(Solved by Humans)-Problem 16-2 (LO 4) Various funds and account groups. (Numbers 4, 5, and 8 are AICPA adapted.) 1....

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Problem 16-2 (LO 4) Various funds and account groups. (Numbers 4, 5, and 8 are AICPA adapted.) 1.    The following revenues were among those reported by Ariba Township in 20X8:   Net rental revenue (after depreciation) from a parking garage owned by Ariba . . . . . $         40,000 Interest earned on investments held for employees’ retirement benefits. . . . . . . . . . . . . 100,000 Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 What amount of the foregoing revenues should be accounted for in Ariba’s governmental funds?   a. $6,140,000 b. $6,100,000 c. $6,040,000 d. $6,000,000     Items 2 and 3 are based on the following information: The events relating to the city of Albury’s debt service funds that occurred during the year ended December 31, 20X9, are as follows:   Debt principal matured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000,000 Unmatured (accrued) interest on outstanding debt at January 1, 20X9 . . . . . . . . . . . . 50,000 Interest on matured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000 Unmatured (accrued) interest on outstanding debt at December 31, 20X9 . . . . . . . . . 100,000 Interest revenue from investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Cash transferred from the general fund for retirement of debt principal . . . . . . . . . . . . 1,000,000 Cash transferred from the general fund for payment of matured interest. . . . . . . . . . . . 900,000 All principal and interest due in 20X9 were paid on time. 2.     What is the total amount of expenditures that Albury’s debt service funds should record for the year ended December 31, 20X9? a. $940,000 b.  $950,000 c. $2,900,000 d.  $2,500,000 3.     How much revenue should Albury’s debt service funds record for the year ended December 31, 20X9? a. $600,000 b. $1,600,000 c. $1,900,000 d.  $2,500,000 4.     Financing for the renovation of Fir City’s municipal park, begun and completed during 20X9, came from the following sources:   Grant from state government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000 Proceeds from general obligation bond . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 Transfer from Fir’s general fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 What amounts should be recorded as revenue and other financing sources?   Revenues                                        Other Financing Sources   a. $1,000,000                                                                          $0   b. $900,000 $100,000   c. $400,000 $600,000   d. $0 $1,000,000   5.     On April 1, 20X9, Lake County incurred the following expenditures in issuing long-term bonds: Issue costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                           $400,000 Debt insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                90,000   When Lake establishes the accounting for operating debt service, what amount should be deferred and amortized over the life of the bonds? a.     $0 b. $900,000 c. $400,000 d.  $490,000     6.    The initial contribution of cash from the general fund in order to establish an internal ser- vice fund would require the general fund to credit Cash and debit a.     Accounts Receivable. b.     Interfund Transfers-Out. c.     Interfund Loans Receivable. d.     Expenditures. e.     Residual Equity Transfers-Out. 7.    The following assets are among those owned by the city of Foster: City hall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       $   800,000 Three fire stations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                      1,000,000 City streets and sidewalks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                      5,000,000 What amount should be included in Foster’s general fixed assets account group? a. Either $1,800,000 or $6,800,000 b. Either $1,000,000 or $6,000,000 c. Either $6,800,000 or $6,000,000 d.  $6,800,000 8.    Oak County received the following proceeds that are legally restricted to expenditure for specified purposes: Levies on affected property owners to install sidewalks. . . . . . . . . . . . . . . . . . . . . . . . .                         $500,000 Gasoline taxes to finance road repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                       900,000 What amount would be accounted for in Oak’s special revenue funds? a. $1,400,000 b. $900,000 c. $500,000 d.  $0