F8

Question 1

What does the Debt Service Fund do?

Answer 1

Pays currently due principal and interest on LT debt for GRaSPP funds.

Question 2

What is the Basic structure of the statement of fiduciary net position for fiduciary funds?

Answer 2

(Assets + Deferred Outflows) – (Liabilities + Deferred Inflows) = Net Position

Question 3

What is the JE to recognize supplies remaining at year end?

Answer 3

Purchase Method:
Supplies on hand inventory
       Fund Balance, Nonspendable
Consumptions Method:
No entry needed as supplies were debited to inventory and then expenditured as used. A corresponding entry changing the nonspendable classification of fund balance should have been done too.

Question 4

What is the JE to record the annual budget

Answer 4

Estimated Revenues
Appropriations
Budgetary Control

Question 5

What are the typical revenue sources of a special revenue fund?

Answer 5

• Intergovernmental revenues (sales taxes or gasoline taxes restricted for use)
• Grants and other financial assistance provided for a specific purpose
• Specific fees (parking fees, museum admission fees)
• Seizure of assets surrendered from illegal acts

Question 6

What is the closing BAE JE?

Answer 6

Revenues                                A
Unassigned Fund Balance     A
     Expenditures                      A
Appropriations                        B
     Estimated Revenues         B
     Budgetary Control             B
Budgetary Control                  E
     Encumbrances                   E