Chapter 3pp - The General Fund and Special Revenue Funds...

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The General Fund and Special Revenue Funds Chapter 3
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Learning Objectives Analyze common journal entries for transactions, including interfund activity Define special items and extraordinary items Prepare GF and SRF financial statements
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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.
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Special Revenue Funds Used to account for and report specific revenue sources that are restricted or committed to expenditure for specified purpose or activity. Exist as long as the government has resources dedicated to specific purposes. Look at City of Arlington SRFs
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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) Look at Ch 2 handout
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Basic Accounting Equation Related Liabilities Fund Balance Financial Assets
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Illustrative Entries from textbook (ignore budget, follow GAAP) Property tax levy, collect and reclassify (#1, 17, 18 & 19) Orders and contracts (#3, placing an order) Orders and contracts (#4, receiving and paying) Salary expenditures(#5) Interfund activity (reimbursements) (#6) Interfund activity (charge for service) (#10) Interfund activity (loans, short-term, long-term) (#11 Extraordinary and special items (#15 & 16)
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#1 Property Tax Levy [Page 72] Levy property taxes of $200,000, $3,000 is expected to be uncollectible. Tax Revenue is recorded net of uncollectible. Taxes Receivable – Current Allowance for Uncollectible Current Taxes Revenues – Property Taxes 200,000 3,000 197,000
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Reclassify taxes as delinquent [Page 81] When taxes become delinquent, establish a Taxes Receivable-Delinquent by year and corresponding allowance account. #18 Receivable account Taxes Receivable – Delinquent (year) Taxes Receivable – Current #19 Allowance account Allowance for Uncollectible Taxes – Current Allowance for Uncollectible Taxes – Delinquent (year) 40,000 3,000 40,000 3,000
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Other Revenues Some revenues will be accrued when services are provided. Other revenues may be recognized only when cash
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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.

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Chapter 3pp - The General Fund and Special Revenue Funds...

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