ACCT 4421 Module 2 Practice Questions and
Answers 100% Solved
The city also transferred $200,000 from the general fund to a debt service fund to advance-fund
the $200,000 interest payment due October 15, 2019. Correct Answ_Dr. Nonreciprocal
transfer out $200,000; Cr. Cash $200,000
The city transferred $75,000 from the Air Operations Special Revenue Fund to the general fund
to close out the operations of that fund. Correct Answ_Dr. Cash $75,000; Cr. Nonreciprocal
transfer-in $75,000
The city transferred $150,000 from the general fund to the city's Electric Utility Enterprise Fund
to pay for the utilities used by the general and administrative offices during the year. Correct
Answ_Dr. Electric Utility Expenditure $150,000; Cr. Cash $150,000
The city transferred the required pension contribution of $2 million from the general fund to the
city's pension trust fund. Correct Answ_Dr. Pension Expenditure $2M; Cr. Cash $2M
,The city deposited into the general fund the proceeds of a $5.5 million dollar bond issue. The
bonds were sold for $5.7 million. Correct Answ_Dr. Cash $5.5M; Cr. Other financing source
- bond proceeds $5.5M
The Sadie School District is considering buying new computer equipment. They are thinking of
leasing the computers under an operating lease, making three end-of-year payments of $24,127.
Choose the amount of expenditure that would be incurred in the district's general fund to
recognize both the acquisition of the new computers and payment for them. Which of these
options achieves interperiod equity for the district?
A.) Dr. Expenditures $24,127 & interperiod equity NOT achieved
B.) Dr. Equipment $24,127 & interperiod equity achieved
C.) Dr. Expenditure $24,127 & interperiod equity achieved
D.) Dr. Equipment $24,127 & interperiod equity NOT achieved Correct Answ_C.) Dr.
Expenditure $24,127 & interperiod equity achieved
The Sadie School District is considering buying new computer equipment. They are thinking of
buying the computers and financing them with a $60,000, three-year, 10 percent note. The
district will repay the note and pay the entire interest with a single payment of $79,860 when the
, note matures.Instructions: Choose the amount of expenditure that would be incurred in the
district's general fund to recognize both the acquisition of the new computers and payment for
them. Which of these options achieves interperiod equity for the district?
A.) Dr. Expenditure $60,000; Cr. Expenditure $79,860 & interperiod equity achieved
B.) Dr. Equipment $60,000; Cr. Expenditure $79,860 & interperiod equity NOT achieved
C.) Dr. Equipment $60,000; Cr. Expenditure $79,860 & interperiod equity achieved
D.) Dr. Expenditure $60,000; Cr. Expenditure $79,860 & interperiod equity NOT achieved
Correct Answ_D.) Dr. Expenditure $60,000; Cr. Expenditure $79,860 & interperiod equity
NOT achieved
Assume that the County of Katerah maintains its books and records in a manner that facilitates
preparation of the fund financial statements. The county formally integrates the budget into the
accounting system and uses the encumbrance system. All appropriations lapse at year-end. At the
beginning of the fiscal year, the county had the following balances in its accounts.
Cash: $200
Fund balance unassigned: $50
Reserve for encumbrances (committed or assigned): $150
Answers 100% Solved
The city also transferred $200,000 from the general fund to a debt service fund to advance-fund
the $200,000 interest payment due October 15, 2019. Correct Answ_Dr. Nonreciprocal
transfer out $200,000; Cr. Cash $200,000
The city transferred $75,000 from the Air Operations Special Revenue Fund to the general fund
to close out the operations of that fund. Correct Answ_Dr. Cash $75,000; Cr. Nonreciprocal
transfer-in $75,000
The city transferred $150,000 from the general fund to the city's Electric Utility Enterprise Fund
to pay for the utilities used by the general and administrative offices during the year. Correct
Answ_Dr. Electric Utility Expenditure $150,000; Cr. Cash $150,000
The city transferred the required pension contribution of $2 million from the general fund to the
city's pension trust fund. Correct Answ_Dr. Pension Expenditure $2M; Cr. Cash $2M
,The city deposited into the general fund the proceeds of a $5.5 million dollar bond issue. The
bonds were sold for $5.7 million. Correct Answ_Dr. Cash $5.5M; Cr. Other financing source
- bond proceeds $5.5M
The Sadie School District is considering buying new computer equipment. They are thinking of
leasing the computers under an operating lease, making three end-of-year payments of $24,127.
Choose the amount of expenditure that would be incurred in the district's general fund to
recognize both the acquisition of the new computers and payment for them. Which of these
options achieves interperiod equity for the district?
A.) Dr. Expenditures $24,127 & interperiod equity NOT achieved
B.) Dr. Equipment $24,127 & interperiod equity achieved
C.) Dr. Expenditure $24,127 & interperiod equity achieved
D.) Dr. Equipment $24,127 & interperiod equity NOT achieved Correct Answ_C.) Dr.
Expenditure $24,127 & interperiod equity achieved
The Sadie School District is considering buying new computer equipment. They are thinking of
buying the computers and financing them with a $60,000, three-year, 10 percent note. The
district will repay the note and pay the entire interest with a single payment of $79,860 when the
, note matures.Instructions: Choose the amount of expenditure that would be incurred in the
district's general fund to recognize both the acquisition of the new computers and payment for
them. Which of these options achieves interperiod equity for the district?
A.) Dr. Expenditure $60,000; Cr. Expenditure $79,860 & interperiod equity achieved
B.) Dr. Equipment $60,000; Cr. Expenditure $79,860 & interperiod equity NOT achieved
C.) Dr. Equipment $60,000; Cr. Expenditure $79,860 & interperiod equity achieved
D.) Dr. Expenditure $60,000; Cr. Expenditure $79,860 & interperiod equity NOT achieved
Correct Answ_D.) Dr. Expenditure $60,000; Cr. Expenditure $79,860 & interperiod equity
NOT achieved
Assume that the County of Katerah maintains its books and records in a manner that facilitates
preparation of the fund financial statements. The county formally integrates the budget into the
accounting system and uses the encumbrance system. All appropriations lapse at year-end. At the
beginning of the fiscal year, the county had the following balances in its accounts.
Cash: $200
Fund balance unassigned: $50
Reserve for encumbrances (committed or assigned): $150
