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ACCT 621 Chap 5 Instructor's Notes Without Homework (12th Edition)
ACCT 621 Chap 5 Instructor's Notes Without Homework (12th Edition)
THE SOLUTION TO THIS AND THE FIRST EXERCISE OF CHAPTERS 1 THROUGH 8 WILL
DIFFER FROM STUDENT TO STUDENT, ASSUMING EACH HAS A DIFFERENT CAFR.
5.2.
5-3.
AT THE INCEPTION OF THE LEASE, THE PRESENT VALUE OF THE MINIMUM LEASE
PAYMENTS SHOULD BE REPORTED AS A CAPITAL EXPENDITURE AND AN OTHER FINANCING
SOURCE WITHIN AN APPROPRIATE GOVERNMENTAL TYPE FUND (TYPICALLY THE
GENERAL FUND OR A CAPITAL PROJECTS FUND). RENTAL PAYMENTS WOULD TYPICALLY
BE REPORTED AS INTEREST AND PRINCIPAL EXPENDITURES IN THE GENERAL FUND OR A
DEBT SERVICE FUND.
AT FISCAL YEAR END, THE LEASED ASSET SHOULD BE REFLECTED IN THE GOVERNMENTWIDE STATEMENT OF NET POSITION AS A CAPITAL ASSET AT NET BOOK VALUE (I.E. THE
PRESENT VALUE OF THE MINIMUM LEASE PAYMENTS AT THE INCEPTION OF THE LEASE
LESS ACCUMULATED DEPRECIATION). SIMILARLY, THE UNPAID BALANCE OF THE LEASE
OBLIGATION SHOULD BE REPORTED IN THE GOVERNMENT-WIDE STATEMENT OF NET
POSITION AS A LIABILITY.
5-18
5-4 (A)
SPENCER COUNTY
COURTHOUSE ANNEX CAPITAL PROJECTS FUND
GENERAL JOURNAL
CLOSING ENTRY
OTHER FINANCING SOURCES-PROCEEDS OF BONDS
OTHER FINANCING SOURCES-PREMIUM ON BONDS
INTERGOVERNMENTAL REVENUE
CAPITAL EXPENDITURES
OTHER FINANCING USES-TRANSFERS OUT
FUND BALANCE
DEBITS
2,000,000
45,000
400,000
85,000
CREDITS
1,850,000
45,000
550,000
85,000
5-4 (B)
SPENCER COUNTY
COURTHOUSE ANNEX CAPITAL PROJECTS FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 2015
REVENUES:
INTERGOVERNMENTAL GRANT
$ 400,000
EXPENDITURES:
CAPITAL OUTLAY
1,850,000
(1,450,000)
2,000,000
45,000
(45,000)
2,000,000
550,000
--0--
$ 550,000
5-19
5-4 (C)
CASH
SPENCER COUNTY
COURTHOUSE ANNEX CAPITAL PROJECTS FUND
BALANCE SHEET
AS OF DECEMBER 31, 2015
$ 900,000
200,000
TOTAL ASSETS
$1,100,000
LIABILITIES:
CONTRACT PAYABLE
$ 550,000
FUND BALANCE:
RESTRICTED FOR COURTHOUSE ANNEX
TOTAL LIABILITIES AND FUND BALANCE
550,000
$1,100,000
5-6 (A).
ARMSTRONG COUNTY
COUNTY OFFICE BUILDING CONSTRUCTION FUND
CAPITAL PROJECTS FUND GENERAL JOURNAL
1.
2.
3.
4.
5.
DEBITS
8,500,000
CASH
OTHER FINANCING SOURCESPROCEEDS OF BONDS
ENCUMBRANCES CONTROL
CREDITS
8,500,000
ENCUMBRANCES CONTROL
CONSTRUCTION EXPENDITURES
CONTRACTS PAYABLE
CONTRACTS PAYABLE
CONTRACTS PAYABLE-RETAINED PERCENTAGE
CASH
BUDGETARY FUND BALANCE - RESERVE FOR ENCUMBRANCES
ENCUMBRANCES CONTROL
CONSTRUCTION EXPENDITURES
CONTRACTS PAYABLE
CONTRACTS PAYABLE
CONTRACTS PAYABLE-RETAINED PERCENTAGE
CASH
CONTRACTS PAYABLE-RETAINED PERCENTAGE
5-20
8,400,000
8,400,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
300,000
5,700,000
2,400,000
2,400,000
2,400,000
2,400,000
2,400,000
120,000
2,280,000
420,000
CONSTRUCTION EXPENDITURES
ACCOUNTS PAYABLE
6A.. ACCOUNTS PAYABLE
CASH
6B. OTHER FINANCING USES-TRANSFERS OUT
CASH
7. OTHER FINANCING SOURCES-PROCEEDS OF BONDS
CONSTRUCTION EXPENDITURES
OTHER FINANCING USES-TRANSFERS OUT
5-21
97,000
517,000
517,000
517,000
3,000
3,000
8,500,000
8,497,000
3,000
5-6 (B).
ARMSTRONG COUNTY
COUNTY OFFICE BUILDING CONSTRUCTION FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 2015
REVENUES:
$ --0--
EXPENDITURES:
CAPITAL OUTLAY
8,497,000
(8,497,000)
8,500,000
TRANSFERS OUT
(3,000)
8,497,000
--0--
--0--
--0--
5-9 (A)
VILLAGE OF BUDEKVILLE
GENERAL JOURNAL
CAPITAL PROJECTS FUND
1.
CASH
OTHER FINANCING SOURCES-PROCEEDS OF BONDS
2.
3.
CONSTRUCTION EXPENDITURES
CASH
4.
DEBITS
3,000,000
CREDITS
3,000,000
2,997,000
2,997,000
5-22
3,000
3,000
3,000,000
2,997,000
3,000
5-9 (B)
VILLAGE OF BUDEKVILLE
GENERAL JOURNAL
DEBT SERVICE FUND
DEBITS
1.
2.
CASH
OTHER FINANCING SOURCES-TRANSFERS IN
($ 3,000,000 * 4% *6/12)
60,000
EXPENDITURES-INTEREST
CASH
60,000
CREDITS
60,000
60,000
3.
4.
CASH
OTHER FINANCING SOURCES-TRANSFERS IN
5-23
3,000
3,000
63,000
60,000
3,000
5-9 (C)
VILLAGE OF BUDEKVILLE
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2015
GENERAL
REVENUES:
PROPERTY TAXES
OTHER
TOTAL REVENUES
REVENUES
TOTAL
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT
PUBLIC SAFETY
CAPITAL OUTLAY
DEBT SERVICE:
PRINCIPAL
INTEREST
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF
REVENUES OVER
EXPENDITURES
OTHER FINANCING
SOURCES(USES):
PROCEEDS OF BONDS
TRANSFERS IN
TRANSFERS OUT
TOTAL OTHER FINANCING
SOURCES(USES)
TOTAL
REVENUES
NET CHANGE IN FUND
BALANCES
FUND BALANCESBEGINNING
FUND BALANCES-ENDING
POLICE
STATION
CONSTRUCTION
DEBT
SERVICE
FUND
TOTAL
GOVERNMENTAL
FUNDS
$ 512,000
200,000
712,000
$ 512,000
200,000
712,000
149,000
450,000
149,000
450,000
2,997,000
2,997,000
________
599,000
________
2,997,000
0
60,000
60,000
113,000
(2,997,000)
(60,000)
( 2,944,000)
3,000,000
0
60,000
3,656,000
( 125,000)
(3,000)
63,000
________
3,000,000
63,000
( 128,000)
(125,000)
2,997,000
63,000
2, 935,000
(12,000)
3,000
(9,000)
175,000
175,000
$163,000
$0
$ 3,000
$ 166,000
5-24
5-10(A)
CITY OF GENOA
GENERAL JOURNAL
DEBITS
CREDITS
$68,190
$53,190
15,000
(FUNDS PROVIDED FOR FUTURE LEASE AGREEMENTS =PRESENT VALUE OF FOUR $15,000 PAYMENTS,
DISCOUNTED AT 5 PERCENT = $53,190)
DEBT SERVICE FUND JULY 1, 2015
EXPENDITURES-INTEREST
EXPENDITURES-PRINCIPAL
CASH
2,660
12,340
15,000
5-11.
TOWN OF MCHENRY
DEBT SERVICE FUND
GENERAL JOURNAL
DEBITS
8,000,000
CASH
OTHER FINANCING SOURCES-REFUNDING BONDS ISSUED
OTHER FINANCING USES-REFUNDING OF EXISTING DEBT
CASH
5-25
CREDITS
8,000,000
8,000,000
8,000,000
5-13 (A) SOLUTIONS TO THE EXCEL BASED EXERCISES ARE ALSO AVAILABLE IN EXCEL ON THE
INSTRUCTORS WEBSITE
Jefferson County
Capital Project Fund Journal Entries
December 31, 2015
Account Title
Cash
Other financing sources - proceeds of bonds
Other financing sources - premium on bonds
Other financing uses - transfers out
Cash
700,000
22,800
22,800
280,000
280,000
Encumbrances
1,000,000
Budgetary Fund Balance - Reserve for encumbrances
Capital expenditures
Contracts payable
1,000,000
612,000
612,000
612,000
612,000
Contracts payable
Cash
Credits
22,800
Debits
722,800
587,000
587,000
Jefferson County
Debt Service Fund Journal Entries
December 31, 2015
Account Title
Debits
Cash
22,800
Other financing sources - transfers in
Cash
Other financing sources - transfers in
43,000
22,000
21,000
Credits
22,800
43,000
43,000
5-26
Jefferson County
Permanent Fund (Elwood Family Book) Journal Entries
December 31, 2015
10
Account Title
Cash
Investments in corporate bonds
Receivable from grantor
Debits
130,000
370,000
130,000
500,000
Cash
Revenues - investment income - interest
130,000
17,000
17,000
11
12
Expenditures - Library
Accounts payable
13
14
Credits
12,700
12,700
Accounts payable
Cash
8,600
1,700
3,000
8,600
5-27
1,700
600
2,400
5-13 (C)
Jefferson County
Capital project Fund Closing Entries
December 31, 2015
Account Title
Debits
Intergovernmental revenue
OFS - proceeds of bonds
OFS - premium on bonds
Fund balance
Capital Expenditures
OFU - Transfers out
280,000
700,000
22,800
368,000
612,000
22,800
Account Title
388,000
388,000
Jefferson County
Debt service fund closing entries
December 31, 2015
Debits
OFS - transfers in
Expenditures - bond principal
Expenditures - bond interest
Fund balance
Account Title
Credits
Credits
65,800
22,000
21,000
22,800
Jefferson County
Permanent Fund Closing Entries
December 31, 2015
Debits
Credits
18,700
2,400
12,700
8,400
5-28
5-13 (D)
Capital Projects
Fund
Debt
Service
Fund
Permanent
Fund
Total
Governmental
Funds
Revenues
Property Taxes
Intergovernmental revenues
Investment income:
Interest income
Net increase in fair value of investments
Total Revenues
Expenditures
Current:
General Government Operations
Library
Capital Outlay
Debt Service
Principal
Interest
Total Expenditures
262,075
262,075
280,000
280,000
$
-
$
-
221,460
5-18
612,000
612,000
22,000
21,000
43,000
262,075
280,000
18,700
2,400
18,700
2,400
21,100
563,175
12,700
181,560
12,700
12,700
651,900
22,000
21,000
889,160
181,560
39,900
40,615
(43,00
0)
(332,000)
8,40
0
(325,985)
(38,500)
(22,800)
(38,500)
700,000
65,800
727,300
2,115
368,000
22,800
8,400
401,315
156,758
158,873
68,000
436,000
22,800
500,000
508,400
724,758
1,126,073
5-13 (E)
700,000
22,800
700,000
22,800
65,800
(61,300)
65,800
General Fund
Debt Service
Fund
Permanent
Fund
Total
Governmental
Funds
Assets
Cash
Investment in corporate bonds
Investment in US securities
Taxes Receivable - net
132,648
51,325
5-19
181,000
22,800
8,400
373,000
129,400
344,848
373,000
129,400
51,325
280,000
1,700
$
461,000
22,800
2,000
850
Fund Balances
Nonspendable
Inventories
Permanent Fund principal
Restricted for low income housing projects
Assigned
General Government operations
Debt Service
Library purchases
Unassigned
Total Fund Balances
512,500
4,100
25,000
25,000
2,850
350
184,323
6,100
850
25,000
31,950
4,100
22,600
22,600
350
350
500,000
436,000
800
22,800
8,400
157,723
1,126,073
500,000
436,000
800
22,800
8,400
157,723
158,873
$
280,000
1,700
350
1,180,623
184,323
5-20
436,000
$
461,000
22,800
$
22,800
508,400
$
512,500
1,180,623