Chapter 4 accounting for governmental operating activities solutions. Chapter 4: Accounting for Governmental Operating Activities 2022-10-19

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Chapter 4 of an accounting textbook typically covers the topic of accounting for governmental operating activities. In this chapter, students learn about the unique accounting principles and practices that are used to record and report the financial transactions of governmental entities such as cities, states, and federal agencies.

One of the key concepts covered in this chapter is the accrual basis of accounting, which is the standard method of recording financial transactions in the government sector. Under the accrual basis, transactions are recorded when they occur, rather than when payment is received or made. This means that revenues are recorded when they are earned, regardless of when the payment is received, and expenses are recorded when they are incurred, regardless of when the payment is made.

Another important concept covered in this chapter is the fund accounting system, which is used by governmental entities to track and report on the financial activities of specific programs or activities. For example, a city might have a separate fund for its parks and recreation program, and all of the revenues and expenses related to that program would be recorded in the parks and recreation fund. This system helps ensure that the financial resources of a government are used for their intended purposes and allows for more detailed reporting on the performance of specific programs.

In addition to these foundational concepts, students will also learn about the various types of governmental funds, including general funds, special revenue funds, capital projects funds, and debt service funds. They will also learn about the budgeting process and how to prepare and interpret financial statements for governmental entities, including the government-wide statement of net position and the government-wide statement of activities.

Solutions to the exercises and problems found in chapter 4 of an accounting textbook might include examples of how to record transactions using the accrual basis of accounting, how to set up and maintain a fund accounting system, and how to prepare and interpret financial statements for governmental entities. These solutions might also include practice problems for students to work through on their own, as well as explanations and step-by-step guides for solving more complex problems.

Overall, chapter 4 of an accounting textbook provides a comprehensive overview of the principles and practices of accounting for governmental operating activities. By understanding these concepts, students will be well-prepared to work in the government sector or in any other field where a knowledge of public sector accounting is required.

Chapter 04 Accounting for Governmental Operating Activities Ch 4 Solutions 4 17b

chapter 4 accounting for governmental operating activities solutions

A debit to Interfund Transfers Out. Examples of transactions that are recorded only in the governmental activities general journal include depreciation expense on general capital assets and accrual of interest on long-term debt as discussed in Chapter 6. General Fund: Encumbrances Outstanding—2013 Expenditures—2013 Encumbrances—2013 Cash Dr. As note disclosure in the basic financial statements. Bad debt expense is recognized at the government-wide level. Availability to finance current expenditures is not a revenue recognition criterion under the accrual basis used at the government-wide level. The receivable from the Water Utility Fund cannot be netted against the payable to that fund; both amounts must be reported.

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Chapter 4: Accounting for Governmental Operating Activities

chapter 4 accounting for governmental operating activities solutions

Any amounts that will not be collected within that time frame should be reclassified from Revenues to Deferred Inflow of Resources—Property Taxes in the General Fund. These transactions are reported as Transfers on the government-wide statement of net position. Examples of transactions or events that are recorded only in the General Fund general journal include budgetary entries and encumbrance transactions. These transactions are reported as Transfers in the government-wide statement of activities. What amount of property tax revenues should the city report in the government-wide financial statements for the current fiscal year? Revenues by the permanent fund. Ledger Revenues Accrued Receivable Revenues Revenues Sub. Revenues and expenditures and other financing sources and uses, recognized on the modified accrual basis, are reported on the statement of revenues, expenditures, and changes in fund balances.

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Chapter 4 Accounting for Governmental Operating Activities. Student Learning Outcomes. Student Learning Outcomes

chapter 4 accounting for governmental operating activities solutions

Amount of expenditures for goods ordered in 2013 that were received in 2014 and chargeable to appropriations of 2013. Recording the property tax levy, payroll, and encumbrances for purchase orders. Excess expenditures in 2013 that will be offset against appropriations for 2014. The General Fund journal entry to record the payroll includes a credit for which of the following? Student Learning Outcomes Explain and make entries for internal exchange transactions 2 4 Student Learning Outcomes Account for operating grants and other financial assistance using special revenue funds Account for interfund transactions; distinguish between intra- and inter-activity transactions; and explain accounting for intra-entity transactions Account for transactions of a permanent fund Explain the difference between exchange and nonexchange transactions, and the classifications of nonexchange transactions. Property tax revenues are not recorded in the government-wide statements.

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Chapter 4 Accounting for Governmental Operating Activities Flashcards

chapter 4 accounting for governmental operating activities solutions

The entry in the special revenue fund is: Special Revenue Fund: Cash Deferred Revenue Dr. If a grant imposes a time requirement, which specifies that the amount is intended for a future accounting period, resources received before time requirements are met, but after all other eligibility requirements have been met, should be reported as which of the following? What amount of property tax revenues should the city report in the government-wide financial statements for the current fiscal year? Bad debt expense is recognized at the government-wide level. How would the earnings be recorded? An interfund loan from the General Fund to an internal service fund. The General Fund general journal entry to record the transaction will include A debit to Due to Other Funds. The related trusts are established to benefit a government program or function, or the citizenry. Tax Anticipation Notes Payable 300,000 Cash 300,000 Governmental Activities: Same Entry 10 28 Balance sheet equation at an interim point during the year e.


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Chapter 4 Homework Solutions

chapter 4 accounting for governmental operating activities solutions

The General Fund used electricity provided by the city-owned electric utility an enterprise fund of the city. Transactions of the fund result in changes in the fund principal only incidentally. Program Revenue-Culture and Recreation-Operating Grants and Contributions. On November 1, 2023, the City of Oceanside established the Library Endowment Fund a permanent fund and accepted a gift of bonds that pay 12% interest semiannually and mature on December 31, 2033. If there is a difference between the amount encumbered in 2019 and the actual cost, the related General Fund entries should debit the: Multiple select question. Fees charged for use of an athletic field at a city park. Interfund Loans Receivable -- Current C.

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Chapter 4: Accounting for Governmental Operating Activities Flashcards

chapter 4 accounting for governmental operating activities solutions

A credit to Property Taxes D. Revenues are less than expenditures. What General Fund journal entry should Athens make on May 6, to record the approved purchase order? Debit Budgetary Fund Balance and credit Estimated Revenues B. An interfund transfer is made between the General Fund and the Debt Service Fund. The Capital Projects Fund completes a library building project and transfers the remaining cash to the Debt Service Fund. It is one component of Fund Equity at an interim point during the year. For purposes of income distribution, interest earned is to be transferred to the city's Library Operating Fund, a special revenue fund.

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Chap004

chapter 4 accounting for governmental operating activities solutions

To be recognized as revenue in the General Fund, the taxes should be collected during the current fiscal year or within 60 days of the fiscal year end. Debit Estimated Revenues and credit Budgetary Fund Balance C. Since cash inflows to governments often do not occur on a consistent basis, many governments borrow money on a short-term basis. Allowance for Uncollectible Current Taxes D. How would this affect the journal entries? The compound entry made to the General Fund and Governmental Activities journals to reclassify the balance of current taxes receivable at year-end includes credits to which of the following accounts? Capital projects fund and governmental activities. Neither governmental activities nor business-type activities is affected at the government-wide level. If cash is received before eligibility requirements have been met, Deferred Revenues would be credited.

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Chapter 4

chapter 4 accounting for governmental operating activities solutions

Revenues are more than expenditures. Which of the following would be considered an internal exchange transaction? A credit to Other Financing Sources and Proceeds of Tax Anticipation Notes. A debit to Internal Balances. Revenues and expenses, recognized on the accrual basis, are reported on the statement of activities. Chapter 04 - Accounting for Governmental Operating Activities Ch.


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Accounting For Governmental Operating Activities [1430dmzvw24j]

chapter 4 accounting for governmental operating activities solutions

A credit to Other Financing Sources and Proceeds of Tax Anticipation Notes. Balance Sheet and Income Statement. An enterprise fund that transfers a portion of fees charged to customers to the General Fund. The General Fund balance sheet reports both current and noncurrent assets and liabilities. Debit Estimated Revenues, Debit Budgetary Fund Balance, and credit Appropriations C. Intra-Entity Transactions 42 To account for contributions received under trust agreements in which the principal amount is not expendable, but the earnings are Specifically intended to meet a public-purpose i. Which of the following transactions is reported on the government-wide financial statements? The General Fund balance sheet reports only current financial resources and current liabilities to be paid from current financial resources.

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