C 5_7a

Copley 5-7 Your Name Georgia Collier-Bolling

(a) Prepare Journal Entries in General Journal form to record the events in the Debt Service Fund:
You don't need any Dates. Just enter the Account Names & amounts in the yellow cells below.
To assist you, please refer to the Illustrative Case – Regular Serial Bonds in Chapter 5 starting on page 130.
Please note that a Fiscal Agent is not used.

Village of Harris – General Journal for the Debt Service Fund

2008
Debit Account Name Credit Account Name Debit
1 Cash 50,000
Other Financing Sources, Transfer In
Premium transferred to the Debt Service Fund
2 Cash 150,000
Other Financing Sources, Transfer In
Received from the General Fund
Expenditures-Interest 150,000
Cash
Record the First Interest Payment
3 Other Financing Sources-Transfers In 200,000
Expenditures-Interst
Fund Bal Reserved for Debt Service
Record the 2008 Closing Entry
2009
4 Cash 350,000
Other Financing Sources, Transfer In
Received from the General Fund
Expenditures-Interest 150,000
Expenditures-Principal 250,000
Cash
Record the Principal & the Second Interest Payment
5 Cash 142,500
Other Financing Sources, Transfer In
Received from the General Fund
Expenditures-Interest 142,500
Cash
Record the Third Interest Payment
6 Other Financing Sources-Transfers In 492,500
Fund Bal-Reserved for Debt Service 50,000
Expenditures-Interst
Expenditures-Principal
Record the 2009 Closing Entry

Page 1
 C 5_7a
Georgia Collier-Bolling 44 Possible points

Service Fund:
w cells below.
ter 5 starting on page 130.

Credit
2
50,000 2

2
150,000 2

2
150,000 2

2
150,000 2
50,000 2

2
350,000 2

2
2
400,000 2

2
142,500 2

2
142,500 2

2
2
292,500 2
250,000 2
44

Page 2
 C 5_7b
Copley 5-7 Your Name Georgia Collier-Bolling
13

(b) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the
Debt Service Fund for the Year Ended December 31, 2008.
To assist you I refer you to Illustration 5-4 on pages 138-139.

VILLAGE OF HARRIS
Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended December 31, 2008

Revenues:

Total Revenues 0 1

Debt Service Expenditures:

Interest 150,000 2
Principal 0 2
Total Expenditures 150,000 1

Excess (Deficiency) of Revenues over Expenditures (150,000) 1

Other Financing Sources (Uses):

Transfers In 200,000 2
Total Other Financing Sources (Uses) 200,000 1

Net Change in Fund Balance 50,000 1

Fund Balance – Beginning 0 1

Fund Balance – Ending $50,000 1

13

Page 3
 C 5_7b
Possible points

Page 4
 C 5_7c
Copley 5-7 Your Name Georgia Collier-Bolling

(c) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the
Debt Service Fund for the Year Ended December 31, 2009.
To assist you I refer you to Illustration 5-4 on pages 138-139.

VILLAGE OF HARRIS
Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended December 31, 2009

Revenues:

Total Revenues 0

Debt Service Expenditures:

Interest 292,500
Principal 250,000
Total Expenditures 542,500

Excess (Deficiency) of Revenues over Expenditures (542,500)

Other Financing Sources (Uses):

Transfers In 492,500
Total Other Financing Sources (Uses) 492,500

Net Change in Fund Balance (50,000)

Fund Balance – Beginning 50,000

Fund Balance – Ending $0

Page 5
 C 5_7c
13 Possible points

2
2
1

2
1

1
13

Page 6
 C 5_10a
Copley 5-10 Your Name Georgia Collier-Bolling

(a) Assuming the agreement meets the criteria for a Capital Lease under the provisions of
SFAS #13, make the entries required in (1) the Capital Projects Fund on July 1, 2008
and (2) in the Debt Service Fund on July 1, 2009.

See page 127 of Chapter 5

CITY OF GENOA
Capital Projects Fund

1 Expenditures-Capital Outlay 69,189

Other fiancing Sources-Capial Lease Agreements
Cash
Record the Capital Lease of Computer Equipment

See page 133 of Chapter 5

CITY OF GENOA
Debt Service Fund

2 Expenditures-Interest 2,659
Expenditures-Principal 12,341
Cash
Record the Lease Payment

Page 7
 C 5_10a
Georgia Collier-Bolling
12 Possible points

2
53,189 2
15,000 2

2
2
15,000 2
12

Page 8
 C 6_3
Copley 6-3 Your Name Georgia Collier-Bolling 5 Possible points

Why might it be desirable to operate Enterprise funds at a profit?

An Enterprise Fund is suppose to be self-supporting, by generating enough revenues from fees

to cover the funds expenditures. Therefore, an operaitng profit should be desirable for the
Enterprise Fund. The excess funds should be restricted in use by only being allowed to be used for
repairs, maintenance and other operatiional cost that may be incurred during the future by the
Enterprise Fund.
5 Possible points

Your Scores
C 5-7a 44 Points 44 Possible points
C 5-7b 13 Points 13 Possible points
C 5-7c 13 Points 13 Possible points
C 5-10a 12 Points 12 Possible points
C 6-3 5 Points 5 Possible points
C 6-10 29 Points 29 Possible points
C 7-6a 70 Points 70 Possible points
Total 186 Points 186 Total Possible Points

5.00% Percentage of the Grade in the Course

0.03% 0.03% Percentage of the Grade in the Course per Po
5.00% 186 Points
5.00% Proof

Page 9
 C 6_3
Possible points

nues from fees

owed to be used for

future by the

the Grade in the Course

the Grade in the Course per Point

Page 10
 C 6_10
Copley 6-10 Your Name Georgia Collier-Bolling

Prepare a Statement of Cash Flows for the Village of Parry Print Shop
Fund for the Year Ended April 30, 2009. Include the reconciliation of Operating
Income to Net Cash Provided by Operating Activities.

VILLAGE OF PARRY
Print Shop Fund
Statement of Cash Flows
For the Year Ended April 30, 2009

Cash Flows from Operation Activities:

Cash Received from Departments See the Schedule to Compute Cash Flows below
Cash Paid for Salaries & Wages See the Schedule to Compute Cash Flows below
Cash Paid for Supplies See the Schedule to Compute Cash Flows below
Cash Paid for Utilities See the Schedule to Compute Cash Flows below

Net Cash Provided by Operating Activities

Cash Flows from Non-Capital Financing Activities:

Payment of Interest on the Bank Loan

Payment of Principal on Bank Loan for short-term operating purposes
Transfer from Water Utility Fund for Working Capital needs

Net Cash Used for Non-Capital Financing Activities

Cash Flows from Capital & Related Financing Activities:

Transfer from General Fund

Loan from the Water Utility Fund for purchase of equipment
Purchase of Equipment
Payment of Interest to Water Utility Fund See the Schedule to Compute Cash Flows below

Net Cash Used for Capital & Related Financing Activities

Cash Flows from Investing Activities:

Collection of Interest See the Schedule to Compute Cash Flows below
Purchase of Investments

Net Cash Used for Investing Activities

Net Increase in Cash & Cash Equivalents

Cash & Cash Equivalents as of May 1, 2008
Cash & Cash Equivalents as of April 30, 2009

Reconciliation of Operating Income to Net Cash Provided by Operating Activities:

Operating Income

Page 11
 C 6_10

Adjustments:

Depreciation Expense 200,000

Increase in Receivables from Other Funds (10,000)
Increase in Salaries & Benefits Payable 10,000
Decrease in Accounts Payable (5,000)
Increase in Utility Bills Payable 1,000

Total Adjustments

Net Cash Provided by Operating Activities

Non-Cash Investing, Capital Related & Non-Capital Related Financing Activities:

Capital Lease of Equipment

Schedule to Compute Cash Flows: This section is not graded; however, it may help you with the amou

Accounts Original Balance Balance

Revenue Sheet Sheet
Operating Activities: (Expense) 05/01/08 04/30/09
Charges for Services-Due from Other Funds
Salaries & Benefits Payable
Supplies Used – Vouchers Payable
Utilities – Utility Bills Payable

Capital & Related Financing Activities:

Interest Expense-Accrued
Interest Payable to Water Utility Fund
Interest Payable to Bank Loan

Investing Activities:
Interest Revenue-Accrued
Interest Receivable

Page 12
 C 6_10
Possible points 29

990,000 1
(490,000) 1
(205,000) 1
(69,000) 1

226,000 1

(10,000) 1
(50,000) 1
8,000 1

29,000 1

100,000 1
300,000 1
(450,000) 1
(48,000) 1

(98,000) 1

-25,000 1
(100,000) 1

(75,000) 1

82,000 1
151,000 1
233,000 1

30,000 1

Page 13
 C 6_10

1
1
1
1
1

196,000 1

$226,000 1

$42,180 1
29

may help you with the amounts

Cash Flow
Amounts
$0
0
0
0

0
0

Page 14
 C 7_6a
Copley 7-6 Your Name Georgia Collier-Bolling

(a) Prepare Journal Entries in General Journal form to record the events & transactions
that occurred during the Fiscal Year Ended June 30, 2009.

General Journal for the Belvedere Community Trust Fund:

Debit Account Name Credit Account Name Debit

1 Cash 3,000,000
Additions-Contributions
Record Initial Contribution
2 Investment in XYZ Company Bonds 2,000,000
Accrued Interest Receivable 30,000
Cash
Record Investment in XYZ Bonds
3 Investment in ABC Company Stock 950,000
Cash
Record Investment in ABC Stock
4 Cash 60,000
Accrued Interest Receivable
Additions-Investment Earnings Dividends
Record Semi-Annual Interest Payment
5 Cash 19,000
Additions-Investment Earnings Interest
Record Dividend Payment Received
6 Cash 960,000
Investment in ABC company Stock
Additions-Investment Earnings-Net Increase
in FMV of Investment
Record Sale of ABC Stock
Investment in DEF Company Stock 965,000
Cash
Record Purchase of DEF Stock
7 Cash 60,000
Additions-Investment Earnings Interest
Record Second Semi-Annual Interest Payment
Deductions-Distribution To Community
8 Non Profit Organ 95,000
Cash
Record Distribution to Community Organizations
9 Deduction-Admin Expense 12,000
Cash
Record Administrative Expenses
10 Accrued Interest Receivable 30,000
Addition-Investment Earnings -Interest
Record Accrued Interest
11 Invest in XYZ Company Bonds 2,000
Invest in DEF Company Stock 5,000

Page 15
 C 7_6a
Additions-Investment Earnings-Net Increase
in FMV of Investment
Record Adjustment for Fair Value of Investments
12 Addition-Contributions 3,000,000
Investment Earnings Interest 109,000
Investment Earnings -Dividends 30,000
Investment Earnings-Net Increase in
FMV of Investments 17,000
Deductions-Admin Exp
Deductions-Distribution to Non profit
Net Assets Held in Trust for Com Non Profit
Record Closing Entries

Page 16
 C 7_6a
Georgia Collier-Bolling 70 Possible points

Credit
2
3,000,000 2

2
2
2,030,000 2

2
950,000 2

2
30,000 2
30,000 2

2
19,000 2

2
950,000 2

10,000 2

2
965,000 2

2
60,000 2

2
95,000 2

2
12,000 2

2
30,000 2

2
2

Page 17
 C 7_6a

7,000 2

2
2
2

2
12,000 2
95,000 2
3,049,000 2
70

Page 18