Chapter 03D - The General Fund and Special Revenue Funds...

Info iconThis preview shows pages 1–18. Sign up to view the full content.

View Full Document Right Arrow Icon
The General Fund and Special Revenue Funds Chapter 3
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Learning Objectives Discuss similarities & differences between GF and SRFs Explain MFBA used for these funds Analyze common journal entries for transactions, including interfund activity Define special items and extraordinary items Prepare GF and SRF financial statements
Background image of page 2
General Fund Used to account for and report all financial resources not be accounted for and reported in another fund. Only fund that all general purpose governments have.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Special Revenue Funds Used to account for and report specific revenue sources that are restricted or committed to expenditure for specified. Exist as long as the government has resources dedicated to specific purposes.
Background image of page 4
MFBA Measurement Focus (MF) is on current financial resources – what is expendable Basis of Accounting (BA) is modified accrual – recognition occurs for Expenditures when underlying liability is incurred, except for long-term debt principal and interest payments (when due)
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Basic Accounting Equation Related Liabilities Fund Balance Financial Assets
Background image of page 6
Assumptions for this Chapter Transactions do not address budgetary Accounts maintained on GAAP basis during the year Second assumption rarely holds in practice, but makes instruction easier and more uniform
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Illustrative Entries Property tax levy Other revenues Orders and contracts Salary expenditures Interfund activity Short-term borrowing Extraordinary and special items Other transactions and events
Background image of page 8
#1 Property Tax Levy [Page 72] Taxes Receivable – Current Allowance for Uncollectible Current Taxes Revenues – Property Taxes 200,000 3,000 197,000
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Property Tax Levy Notice use of allowance account in entry No bad debts expense – remember, a governmental fund does not use expenses Records revenue at the amount government expects to collect This form of entry assumes net amount will be available – other options discussed in Chapter 5
Background image of page 10
Other Revenues Some revenues will be accrued when services are provided Other revenues may be recognized only when cash is received – no allowance necessary since all of revenue received
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
#2 Other Revenues [Page 73] Accounts Receivable Allowance for Uncollectible Accounts Receivable Revenues 36,000 1,000 35,000
Background image of page 12
#3 Orders and Contracts [Pages 74 – 75] In this transaction, materials and equipment were ordered No GAAP effect – therefore, no journal entry It would have a budgetary effect, but that is discussed in the next chapter
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
#4 Orders and Contracts [Page 74] Expenditures Vouchers Payable 29,900 29,900
Background image of page 14
Orders and Contracts Preceding slide showed the general journal entry However, the details are in the subsidiary ledger effects – not demonstrated in slide show Most accounts are for current operating expenditures Last account affects capital assets, resulting in accounting in GCA-GLTL accounts
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
GCA-GLTL Accounts GCA (Equipment) Net Assets GLTL +$6,100 +$6,100
Background image of page 16
#5 Salary Expenditures [Page 74] Expenditures Vouchers Payable 40,000 40,000
Background image of page 17

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 18
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/17/2011 for the course ACCT 4325 taught by Professor Staff during the Spring '08 term at UT Arlington.

Page1 / 74

Chapter 03D - The General Fund and Special Revenue Funds...

This preview shows document pages 1 - 18. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online