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ch04web - CHAPTER 4: ACCOUNTING FOR GOVERNMENTAL OPERATING...

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CHAPTER 4: ACCOUNTING FOR GOVERNMENTAL OPERATING ACTIVITIES ILLUSTRATIVE TRANSACTIONS AND FINANCIAL STATEMENTS Answers to Questions 4-4. $6,790,000 = gross levy - (.03 * gross levy) $6,790,000 = (1 - .03) * gross levy $6,790,000 = .97 * gross levy gross levy = $6,790,000/.97 = $7,000,000 . Solutions to Exercises and Problems 4-2. 1. b . 6. d . 2. b . 7 . a . 3 . d. 8. b. 4. a . 9. c. 5. d. 10. b . 4-5. JANE CITY GENERAL JOURNAL Debits Credits APPROPRIATIONS 6,224,000 ESTIMATED OTHER FINANCING USES 2,776,000 ESTIMATED REVENUES 7,997,000 FUND BALANCE 1,003,000 REVENUES 8,022,000 FUND BALANCE 940,000 EXPENDITURES 6,192,000 OTHER FINANCING USES 2,770,000 (UNDER THE CONDITIONS STATED, THE $64,700 ITEM SHOULD NOT BE TREATED AS AN ENCUMBRANCE. IT WOULD NEED TO BE REAPPROPRIATED IN THE BUDGET FOR THE NEXT FISCAL YEAR.) 4-6. a . Debits Credits 1. General Fund : EXPENDITURES 70,000 CASH 70,000 Governmental Activities : EXPENSES—PUBLIC SAFETY 70,000 4-1
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CASH 70,000 Enterprise Fund : CASH 70,000 REVENUES 70,000 2. General Fund : INTERFUND LOANS RECEIVABLE— NONCURRENT 50,000 CASH 50,000 FUND BALANCE 50,000 RESERVE FOR INTERFUND LOANS RECEIVABLE—NONCURRENT 50,000 Debits Credits Governmental Activities : NO EFFECT Internal Service Fund: CASH 50,000 INTERFUND LOANS PAYABLE— NONCURRENT 50,000 3. General Fund: CASH 1,000 EXPENDITURES 1,000 Governmental Activities : CASH 1,000 EXPENSES—GENERAL GOVERNMENT 1,000 Enterprise Fund: SUPPLIES EXPENSE 1,000 CASH 1,000 4. General Fund : OTHER FINANCING USES—INTERFUND TRANSFERS OUT 80,000 DUE TO OTHER FUNDS 80,000 Governmental Activities : NO EFFECT Debt Service Fund : DUE FROM OTHER FUNDS 80,000 4-2
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OTHER FINANCING SOURCES— INTERFUND TRANSFERS IN 80,000 Debits Credits 5. General Fund : CASH 4,000 OTHER FINANCING SOURCES— INTERFUND TRANSFERS IN 4,000 Governmental Activities : NO EFFECT Capital Projects Fund: OTHER FINANCING USES— INTERFUND TRANSFERS OUT 4,000 CASH 4,000 b. Proprietary funds, such as the enterprise fund, measure total economic resources using the accrual basis of accounting. Since this is the same measurement focus and basis of accounting used at the government-wide level, there would be no difference between
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ch04web - CHAPTER 4: ACCOUNTING FOR GOVERNMENTAL OPERATING...

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