Reference no: EM131211119
For each transaction below, choose the letter from the answer bank that most accurately describes the transactions that need to be considered for reconciling entries when converting this municipality's fund financial statements to government-wide financial statements. Answers can be used more than once, each transaction may have more than one answer. (Year end 2015)
1) The General Fund has an interfund payable at 12/31/14 to the Debt Service Fund of $50,000.
2) The General Fund has an interfund receivable on 12/31/14 from the Internal Service Fund of $100,000.
3) The General Fund has an interfund receivable on 12/31/14 from the Enterprise Fund of $50,000.
4) The municipality paid for the construction of a new General Capital Asset, the project was not completed at year end.
5) The municipality purchased Proprietary capital assets on March 1, 2014 entirely from and for its Enterprise funds.
6) The municipality issued General Long Term bonds on January 2, 2014 and received proceeds in the amount of $10,000,000.
7) The municipality has taxes receivable at year-end of $10,000 and expects to collect all of it by February 1, 2015.
8) The municipality paid for 2015's insurance policy in December, 2014.
9) December's salaries for General operations are paid. The municipality's employees get paid twice per month (on the 15 and last day of each month).
Answer Key:
Capital Asset-Related entry:
A1. Acquisitions of assets
A2. Dispositions (ie sales) of assets
A3. Depreciation
Long Term Debt-Related Entry:
B1. Issuance of new debt
B2. Payment or retirement of debt
B3. Accrual of Interest
C. Revenue recognition difference
D. Expenditure/Expense difference
E. Reclassification of Internal Service Funds
F. Elimination of Interfunds
No. No reconciling entries required
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