollectible Delinquent Taxes
Expenditures
4,000
Revenues
178,000
Other Financing Sources
Other Financing Sources
Encumbrances
20,000
8,000
46,000
226,000
200,000
18,000
302,000
302,000
Expenditures
308,000
Vouchers Payable
308,000
Inventory
40,000
Expenditures
204,000
Other Financing Uses
20,000
Vouchers Payable
Due to Debt Service Fund
244,000
20,000
Revenues
2,000
Deferred Revenues
2,000

Revenues ($226,000 $220,800)
5,200
5,200
Ch. 15Problems

(i)
Vouchers Payable
Cash
(j)
Expenditures
Inventory
580,000
580,000
46,000
46,000
Fund BalanceNonspendable
6,000
6,000
PROBLEM 15-6
(1)...............................................................................................(a)Estimated Revenues
...........................................................................................900,000
Sources...........................................................................................
27,000
........................................................................................................
Appropriations
........................................................................................................
875,000
........................................................................................................
Estimated
Other Financing Uses......................................................................
20,000
........................................................................................................
Budgetary
Fund BalanceUnassigned............................................................
32,000
........................................................................................................
......................................................To record the approved budget.
....................................................................................................(b)Encumbrances
.............................................................................................15,000
........................................................................................................
Fund Balance
Unassigned..................................................................................
15,000
........................................................................................................
..............................To return encumbered amount to fund balance.
....................................................................................................(c)Taxes ReceivableCurrent
...........................................................................................650,000
........................................................................................................
Allowance for
Uncollectible Current Taxes............................................................
6,500
........................................................................................................
Revenues
........................................................................................................
643,500
........................................................................................................
...........................................................................To record tax levy.
....................................................................................................(d)Fund BalanceReserved for
Encumbrances................................................................................
25,000
........................................................................................................
................................................................................Encumbrances
.............................................................................................25,000
........................................................................................................
.......................................To return reserve to unassigned balance.
Ch. 15Problems
........................................................................................................ Expenditures
.............................................................................................24,000
........................................................................................................
Payable...........................................................................................
........................................................................................................
.........................................................To voucher invoices received.
....................................................................................................(e)
..........................................................................................644,000
........................................................................................................
ReceivableCurrent.......................................................................
........................................................................................................
ReceivableDelinquent..................................................................
........................................................................................................
....................................To record receipt of property tax payments.
Vouchers
24,000
Cash
Taxes
624,000
Taxes
20,000
........................................................................................................ Taxes Receivable

Delinquent.......................................................................................
26,000
Current Taxes..................................................................................
6,500
........................................................................................................
Taxes
ReceivableCurrent.......................................................................
26,000
........................................................................................................
Allowance for
Uncollectible Delinquent Taxes.......................................................
6,500
............................................................................
To record
delinquent taxes and reclassify related
estimated uncollectibles.
Ch. 15Problems
Problem 15-6, Continued

........................................................................................................ Tax Liens Receivable
..............................................................................................8,000
Delinquent Taxes............................................................................
3,000
........................................................................................................
Taxes
ReceivableDelinquent..................................................................
8,000
........................................................................................................
Allowance for
Uncollectible Tax Liens....................................................................
3,000
............................................................................
To record tax
liens and reclassify related
uncollectibles.
........................................................................................................
.....................................................................................................(f)Encumbrances
..........................................................................................700,000
........................................................................................................
Fund Balance
Assigned......................................................................................
700,000
........................................................................................................
..........................................To record issuance of purchase orders.
........................................................................................................ Fund BalanceAssigned
..........................................................................................680,000
........................................................................................................
................................................................................Encumbrances
..........................................................................................680,000
........................................................................................................
..........................To reverse encumbrance entry for items invoiced.
........................................................................................................ Expenditures
..........................................................................................675,000
........................................................................................................ Supplies Inventory
............................................................................................10,000
........................................................................................................
Vouchers
Payable...........................................................................................
685,000
........................................................................................................
.........................................................To voucher invoices received.
....................................................................................................(g) Expenditures
...............................................................................................8,000
........................................................................................................
Inventory.........................................................................................
........................................................................................................
...............................................To record consumption of inventory.
Supplies
8,000

...............................................................................................2,000
........................................................................................................
Fund Balance
Nonspendable..............................................................................
2,000
........................................................................................................
.........................................................To establish supplies reserve.
Ch. 15Problems
....................................................................................................(h) Expenditures
...........................................................................................250,000
........................................................................................................
........................................................................................................
............................................................................
purchase of land. (Also requires
entry in general fixed assets account group.)
Cash
250,000
To record
.....................................................................................................(i)
Cash
...........................................................................................300,000
........................................................................................................ Due from State Government
.............................................................................................60,000
........................................................................................................
Revenues
........................................................................................................
360,000
........................................................................................................
.............................................To record federal and state revenues.
.....................................................................................................(j)Other Financing Uses
.............................................................................................20,000
........................................................................................................
Cash
........................................................................................................
20,000
............................................................................
To record
transfers made to other funds.
(Requires entries in other funds.)
....................................................................................................(k) Expenditures
.............................................................................................50,000
........................................................................................................
........................................................................................................
............................................................................
mortgage payment. (Requires entry
in general long-term debt account group.)
Cash
50,000
To record
Ch. 15Problems

.....................................................................................................(l)
Cash
...........................................................................................100,000
........................................................................................................ Notes Receivable
...........................................................................................280,000
........................................................................................................
Other
Financing Sources...........................................................................
250,000
........................................................................................................
Revenues
........................................................................................................
130,000
............................................................................
To record sale
of land. Only the $130,000 gain is
new revenue. (Requires entry in general fixed
assets account group.)
...................................................................................................(m)
.............................................................................................23,000
........................................................................................................
Financing Sources...........................................................................
............................................................................
cash received from other funds.
(Requires entries in other funds.)
Cash
....................................................................................................(n)
...........................................................................................285,600
........................................................................................................
Receivable......................................................................................
........................................................................................................
($280,000 8% 1/4 year) ............................................................
........................................................................................................
........................................To record cash received from developer.
Cash
Other
23,000
To record
Notes
280,000
Revenues
5,600
(2).............................................................................Appropriations
875,000
.....................................................Estimated Other Financing Uses
20,000
...........................................Budgetary Fund BalanceUnassigned
32,000
........................................................................................................
900,000
Sources...........................................................................................
27,000
........................................................................................................
To reverse
entry recording budget.
........................................................................................Revenues
1,139,100
.................................................................Other Financing Sources
273,000
........................................................................................................ Expenditures
........................................................................................................
1,007,000
........................................................................................................
20,000
........................................................................................................
385,100
Ch. 15Problems
........................................................................................................ Encumbrances
........................................................................................................
20,000
........................................................................................................
nominal accounts.
20,000
To close
Ch. 15Problems

(3)
City of Toma
General Fund
Budgetary Comparison Schedule
For Year Ended December 31, 2019
Budget
Revenues
900,000
239,100
Expenditures
875,000
(132,000)
Excess of revenues over expenditures
25,000
107,100
Other financing sources
273,000
Other financing uses
(20,000)
Excess of revenues and other sources over
expenditures and other uses
32,000
353,100
*Fund balances, January 1, 2019
(165,000)
*Fund balances, December 31, 2019
(133,000)
353,100
Actual
$1,139,100
Variance
Favorable
(Unfavorable)
$
$
1,007,000
$
$ 132,100
$
27,000
246,000
(20,000)
$
$ 385,100
(165,000)
$
$ 220,100
0
$
0
$
January 1 December
31
*The total of the fund balances consists of:
Fund balancenonspendable...................................................
2,000
Fund balanceassigned...........................................................
20,000
Fund balanceunassigned.......................................................
198,100
Total fund balances............................................................
PROBLEM 15-7
(1) Year 1:
15,000
(180,000)
$(165,000)
$220,100
Ch. 15Problems
..................................................................................General Fund Expenditures

......................................................................................12,000,000
........................................................................................................
........................................................................................................
To record the pension benefits
financed by current-year resources.
General
Long-Term
Debt Account
Group
Amount to Be Provided.................................
Unfunded Pension Obligation.................
To record the portion of the actuarial
required contribution not financed in
the current period.
Cash
12,000,000
10,000,000
10,000,000
Ch. 15Problems

(2) Year 2:
General Fund
General
Long-Term
Debt Account
Group
Expenditures................................................
Cash.......................................................
To record the pension benefits paid
in year 2.
14,000,000
Unfunded Pension Obligation.......................

Amount to Be Provided...........................
To record the payment of
$2,000,000 over the actuarial
required contribution in year 2.
2,000,000
PROBLEM 15-8
(1)
Expenditures
(2)
Investment in General Fixed AssetsCapital Leases
(3)
Amount to Be Provided for Lease Payments

Capital Lease Payable
120,000
120,000
14,000,000
2,000,000
Ch. 15Problems
PROBLEM 15-9
Entry in General Fixed
Assets Account Group
Entry in General Fund

(a) Expenditures
80,000
Voucher Payable
General Fixed
To record voucher.
General Fund
80,000
..................Machinery and Equipment

80,000.................................................Investment in
............................................................ Assets
............................................................Revenues
80,000
............................................................
To
record purchase.
Fund Balances Assigned or Committed
Encumbrances
Encumbrances
To reverse encumbrance.
(b) Cash
Other Financing Sources....
15,000
To record proceeds
and Equipment
from equipment sale.
remove equipment sold.
75,000
75,000
6,000
6,000

....................General Fund Revenues
............................................................Machinery
15,000
............................................................
To
(c) No entry.
Land.................................................... 100,000
.............Investment in General Fixed
............................................................ Assets
...............................................100,000
............................................................
To
Donations
record donated land.
Construction in Progress.................... 300,000

............................................................ Assets
............................................................ 300,000
.To record partially finished
donated building.
Donations
(d) Expenditures
Cash
Revenue Funds
To record payment for
and Equipment
snow plow.
remove traded snow plow.
92,000

92,000................................................. Special
66,000
............................................................Machinery
66,000
............................................................
To
Ch. 15Problems
Machinery and Equipment.................. 110,000

............................................................ Assets
General Fund
............................................................Revenues
...............................................110,000
. .To record new snow plow
acquired.
Ch. 15Problems
PROBLEM 15-10
Transaction
Fund or
Group
Entry
(a)
GLTDAG......................Amount to Be Provided for Payment

.......................................................................................of Term Bonds
2,700,000
.......................................................................................
Term Bonds
Payable
....................................................................................... 2,700,000
(b)
General..............................................Other Financing Uses

Fund...................................................................................
200,000
200,000
Cash
GLTDAG............Amount Available in Debt Service Funds

....................................................................................... Term Bonds
200,000
.......................................................................................
Provided for Payment
.......................................................
Bonds
..........................................200,000
(c)
General..............................................Other Financing Uses

Fund...................................................................................
135,000
Amount to Be
of Term
135,000
Cash
GLTDAG............Amount Available in Debt Service Funds

....................................................................................... Serial Bonds
135,000
.......................................................................................
Provided for Payment
.......................................................
Bonds
..........................................135,000
(d)
General............................................................Expenditures
Fund...................................................................................
22,000
Amount to Be
of Serial
22,000
Cash
GFAAG...............................................................Equipment
25,000
.......................................................................................Investment in General
Fixed Assets
.......................................................................................
General Fund
Revenues .......................................................................................
25,000
...........................Investment in General Fixed Assets
.......................................................................................General Fund Revenues
15,000
.......................................................................................
............................................................................15,000
Equipment
Ch. 15Problems
(e)
GLTDAG.............................................Serial Bonds Payable

135,000
.......................................................................................Amount Available in Debt
Service Funds
.......................................................................................
Serial Bonds
..........................................................................135,000
(f)
GFAAG..........................................Construction in Progress
450,000
.......................................................................................Investment in General
Fixed Assets
.......................................................................................
Capital
Projects Fund.....................................................................................
450,000
Ch. 15Problems
PROBLEM 15-11
(1)
(a)
Buildings
850,000
Construction in Progress
250,000
Capital
Projects Funds
600,000
To record completion of new school.
(b)
Land
140,000
Investment in General Fixed AssetsDonations

140,000
To record
donation of land.
(c)
Proprietary funds maintain their own record of fixed assets as will be illustrated in
the next chapter. These business-type activities will not be recorded in the general fixed
assets account group, but will be shown on the capital assets schedule.
and Equipment
(d) Machinery
120,000
General Fund
Revenues
120,000
To record purchase of new engine.
Investment in
General Fixed AssetsGeneral
Fund Revenues
65,000
Machinery
and Equipment
65,000
To record trade-in of old engine.
Ch. 15Problems
(e)
Buildings
40,000

General Fund
Revenues
40,000
To record capital improvements on city hall.
Assets
(f)Infrastructure
20,000
Special
Revenue Funds
20,000
To record improvements other than buildings.
General Fixed Assets
(g)Investment in
175,000
Accumulated DepreciationBuildings
100,000
Accumulated DepreciationMachinery and Equipment
50,000
Accumulated DepreciationInfrastructure
25,000
Ch. 15Problems

(2)
City of Elmcreek
Schedule of Capital Assets
December 31, 2019
Balance
Governmental activities:
Land..................................................
$1,140,000
Buildings...........................................
3,040,000
Construction in progress...................
Machinery and equipment.................
855,000
Infrastructure assets.........................
1,420,000
Total general fixed assets...........
$6,455,000
Less accumulated depreciation:
Buildings...........................................
500,000
Machinery and equipment.................
350,000
Infrastructure.....................................
525,000
Total depreciation........................
$1,375,000
Governmental capital assets...................
$5,080,000
Beg. Balance
Additions
$1,000,000
$ 140,000
2,150,000
890,000
Retirements
End.
$ 250,000
65,000
250,000
800,000
120,000
1,400,000
20,000
$5,600,000
$1,170,000
$ 400,000
$ 100,000
300,000
50,000
500,000
25,000
$1,200,000
$ 175,000
$4,400,000
$ 995,000
$ 315,000
$ 315,000
$
PROBLEM 15-12
(1) (a) 2014
July 1 Amount to Be Provided for Payment of Term Bonds............ 1,500,000
Term Bonds Payable................................................
.................................................................1,500,000
To record issuance of term bonds for school project.
(b) 2016
Jan. 1 Amount to Be Provided for Payment of Serial Bonds........... 1,000,000
Serial Bonds Payable...............................................
.................................................................1,000,000
...To record issuance of serial bonds to finance city
hall and center.
2 Amount Available in Debt Service FundsSerial Bonds.....
Amount to Be Provided for Payment of Serial Bonds
......................................................................70,000
70,000
Ch. 15Problems
. To record January 2, 2016, deposit in debt service

fund. The same entry would be repeated at the
beginning of each year until maturity.
Ch. 15Problems

Dec. 31 Amount Available in Debt Service FundsSerial Bonds.....
Amount to Be Provided for Payment of Serial Bonds
........................................................................5,600
.................To record 2016 earnings of sinking fund
($70,000 8%). This same entry would be
repeated at the end of each year, using the
following annual earnings:
Serial
Redemption
Year January 1
2016
75,600
2017
157,248
2018
2019 $100,000
Annual
Deposit
January 2
70,000
70,000
Cumulative
Balance
January 2
$70,000$
5,600
Annual
Amount Available
Earnings
for Serial Bond
at 8%
Redemption December 31
70,000
$ 5,600$
70,000
145,600
11,648
227,248
215,428
18,180
17,234
245,428
232,662
2019
Jan. 1 Serial Bonds Payable
Amount Available in Debt Service Funds
100,000
Serial Bonds
100,000
...................To record retirement of serial bonds

maturing January 1, 2019.
(c) No entry in general long-term debt account group, because proprietary funds maintain
their own records of long-term debt.
(d) 2017
Jan. 1 Amount to Be Provided for Payment of Term Bonds
Term Bonds Payable
400,000
400,000
To record issuance of term bonds.
Note: The following entry would be made annually to record the contribution to the sinking
fund:
Amount Available in Debt Service FundsTerm Bonds
Amount to Be Provided for Payment of Term Bonds
40,000
40,000
Note: The general long-term debt account group would not record the earnings of the
sinking fund because they are to be applied to the semiannual interest payments.
Ch. 15Problems

(2)
City of Clinton
Schedule of General Long-Term Liabilities
December 31, 2019
General Long-Term Liabilities
Term bonds payable...........................

$1,900,000
Serial bonds payable..........................
900,000
Total general long-term liabilities
payable.........................................
$2,800,000
Beginning
Balance
$1,900,000
Additions
$
0
1,000,000
$100,000
$100,000
$2,900,000
Deductions
Ending
Balance
PROBLEM 15-13
(1) Purchase MethodThe purchase method is the preferred accounting treatment. When the
purchase method is used, a portion of the fund balance is reserved for the amount in
inventory at year-end. This reflects the expected expenditure in future periods as inventory
is consumed or expended.
(2) $811,000 = $825,000 less $14,000 net balance in receivables.
(3) $89,000Vouchers payable is the amount due suppliers.
(4) $100,000The capital outlay expenditures amount is capitalized in the general fixed
assets account group.
(5) $52,000The debt service principal is calculated as $74,000 debt service expenditures
less $22,000 interest amount.
(6) $1,392,000 = $1,349,000 expenditures for 2019 + $43,000 open encumbrances.
Ch. 15Problems
PROBLEM 15-14
(1)
Oneida Township
General Fund Worksheet
For Six Months Ended June 30, 2018
Trial Balance
Dr.
Cr.
Cr.
Cash.......................................................................................................................
.................................................................................................................. 204,000
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
Taxes ReceivableDelinquent..............................................................................
...............................................................................................................................
...............................................................................................................................
Allowance for Uncollectible Delinquent Taxes...................................
..................................................................................................2,000
............................................................................................................
Tax Liens Receivable.............................................................................................
........................................................................................................................... (d)
...............................................................................................................................
Allowance for Uncollectible Tax Liens................................................
..................................................................................................1,000
............................................................................................................
Due from Parks Fund.............................................................................................
............................................................................................................................ (f)
...............................................................................................................................
Inventory of Supplies..............................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
Vouchers Payable..............................................................................
............................................................................................................
............................................................................................................
................................................................................................78,000
Due to Utility Fund..............................................................................
..................................................................................................4,000
............................................................................................................
Operating Entries
Dr.
Cr.
45,000
Revenues and
Expenditures
Dr.
Cr.
Balance Sheet
Dr.
..........................................................(b)........120,000....(h)
.............................................................................................
....................(d)...........................4,000..............................
............................................................................................
.....................(f).......................344,000..............................
...............................................................................309,000
20,000.................
20,000.................
..............4,000
..............4,000
.......................
12,000.................
............11,000
1,000..................
26,000
151,000
.........................................................................................(f)
.............................................................................................
...................................2,000..............(f).....................
............................................................................................
.........................
.............................................................................................
.............................................................................................
...................................1,000.............(d).....................
............................................................................................
.........................
.............................................................................................
.............................................................................................
5,000....................................................................................(g)
(i).................................................10,000..............................
...................................................21,000..............................
...................................................43,000.................(h)
(g)..............................................186,000.....................
....................................................................................
...................................4,000.............(h).....................
............................................................................................
.........................
Ch. 15Problems
Fund BalanceNonspendable..........................................................
............................................................................................................
............................................................................................................
Fund BalanceUnassigned...............................................................
............................................................................................................
............................................................................................................
Tax Anticipation Notes Payable............................................................................
.......................................................................................................(b)...................
...............................................................................................................................
Estimated Revenues.............................................................................................
...............................................................................................................................
..............................................................................................655,000...................
Estimated Other Financing Uses...........................................................................
.......................................................................................................(a)...................
...............................................................................................................................
Appropriations.......................................................................................................
.......................................................................................................(a)...................
...............................................................................................................................
Budgetary Fund BalanceUnassigned................................................................
.......................................................................................................(a)...................
...............................................................................................................................
Taxes ReceivableCurrent..................................................................................
..............................................................................................430,000................(f)
...............................................................................................................................
Allowance for Uncollectible Current Taxes............................................................
.......................................................................................................(c)...................
...............................................................................................................................
Revenues..............................................................................................................
..................................................................................................................421,400
............................................................................................................
...............................................................................................................................
..................................................................................................1,000...................
...............................................................................................................................
..................................................................................................2,000...................
...............................................................................................................................
................................................................................................23,000...................
Expenditures.........................................................................................................
...............................................................................................................................
............................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
............................................................................................................
.......................
...................................5,000.......................................
(i).....................16,000..............................................................................
.......................
.................................21,000
..............31,000................(i)............................16,000
...................................................................................
..............15,000
86,000......86,000 ............................................................................................
.......................
............................................................................................
.......................
....................................................................................
120,000................
....................................................................................
120,000
........................................(a)...................................655,000
............................................................................................
.......................
27,000.................
27,000
.......................
620,000................
620,000
.......................
8,000..................
8,000
....................................................................................
....................................................................................
....................................................................................
....................................................................................
....................................................................................
....................................................................................
..........................................................(c)..............................
290,000......................................................................................
140,000
.............................................
.......................
....................................................................................
8,600..................
....................................................................................
8,600
.......................
........................................................................................(c)
.......................
.............................................................................................
.......................
.......................
.......................
.......................
.......................
..........447,400
219,000
................................................................................(d).........
.............................................................................................
.................................................................................(f).........
.............................................................................................
.................................................................................(f).........
....................................................................................
.........................................(i)............................10,000.........
............................................................................................
....................(g).......................160,000..............................
............................................................................................
....................(h)...............................................49,000.........
............................................................................................
Ch. 15Problems
Encumbrances......................................................................................................
..........................................................(e)..............................
..............................................................................................250,000...............(g)
183,000......................................................................................
............................................................................................................................... 67,000
.............................................
Fund BalanceAssigned or Committed...............................................................
..........................................................(g).....................
..............................................................................................183,000...............(e)
250,000.............................................................................
...............................................................................................................................
.................................67,000
Excess of Revenues over Expenditures........................................................................................................................................................................................
............................................................................................................ ..............................................................................................................................228,400
............................................................................................................ ...................................................................................................................... ........228,400
...............................................................................................................................
2,405,000
2,405,000
447,400
..............................................................................................447,400. . .1,193,000 1,193,000
Ch. 15Problems

(2)
Oneida Township
General Fund Balance Sheet
June 30, 2018
Assets and Resources
Current Assets:
Cash....................................................................................
Taxes receivablecurrent...................................................
....................Less: Allowance for uncollectible current taxes
131,400
Due from Parks Fund...........................................................
1,000
Inventory and supplies.........................................................
21,000
.............................................................Total current assets
..............................................................................$462,400
Liabilities and Fund Equity
Liabilities:
Tax anticipation notes payable............................................
Vouchers payable................................................................
......................................................................Total liabilities
............................................................................................
Fund Balances:
Nonspendable......................................................................
Assigned..............................................................................
Unassigned..........................................................................
...............................................................Total fund balance
............................................................................................
.............................................Total liabilities and fund equity
............................................................................................
$309,000
$140,000
8,600
$120,000
78,000
$198,000
$ 21,000
67,000
176,400
264,400
$462,400

GASB 34 Reporting Model Explained

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

GASB 34 Reporting Model Explained

Uploaded by

Copyright:

Available Formats

CHAPTER 15

UNDERSTANDING THE ISSUES

best serves the budget-planning process

2. Separating activity into governmental,

5. The encumbrance system is designed

7. (Appendix) The 13 basic principles of

Representing potential inflow of assets, Estimated Revenues is debited.

a Grants without restriction are recorded as revenue when received.

e These pension expenditures will be recorded in the internal service fund.

b This is an expenditure by the general fund.

c This is recorded as a transfer to the swimming pool fund.

e A loan only affects the balance sheet accounts.

Allowance for Uncollectible Tax Liens

Tax Liens Receivable

Allowance for Uncollectible Delinquent Taxes

Property Taxes Receivable

Exercise 15-4, Concluded

Tax Anticipation Notes Payable

(4).............................Expenditures ($25,000 + $82,000 $30,000)

Exercise 15-9, Concluded

(n)......................................Budgetary Fund BalanceUnassigned

Fund balances, July 1, 2018

Exercise 15-10, Concluded

Liabilities and Fund Equity

Liabilities: Vouchers payable...........

Fund BalanceAssigned or Committed

Investment in General Fixed Assets

in General Fixed AssetsGeneral Funds

in General Fixed AssetsDonations

in General Fixed AssetsCapital Projects Funds

Machinery and Equipment

in General Fixed AssetsGeneral Fund

in General Fixed AssetsCapital Projects Funds

in General Fixed AssetsGeneral Fund Revenues

Amount to Be Provided for Compensated Absences

Unfunded Compensated Absences

Be Provided for Compensated Absences

Amount to Be Provided for Claims and Judgments

Exercise 15-13, Concluded

....................Amount Available in Debt Service FundsSerial Bonds

b A hypothetical entry to record the tax levy is:

Allowance for Uncollectible Current Taxes

Problem 15-2, Concluded

Leased Equipment ....................................... 800,000

Amount to Be Provided................................. 800,000

(2) First interest payment:

Expenditures (interest) ($800,000 6%)......

Problem 15-3, Concluded

Capital Lease Obligation...............................

(b) Fund Balance

Uncollectible Delinquent Taxes

Problem 15-4, Concluded

Statement of Revenues, Expenditures, and Changes in Fund Balance:

Allowance for Uncollectible Current Taxes

Problem 15-5, Concluded

........................................................................................................ Taxes Receivable

Problem 15-6, Continued

........................................................................................................ Fund BalanceUnassigned

Problem 15-6, Continued

Problem 15-6, Concluded

..................................................................................General Fund Expenditures

Problem 15-7, Concluded