practice set problem file has all the problems to refer to with the other two excel spreadsheets file
ACCOUNTING ______ GOVERNMENTAL ACCOUNTING FINAL PROJECT Part I due: September 20 Part II due: September 27 Part III due: October 4 Part IV due: October 11 Name __Nicolas Garza Part I: Identify the fund 1. Utilizing the information below, indicate based on the number that corresponds to the transaction, which fund or funds are impacted and give a brief explanation of your choice. Part II: Governmental Funds 1. Review all of the journal entries in each excel template and if necessary, make corrections to your fund classifications table. 2. Prepare the budget for the General Fund ( Information for this entry is #4 below) 3. Post the budgetary accounts to the t-accounts 4. Prepare closing entries for the General Funds – (Fund Balance Classification information located in #30 below) 5. Prepare the closing entries for the debt service and capital project funds 6. Prepare the financial statements for the Governmental Funds Part III 1. Using the template, prepare closing entries for the Enterprise Funds 2. Using the Template, prepare the 3 financial statements for the Enterprise Funds and prepare the statement of cashflow reconciliation. Part IV 1. Explain the process of going from fund basis financial statements to Government Wide. Include in your discussion some of the common adjustments that need to be made to the governmental accounts and explain why adjustments are not needed for proprietary funds. 2. Prepare the Government Wide Financial statements. Check figures: General fund cash: $ 371,626 General fund unassigned fund balance 33,603 Governmental funds: Total fund balance 999,126 Enterprise fund cash: 187,500 Enterprise fund net position: 1,458,083 A set of Excel templates (Excel) are available for your use. Please post this completed document and your completed excel worksheets onto Blackboard. Part I: Identify the fund Utilizing the information below, indicate based on the number that corresponds to the transaction, which fund or funds are impacted and give a brief explanation of your choice. A few of the transactions are done as an example Transaction Number Fund or Funds Impacted (General, Capital Projects, Debt Service, Enterprise) Rationale for choice 1 General Fund For general governmental operations 3 General Fund & Enterprise Fund Transfer between General Fund and Enterprise Fund 4 General Fund Per GASB the general fund and special revenue funds are required to establish a budget, the other funds ( Capital project and enterprise funds) to not have budgetary requirements 5 General Fund General government operations. 6 General Fund Money owed and written off. 7 General Fund Money owed and paid completed. 8 General Fund Money used between entities and money is still owed for what was purchased. 9 Enterprise Money used to purchase supplies, but the full invoice isn’t paid yet. 11 General Fund & Capital Project Money transferred between these accounts. 12 Debt Service and Capital Project Bonds issued are to be used for the Capital Project 13 Capital Project Fund Encumbrance needs to be established 14 Capital Project Money used to build school but money is still owed to contractor. 17 Enterprise Money made completing project but money is still owed. 18 General Fund Money used to purchase equipment. 19 General Fund Received cash from different entities. 20 General Fund & Enterprise Money used to pay salaries within the government. 21 General Fund & Enterprise Money being taken and involved with spending and transferring to different accounts. 22 General Fund & Debt Service Money being taken out of general and transferred to pay debt. 23 Debt Service Money is being paid back and interest is being accrued also. 24 General Fund & Enterprise Money is separated into different entities. 25 Enterprise Accrued interest on bonds. 26 Enterprise Money spent on new project. 27 Enterprise Money borrowed and paid on 60 day note to cover cash shortage. 28 General Money borrowed and paid on 60 day note to cover cash shortage. PROVINCE OF EUROPA Transaction list for the year ended December 31, 2091 Account Structure: Because the Province has a limited number of revenue sources, revenue control accounts are not used. Rather, General Fund revenues are directly recorded into the following accounts (property taxes, sales taxes, fees licenses and permits, program fees, and intergovernmental grants) Similarly, expenditures are recorded directly into the following accounts: (general government operations, public safety, education, capital outlay, and debt service: principal and interest). The Province established the Bureau of Electricity and Water to operate as an enterprise fund. The enterprise fund reports expenses by object category using the following account titles: (salaries, supplies, depreciation, and interest). There are no fiduciary, special revenue, permanent, or internal service funds. The government uses account groups to record general fixed assets and general long-term debt. Beginning Balances: 1. At 12-31-2090, the remaining cash and supplies on hand in the government offices were transferred to the new Province government. The opening trial balance for the Province for 1-1-2091 was as follows: GENERAL FUND trial balance Jan. 1, 2091 debits credits Cash 26,000 Fund Balance: Supplies 13,000 Assigned (Reserved for encumbrances ) 9,288 _______ Unassigned 29,712 39,000 39,000 The supplies were office supplies for general government operations. The reserve for encumbrances relates to a purchase order placed in December of 2090 for engineering services (see item # 7,below). The Province honors outstanding encumbrances from previous years and the encumbrance should be re-established for 2091. For purposes of the Budgetary Comparison Statement, amounts are charged to the budget in the year they are initially encumbered, regardless of when the expenditure is incurred. 2. On December 31, 2090, the United Earth Council (U.E.C.) transferred the following capital assets. The Province Council assigned custody of these assets to the general Province government and the Bureau of Electricity and Water as follows: General Useful Salvage Government Bureau Life Value Land $ 2,000,000 $900,000 Buildings, roads, and other structures 1,395,000 450,000 10 $ 0 Equipment 480,000 150,000 5 0 Geothermal Generators 0 650,000 5 0 Total $3,875,000 $2,150,000 ========== ========== In return for these assets, the Province government issued $1,875,000, 10 percent general obligation serial bonds. Principal payments of $93,750 and interest payments on the bonds are to be paid at the end of each year starting on December 31, 2091. Similarly, the Bureau of Electricity and Water issued (at face value) $1,250,000, 10 percent long-term revenue bonds in exchange for the capital assets listed above. The bonds call for annual interest payments on January 1 and mature on January 1, 2101. Since these events occurred on the last day of 2090, they represent beginning balances for 2091. Note: (The difference between the asset values and the debt issued is properly recorded as beginning Net Position in the financial statements prepared using the economic resource measurement focus). Current Year Transactions: 3. The government of the Europa Province established the Bureau of Electricity and Water. The Bureau of Electricity and Water is in charge of providing the power and water for residents and the Province government. On January 1, 2091, the Province government agreed to contribute $300,000 for establishment of the Bureau of Electricity and Water, and transferred cash on February 1, 2091. 4. On January 1, 2091, The Province Council approved budgets for 2091 as follows: Budget Items Province Government (General Fund) Capital Additions Bureau of Electricity and Water Revenue and other financing sources Property Taxes Sales Taxes Fees, Licenses and Permits Charges for Services (Bureau) Program Fees: Education Intergovernmental grants Transfer from General Fund Proceeds from Bond Issues $3,665,000 750,000 250,000 70,000 510,000 $ 500,000 2,500,000 $3,250,000 300,000 1,250,000 Expenditures/expenses and other financing uses: General government operations Public Safety Education Operating expenses (Bureau) Capital Outlays Transfers to other funds 1,500,000 1,400,000 1,190,000 1,100,000 2,750,000 3,000,000 1,875,000 5. On January 10, 2091, a cash grant of $510,000 was received from the United Earth Council for operation of the Province. The grant provisions stipulate the funds are to be used to supplement general operations of the government. 6. On January 31, 2091, $3,700,000 in property taxes were levied. Of this, $18,500 (0.5% of property taxes) is estimated to be uncollectible. The remaining tax bills are expected to be collected within 60 days following the end of the fiscal year. During 2091, $3,520,000 was collected and $13,000 are identified as uncollectible and written off. 7. On January 5, 2091 the engineering report ordered in December of the previous year (see item 1 above) was received along with an invoice for of $ 9,124. The invoice