133.The journal entry for the Debt Service fund upon the receipt of money from the General Fundwould be:
A) Debit to Cash and a credit to Transfers Payable.
B) Debit to Transfer In and credit to Cash.
C) Debit to Cash and credit to Transfer In.
D) Debit to Cash and credit to Transfer Out.
134.At the inception of a capital lease agreement for a piece of equipment used in governmental operations,
A) A liability is incurred and reported in the governmental fund’sbalance sheet.
B) A liability is incurred and reported in the government-wide financial statements.
C) An expenditure is recorded in the governmental fund.
D) Both B and C.
Use the following to answer the next six questions:
During the fiscal year ended December 31, 2015, the City of Johnstown issued 6% general obligation serial bonds in the amount of $2,000,000 at 102 ($2,040,000) and used $1,980,000 of the proceeds to construct a fire station. The $40,000 premium was transferred to a debt service fund. The $20,000 left in the capital projects fund at the end of the project was later transferred to the debt service fund. The bonds were dated April 1, 2015 and paid interest on October 1 and April 1. The first of 10 equal annual principal payments was due on April 1, 2016.
135.How would the bond sale be recorded?
A)As a liability in the debt service fund.
B)As a liability in the capital projects fund.
C)As an other financing source in the debt service fund.
D)As an other financing use in the capital projects fund.
136.The amount of capital outlay expenditures reported by the capital projects fund would be:
A)$1,980,000.
B)$2,000,000.
C)$2,040,000.
D)$3,000,000.
137.How would the government account for the transfer of the unused bond proceeds?
A)As a revenue in the debt service fund and as an expenditure in the capital projects fund.
B)As an other financing source in the capital projects fund and as an other financing use in the debt service fund.
C)As an other financing source in the debt service fund and as an other financing use in the capital projects fund.
D) As a special item in both the debt service and capital project funds.
138.How would the $40,000 premium be accounted for?
A)Amortized to interest expenditure in the debt service fund.
B)As an other financing source in the debt service fund.
C)Both (a) and (b) above.
D)None of the above.
139.What would be the amount of expenditures recorded by the debt service fund for the fiscal year ended December 31, 2015?
A)$320,000.
B)$120,000.
C)$ 90,000.
D)$ 60,000.
140.What would be the amount of expenditures recorded by the debt service fund for the fiscal year ended December 31, 2016?
A)$440,000.
B)$324,000.
C)$320,000.
D)$120,000.