acct exam 2b

• general fund
• capital projects fund
• debt service fund
• special revenue funds
• permanent fund

modified accrual accounting with current financial resources measurement focus

To account for and report all financial reources not accounted for and reported in another funds

To account for and report the proceeds of specific revenues that are restricted or committed to expenditures for principal and interest (not for capital projects or long term debt)

• may be recorded as in traditional business world (as an asset reduced along with increase in expenditures as consumed)
• or
• use purchases method recording all purchases as expenditure and remaining supplies recorded as asset in adjusting entry at year end

Cash; taxes receivable; taxes receivable estm un-collectable; interest & penalty receivable; estm un-collectable interest & penalties; due from state govt; accounts payable; notes payable; due to state govt; due to fed govt; deferred revenue; due to other funds; estm revenue control; appropriations control; estm other financing uses control; revenues control; expenditures control; budgetary fund balance; budgetary fund balance - reserved for encumbrances; unreserved fund balance, transfers out control; encumbrances control; special items

recorded when liability incurred

• DR expenditure control
• CR accounts payable

record grants when received when unrestricted but only when used for that purpose when restricted

• DR Due from state govt
• CR Revenues control
• when have to use as purpose before receipt

• DR cash
• CR Revenue Control
• (when money has been received)

property tax revenue is recognized levied when due unless will be paid more than 60 days after end of year

• DR Taxes Receivable - Current
• CR Estm uncollectible Current taxes
• CR Revenue Control

• banks loan govt money for a short term loan when working capital needed
• DR cash
• CR Tax Anticipation Note Payable
• when borrowed
• DR Tax Anticipation Note Payable & Expenditure Control (for interest due)
• CR Cash
• to pay it back when taxes are received

assessed only on taxpayers that are deemed to benefit from a servie or project to be paid by the proceeds (police protection or garbage removal are examples) may be for construction type or service type

if there is a credit in a fund then it will deduct from the general fund a debit will add to the general fund

• is used to account for the financial resources that are to be used to aquire or construct major capital facilities from the period resources are first provided until project is complete for long term debt
• exists only for period of time project is being done

this fund accounts for the payment of interest and principle for long term debt that are not accounted for in proprietary or fiduciary funds

• dr cash and cr other financing sources - transfers in for bonds
• dr cash with fiscal agent cr cash and then dr expenditures - ____ cr maturied ___ payable when paying interest and principal on debt interest in the blanks for interest and bonds for the princincipal

permant funds are iused to earnins for purpose provided on funds in special revenue fund they are nonexpendable and used for investment of principal amounts so that interest help to pay the outlays in the sepcial revenue funds

• dr investment bonds and cr cash for the investment in bonds
• dr cash and cr revenues - investment income - interest for receipt of interest
• dr expenditures cr cash for use of interest

• as separate columns for major and one column for non major with a total column
• in the government wide financial statements is listed under governmental activities

• Internal service fund
• Enterprise funds

to provide services to individuals or business for a fee charged to equal or exceed cost of service/good

• to provide service/goods to the govt for a fee that is equal to or greater than cost of service/good
• expected to come out close to even extra funds in fund used to pay on interest
• to help govt to monitor and control cost of doing business as well as to bring several multiple departments under one roof to control those costs

accrual basis and economic resource focus of accounting just like for profit business

uses expenses and is basically similar transactions to a business

transactions are due to and due from general fund or proprietary fund

the idea is that revenues should be in excess of expenses and then will have a positive net asset but if expenses outweight the revenues then there will be a negative net assets

They are reported together under business type activities and then in a separate column under theie fund financial statements