Exam 1 – Chapter 1 & 2 Solutions Acc 240 – Spring 2012

1. A2. C3. E4. E5. D6. B7. C

8. A9. D10. D11. C12. B13. B14. C

15. A16. C17. D18. A19. B

Problem 1 - Part IGovernmental Funds

Entry Fund FA – RL = FB

1. DSF ($2,100,000) ($2,100,000)

2. GF 300,000 300,000

3. GF or SRF (25,000) (25,000)

4. CPF (5,400,000) $600,000 (6,000,000)

5. GF or CPF 800,000 800,000

6. GF or CPF (824,000) (800,000) (24,000)

7. No Entry

8. GF (3,000,000) (3,000,000)

8. CPF 3,000,000 3,000,000

General Capital Assets and General Long-Term Liabilities Accounts

Entry GCA – GLTL = NA

1. (2,000,000) 2,000,000

2. (140,000) (140,000)

4. 6,000,000 6,000,000

7. (80,000) (80,000)

Part II

1. Debt Service FundStatement of revenues, expenditures, and changes in fund balance Expenditures of $2,100,000

2. General FundStatement of revenues, expenditures, and changes in fund balance Other financing sources—proceeds from sale of land of $300,000

3. General Fund..........................................................................Statement of revenues, expenditures, and changes in fund balance Expenditures of $25,000

4. Capital Projects FundStatement of revenues, expenditures, and changes in fund balance Expenditures (capital outlay) of $6,000,000

5. No effect on fund operating statement.

6. General Fund or Capital Projects FundStatement of revenues, expenditures, and changes in fund balance Expenditures (interest) of $24,000

7. No effect on fund operating statement.

8. General FundStatement of revenues, expenditures, and changes in fund balance Other financing uses—transfers out of $3,000,000

Capital Projects FundStatement of revenues, expenses, and changes in net assetsOther financing sources—transfers in of $3,000,000