24. The General Fund of the City of Lexington approved a tax levy for the calend

Question

24. The General Fund of the City of Lexington approved a tax levy for the calendar year 2015 in the amout of $2,000,000. Of that amount, $30,000 is expected to be unco llectible. During 2015, $1.750,000 was collected. During 2016, S100,000 was collected during the first 30 days, $50,000 was collected during days 31-60, and $70,000 was collected during the days 61-90. During the post-audit, you discovered that the City showed $2,000,000 in revenues. How much revenue should the City recognize in 2015 from this tax levy? A. $1,850,000 B. $1,900,000 C. $1,920,000 D. $2,000,000 25. Which of the following should be accounted for in a permanent fund? A. A gift of sl,000,000 to a city, to be invested permanently, with the proceds to be used to maintain the city war memorials B. A git of $100,000 to a school board, to be given out $10,000 a year to the class t $10,000 a year to the class valedictorian as a college scho larship C. A git of $100,000 to a city, to be expended next year to purchase books for the city library D. A gift ofS1,000,000 to a city, to be invested permanently, with the proceeds to be used to distribute to one or more nonprofit groups. 26. A trunsfer from the General Fund to a debt service fund to make annual payments on principal and interest would be recorded in the debt service fund as a(an): A. Other Finaneing Source. B. Revenue. C. Direct addition to Fund Balance. D. Other Financing Use. During the fiscal year ended December 31, 2015, the City ofJohnstown issued 6% general obligation serial bonds in the amount of $2,000,000 at 102 (S2,040,000) 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 27. 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 another financing source in the debt service fund D. As another financing use in the capital projects fund 28. 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.

Explanation / Answer

24B $1,900,000 (1750000+100000+50000) Explanation: amount received in current year and received during next year upto 2 months. 25A A gift of $1,000,000 to a city, to be invested permanently, with the proceeds to be used to maintain the city war memorials. Explanation: amount should be invested permanently and should be used for capital maintainence not to be distributed. 26A Other Financing source Explanation: Its only adjustment no revenue or expense recognised. 27D As an other financing use in the capital projects fund. Explanation: since sale proceeds is either used or transferred, in capital projects fund. 28A $1,980,000 Only amount used in construction of fire station is treated as capital outlay.

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